Congressional Leaders Join Calls for Walmart to Stop Draining Public Resources and Improve Working Conditions, Support Economy

Posted by on Oct 23, 2013 in Press Releases, Walmart Watch Blog | 7 Comments

FOR IMMEDIATE RELEASE: Wednesday, October 23, 2013

Congressional Leaders Join Calls for Walmart to Stop Draining Public Resources and Improve Working Conditions, Support Economy

Reps. George Miller and Schakowsky Challenge Walmart to End Reliance on Taxpayers to Support Workforce, Estimated to be $900K per Walmart Store

WASHINGTON, DC – Today, addressing previously unreported comments from Walmart CEO Bill Simon, which demonstrated that as many as 825,000 Walmart workers make less than $25,000 a year, members of Congress and Walmart workers called on the mega-retailer to improve working conditions and end the company’s reliance on taxpayer dollars to support its workforce.

“I support OUR Walmart workers who are simply asking Walmart, a corporation with nearly $17 billion in profits, to pay livable wages,” said Rep. Jan Schakowsky (D-IL). “These workers deserve safe workplaces and the right to speak out for their workplace rights without risking retaliation or being fired. It’s time that Walmart listen to their workers who are here to demand what all Americans want: fair pay, fair rules and fair treatment.”

Walmart workers and supporters have been calling for Walmart, the world’s largest retailer, to improve working conditions, stop retaliation against those who speak out, and increase hours to ensure workers earn a minimum of $25,000 a year for full-time work.  In doing so, it would allow workers the ability to cover the basics and help contribute to the economy.

The members of Congress were joined by three of the 825,000 Walmart workers earning less than $25,000 a year.

“I work hard, and I want to be able to support my family and earn enough so I don’t have to rely on public assistance to survive,” said Anthony Goytia, a Walmart worker from California. Goytia, who works full-time, has worked at Walmart for one year and makes less than $16,000 a year.  As a result, he relies on SNAP and Medical to keep the family afloat.

In a rare release of information about the company’s wages and benefits, Walmart US CEO Bill Simon discussed details about workers’ annual income in a recent presentation at Goldman Sachs annual retail conference.  In the presentation, Simon notes that 475,000 associates earn more than $25,000 a year.  With 1.3 million associates in the country, this means that somewhere around 825,000 associates earn less than that amount.

Currently, Walmart is making $17 billion in profits annually and the company’s controlling family, the Waltons, have a net worth of more than $144.7 billion.  Meanwhile, workers are making low wages and not getting enough hours, forcing many to rely on public programs to support their families even though they work for the country’s largest private employer.

Earlier this year, a Congressional report calculated that Walmart workers are forced to rely on $900,000 in taxpayer funded supports, including food stamps and healthcare, at just one of the company’s 4,000 stores.  This number is expected to increase as more workers apply for healthcare through Medicaid because they are ineligible for Walmart healthcare plans.

“Wal-Mart is the nation’s largest private-sector employer, yet they pay such low wages that many of its workers are unable to provide for their families. This is wrong. When workers win, their families win, and we all win. If big corporations like Wal-Mart paid their workers higher wages, families could live better. And federal taxpayers would not have to foot the bill to help them keep their heads above water,” said Rep. George Miller (D-Calif.).

At the forum, Catherine Ruetschlin, a policy analyst from Demos, outlined the economic impact of Walmart increasing annual salaries to $25,000 a year from her report,  Retail’s Hidden Potential: How Raising Wages Would Benefit Workers, the Industry and the Overall Economy. The report shows a wage floor equivalent of $25,000 per year for a full-time, year-round employee for retailers with more than 1000 employees would lift 1.5 million retail workers and their families out of poverty or near poverty, add to economic growth, increase retail sales and create more than 100,000 new jobs.

“Putting money in the pockets of Walmart workers is good for the store, good for the economy and good for families,” said Ruetschlin.  “We know that when low-wage workers have money to spend, they do.  In the case of Walmart workers, that means more spending at the stores they work, more profits for Walmart.  It also means more jobs could be created and fewer workers would be forced to rely on public assistance.”

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7 Comments

  1. Tom P Noonan
    October 23, 2013

    Union yes for all Walmart Workers and for all Sam’s Club 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 and without silence all the Walmart Workers and without silence all the Sam’s Club Workers and Walmart Lower Price for all Grocery and Merchandise is not good for the Amweica long time age back in yaer 1988 Sam’s Club use to be Pace Membership Warehouse and K-Mart sold Pace Membership Warehouse the Sam’s Club in the year 1993 long time age Pace Membership Warehoue Grocery and and Merchandise been too Expense in the year 1988 and throught 1992 long time age long time age in the year 1983 throught year 1994 Sam’s Club let all Employee work Full Time Job for Living Wage With Affordable Healthcare long time ago the the year 1988 through year 1994 ling time ago in the year 1993 Pace Membership Warehouse sold to Sam’s Club own by Walmart.

    Thank You Very Much
    From Tom P Noonan

    Reply
    • Tom P Noonan
      October 23, 2013

      long time ago back in year 1993 K-Mart sold Pace Membership Warehouse to Sam’s Club own by Walmart.

      Thank You Very Much
      From Tom P Noonan

      Reply
  2. MEProudLIBERAL
    October 25, 2013

    Walmart is a plague on society.

    Reply
  3. floridanativee
    October 25, 2013

    Liberalism is a plague on society.

    Reply
  4. R. W. Hermanson
    November 1, 2013

    It is clear that Walmart uses the “welfare system” to augment worker simple basic financial needs. The choices: Either pay a livable wage or have government subsidize to the point of livable wage, and, provide medical coverage or have the government provide that coverage. Walmart executives, while espousing capitalism, free enterprise, anti-union and help form basic “Republican” ideology, use that very “welfare” (government food stamps, health benefits etc.) system they personally and corporately decry to fill their profit coffers. What this forces is: the Walmart workers have to gain relief through their only safety valve available to protect themselves — voting Democrat. So has not, in a practical sense, the Democratic Party become the “union” for the average worker? As for personal or corporate principles, are there any when it comes to corporate profit? No. Oh, I am wrong, there is a principle involved. It is: screw the worker whenever there is a possibility the issue will negatively affect corporate profits. And, on a more personal level, the executive states: Screw the company; I will fight for every last million I can take home in salary and bonuses. Lets see, what do I dislike more? Do I like “socialism”? Not particularly. But what choice is there?! Take away the governmental financial and medical support of folks earning less than $25,000 or so a year, and what would happen?! A thought: when corporate ideology and policies results in serious if not nasty social concerns for the employees of that corporation, it no longer is simply a corporation/worker problem, it becomes a societal issue. What will “we” do?!

    Reply
  5. LIMAROCKS
    November 9, 2013

    Tom, we love in a Market Economy where supply versus demand dictates wages not pleas or demonstrations sponsored by Dues Collecting Union Thugs. As far as the tax dollars giving benefits to WalMart employees this is wrong. We need to cut all welfare and subsistence programs for the poor if they need food or healthcare then they can find a job, starve, or die. SURVIVAL OF THE FITTEST.

    Reply
    • Greg Davis
      November 15, 2013

      Sure…why do you weigh in on this website? Starve or die? Is that logic? Are you making an argument here? Come Sunday morning you are in the front row, praising and giving thanks to ‘Him’… Why bother

      Reply

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