Labor Practices Continued Concern for Investors

Posted on April 12, 2012 by jway

Yesterday, Making Change at Walmart greeted Walmart investors as they gathered in Toronto. Making Change at Walmart activists passed out fliers highlighting how Walmart’s poor business practices have curbed their ability to grow globally and continue to represent challenges to growth in India, South Africa and urban communities in the US.

Many investors and analysts are showing increasing interest in labor issues due to a number of recent events. In January, ABP, the Netherlands’ largest pension fund pulled their investments in Walmart due to poor labor practices. ABP officials said that they were struck by the inordinately high number of lawsuits and complaints filed against Walmart.

A few weeks ago, Wharton School and Harvard Business studies made headlines by demonstrating that good staffing practices are also good business.  These findings fly in the face of Walmart’s traditional model of slashing expenses through minimizing staffing and stretching existing employees.

Moreover, around the US as Walmart attempts to move into coveted markets in major cities, they are met with opposition due to the company’s notoriously bad labor relations and its creation of poverty level jobs. Most recently, Walmart was forced to delay multiple store openings in the nation’s capital due to local opposition.

In Canada, Walmart has justified its labor practices in the US by citing contextual differences between the countries. Meanwhile, despite the fact that Canada may be considered a more union-friendly country, Walmart has maintained the same demeanor toward labor there as in the US. Until Walmart improves their relationship with labor globally, the company will undoubtedly struggle to grow as they are met with opposition and investor concerns.

Comments

  • Anonymous

    it is time for Walmart Change into United Food and Commercial Workers Unionize Walmart Store for all Walmart Cashier Workers and for all Walmart Produce Workers and for all Walmart Deli Department Workers and for all Walmart Bakery Department Workers. and it is time for Walmart Change into Teamster Unionize Store for all Walmart Truck Drivers Workers and for all Walmart Hardware Department Workers and for all Walmart Gardening Department Workers and for all Walmart Stock Persons Workers and for all Walmart Maintenance Association Workers and for all Walmart Customer Service Desk Workers and for all Walmart Courtesy Association Workers and for all Sam’s Club Truck Drivers Workers and for all Sam’s Club Forklift Drivers@Stock Person Workers and for all Sam’s Club Maintenance Workers and for all Sam’s Club Cashier Workers and for all Sam’s Club Meat Cutter@Meat Wrapper Workers and for all Sam’s Club Produce Workers and for all Sam’s Club  Cafe Workers and for all Sam’s Club Bakery Department Workers and for all Sam’s Club Membership Desk Workers and for all Sam’s Club Cart Attendant Workers. and it is time for Walmart Change into United Healthcare Workers Unionize Walmart Store for all Walmart Pharmacy Workers and for all Sam’s Club Pharmacy Workers and it is time for Walmart Change into Communications Workers of America Unionize Walmart Store for all Walmart Electronics Workers and for all Sam’s Club Electronics Workers. and it is time for Walmart Change into United Auto Workers Unionize Walmart Store for all Walmart Tire@Lube Express Workers and for all Sam’s Club Tire@Battery Installment Workers right of away and right now please. by make Walmart give all Walmart Workers and all Sam’s Club Workers a Living Wage With Affordable Healthcare right of away and right now please without close down all the Walmart Store and without close down all the Sam’s Wholesale Club.

    Thank You Very Much United Food And Commercial Workers Union And Teamster Union And OUR Walmart And Making Change At Walmart And Walmart Watch And Employee Free Choice Act for Trying Make A Better Place To Work For All Walmart Workers And For All Sam’s Club Workers From Tom P Noonan

  • http://www.facebook.com/gero1369 Geoffrey Pearson II

    How about a copy of the flyer that was handed out?!?

  • Anonymous

    Every advance in this half-century:  Social Security, civil rights, Medicare, aid to education…  one after another- came with the support and leadership of American Labor.

    • Anonymous

       If all that is true, why has the private sector union participation dropped from 40% to 6% in the last half century? Doesn’t sound like a record to be proud of at all.

      • Anonymous

        The beginning of wisdom is found in doubting; by doubting we come to the question, and by seeking we may come upon the truth. 

      • Anonymous

         You mean like lemmings following the first one over the cliff I guess. So you are proud of the drop from 40% to 6% with a continuing trend? Can’t answer the question, so just follow the union boss.

      • pattysboi

        Why do YOU hate unions so much? Could it be that your employees (Who I have immense sympathy for!) tried to let you know that conditions aren’t all you tout them to be?

      • Anonymous

         I have worked as a supervisor in a unionized plant that is gone now due to unions. That was many years ago. I have no unionized employees now as they are not a factor in the workplace anymore. They are an anachronism. Unions don’t really matter. I like the American system and the unions are unamerican. I hate to see anybody lowered to be average. Hundreds of millions of dollars of union members dues have been wasted over the last 2 decades trying to unionize Wal-Mart with zero success. The only winners have been the union bosses who get fat on them with no advantage for Joe Sixpack.