Walmart Watch

As Walmart celebrates its 50th anniversary this year, the company will undoubtedly tell a one-sided story of the impact it has on communities. We know this won’t be the complete story. As the largest private employer in the world, Walmart has impacted us all. The Walmart at 50 nationwide tour and website provides the rest of us with a chance to tell what fifty years of Walmart has truly meant in our lives and our communities.

The Huffington Post recently reported on the website and tour.

Along the way, team members have stopped to project their collected videos on the sides of Walmart buildings for as long as store officials have allowed…The road trip will hit several more cities before concluding next month in Bentonville, Ark., where Walmart will hold its shareholder meeting.

WalmartAt50 pools the stories of a diverse group of workers, customers and community members. You can hear their stories and share yours on the site. Stay tuned for more details as the Walmar at 50 tour rolls into Washington, DC .

Forbes recently published a Top 5 CEOs that Should Have Already Been Fired list. The CEOs that topped the list were not guilty of just one blunder, but were considered for the long-term damage they have done. Unsurprisingly, Walmart’s CEO Mike Duke made the cut at a respectable #3.

These 5, frequently honored for their position, control of resources and personal wealth, are doing horrific damage to their companies, hurting investors, employees, suppliers and the communities that rely on their organizations. They should have been fired long before this week.

Mike Duke most recently came under fire for his questionable handling (or should we say possible cover up?) of the alleged bribery scandal in Mexico. Recently, an employee-led petition garnered over 15,000 signatures calling for his resignation in light of the scandal.

We now know Mr. Duke’s business unit saw no problems with bribing foreign officials to grow its business. Just on the basis of knowing about illegal activity, not doing anything about it (and probably condoning and recommending more,) and then trying to change U.S. law to diminish the legal repercussions, Mr. Duke should have long ago been fired.

The article, however, points to a questionable business strategy as grounds for firing Duke long before the scandal was reported.

Unfortunately, WalMart peaked at about $70 in 2000, and has been flat ever since. Investors have gained nothing from this strategy, while employees often work for wages that leave them on the poverty line and without benefits. Scandals across all management layers are embarrassing. Communities find Walmart a mixed bag, initially lowering prices on some goods, but inevitably gutting the local retailers and leaving the community with no local market suppliers. WalMart needs an entirely new strategy to remain viable – and that will not come from Mr. Duke. He should have been gone long before the recent scandal, and surely now.

With a resume like Duke’s, it makes you wonder what a CEO’s got to do to land the #1 slot.

*All indented quotes above are from the Forbes article Oops! Five CEOs Who Should Have Already Been Fired (Cisco, GE, WalMart, Sears, Microsoft)

FOR IMMEDIATE RELEASE

May 14, 2012
CONTACT press@ufcw.org

Walmart Associate-Shareholders Launch First-Ever Campaign-Style Get Out the Vote Effort on Resolution to Rein in Executive Pay

 

Local “Proxy Parties,” Direct Mail, Phone Banking and Online Mobilization Kick Off

 

LOS ANGELES – Hourly Walmart associates who also hold shares in the company, including four who filed a resolution (proposal #6) to create more transparency and accountability on executive pay, are reaching out to fellow Walmart shareholders to urge them to vote FOR the proposal. They are also encouraging other shareholders to vote against several current members of the Board of Directors up for re-election, including CEO Mike Duke and board chairman Rob Walton.

There are hundreds of thousands of shareholders who are either current or former Walmart retail associates. Through the Organization United for Respect at Walmart (OUR Walmart), these associates are spreading the word with an unprecedented campaign-style GOTV effort.  For the first time ever, Walmart associates will contact other associate-shareholders through direct mail, phone banking and social media about voting their proxy ballots.

Across the country, local “proxy parties” are being planned for associate shareholders to come together and vote in the weeks leading up to the shareholder meeting June 1st.  At the parties, associate-shareholders will discuss their concerns over the consistent underperformance of Walmart stock, executive performance incentives, and, in the wake of recent allegations of widespread bribery and cover-up, whether the current board of directors is ethically fit enough to lead the company.

“When I talk to my co-workers and fellow shareholders, everyone agrees we need to hold Walmart’s executives more accountable,” said Carlton Smith, a long-time Walmart associate and shareholder in southern California. “We’re energized and ready to get out the word about voting for proposal #6 and against the re-election of current directors who have lost their way. Now is the time for Walmart and the Walton f]mily to recognize the importance of new leadership in order to get the company back on track.”

The effort comes on the heels of an announcement by the New York Pension fund that it intends to vote against five current members of the Board of Directors, including Walton heir Rob Walton. Support for the resignation of CEO Mike Duke and Board Chair Rob Walton continues to grow with a petition from Walmart associate Venanzi Luna adding 10,000 signatures in only a week.

