Atlantic Monthly: The New War Over Wal-Mart
Posted on May 2, 2006 by webteam
The June 2006 issue of Atlantic Monthly profiles Wal-Mart Watch board chair and SEIU president Andrew Stern. The story examines Wal-Mart’s role in the debate over our national health care system, explains his motivations for starting Wal-Mart Watch, and talks about the significance of the Susan Chambers health care memo. Excerpts are below:
Stern has something much grander in mind even than unionizing Wal-Mart. “Ford wasn’t created to be a health-care provider; it was created to produce cars,” Stern says. “My goal is to get Wal-Mart’s leadership out there in traffic and holler, ‘We can no longer compete in the global economy when health care is factored into the cost of our products.’ If Wal-Mart’s CEO, Lee Scott, were to come out and say, ‘We need a national health-care system that works for everyone,’ then it’s a whole new ball game.”
After the 2004 election, SEIU joined with environmentalists, women’s groups, and community activists to form Wal-Mart Watch, hiring seasoned Democratic operatives and jumping into the public debate. The new group focused much of its efforts on the company’s health-care programs, with considerable success. Wal-Mart, despite investing heavily in public relations and making slight improvements in its plans, was unable to stop the Maryland law or quiet the growing chorus of critics.
The company appears to have no clear idea of how to stop the fallout. Some Wall Street analysts believe the “headline risk” associated with the negative publicity is one reason for Wal-Mart’s sagging stock price. The company topped Fortune’s most-admired list in 2003 and 2004—but slipped to twelfth place this year.
Click here to read the full story from Atlantic (sub. req.)
Click here to read more about Wal-Mart and healthcare.