Proposal #6 was introduced by Mary Tifft, Jackie Goebel, Girshriela Green and Carlton Smith, all of whom are current Walmart associates, with collectively over 60 years of service with the company.

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Important disclosure: The UFCW and OUR Walmart have provided technical assistance to the four shareholder sponsors of Proposal #6, and we continue to support their efforts to campaign on its behalf.

This post was written by Ben Waxman.

The top corporate leadership of Walmart has been under fire lately, thanks to a New York Times story that alleged widespread bribery by the company in Mexico and a cover up by top executives. The company is now under investigation by the U.S. Justice Department for violation of the Corrupt Foreign Practices Act, which could result in billions of dollars in fines. The scandal has contributed to the perception that there is a culture of lawless at the very top of the company.

If true, the allegations against Walmart’s top leadership show that the company has serious problems at the very top. It’s very difficult to trust the elite management. That’s why Walmart associates have called for both CEO Mike Duke and Walmart Board Chairman Rob Walton to resign.

Concern is growing about Walmart’s reported misdeeds, especially at the local level. Could bribery similar to what allegedly happened in Mexico be happening here?  That’s a question that some are asking in locations where Walmart is looking to build additional stores. For example, a member of a local Council in Silicon Valley recently delayed a vote on allowing Walmart to build a new grocery store until more information on the Mexican bribery scandal was available.

Council member Matt Sullivan, who requested a special hearing Monday to appeal the Planning Commission’s March approval of the plan, continued the hearing after nearly three hours. He asked for more time to research accusations that Walmart de Mexico was involved in bribery to gain market share in Mexico.

“Information has come to light that Walmart possibly violated the Foreign Corrupt Practices Act,” Sullivan said. “We need to know the potential impacts this could have under the circumstances.”

Walmart is seeking approval to open a Neighborhood Market grocery in the former Nob Hill location on Santa Rita Road.

In addition to his tough questions for Walmart, Sullivan wants to pass an ordinance that would limit the amount of business that the city could do with a corporation that has been found guilty of committing a crime. That would mean Walmart would be barred from doing business with the city if it was convicted on charges connected to Corrupt Foreign Practices Act.

One thing is clear: Walmart’s problems in Mexico and the United States seem to come from the same issue. The company is obsessed with growth at any cost. As a result, Walmart makes all kinds of promises that often turn out to be untrue. It also makes all kinds of political and charitable donations to gain influence. Obviously, this strategy can backfire.

How much more trouble will the Mexican bribery scandal cause for Walmart at the local level? Stay tuned.

The following was written by Stacy Mitchell and originally posted by Grist.

A few weeks ago, The New York Times ran a story on the front page of the business section under the headline “Unexpected Ally Helps Walmart Cut Waste.” The retailer’s accomplice, readers of the article learned, is the Environmental Defense Fund, one of the largest and most influential environmental groups in the country. EDF has been working closely with Walmart on its sustainability efforts since 2005, and has even opened an office in Bentonville, Ark., where Walmart is headquartered.

The Times noted that EDF “does not accept contributions from Walmart or other corporations it works with.” EDF itself often mentions this when the subject of Walmart comes up, making note of it on its website, as well as in blog posts and other communications about its work with the company.

But, while it’s true that Walmart does not fund EDF (either directly or through its internal, company-run foundation), the environmental group does receive an awful lot of money from the Walton Family Foundation. Since 2004, the foundation has given EDF more than $53 million. Last year, the foundation’s $13.7 million grant to the group amounted to about 15 percent of EDF’s budget. After readers brought this to the attention of The Times, the newspaper amended its story and ran a correction noting the Walton foundation’s grants to EDF.

Established by Walmart founder Sam Walton in 1987 and run today by his children and grandchildren, the Walton Family Foundation has quietly grown into one of the largest foundations in the country. Last year, it ranked second in the nation based on total giving, behind only the Bill & Melinda Gates Foundation.

It’s impossible to untangle all the connections between the Walton Family Foundation and the Walmart corporation. They are separate entities, but the Waltons pull the strings within both — the family has complete control over the foundation and significant control over the corporation.

The foundation’s board is made up entirely of Waltons. Walmart’s board includes three family members: Rob Walton, who’s been a director since 1978 and chair since his father Sam died 20 years ago; Jim, another of Sam’s sons; and Greg Penner, who is married to Rob Walton’s daughter, Carrie, one of the more visible and active directors of the foundation.

More important than board seats is stock: The Waltons own about 50 percent of Walmart’s stock. Yes, it’s mind-boggling, but a single family owns half of the second-largest company on the planet, a corporation whose revenues last year exceeded the GDP of all but 23 countries.

This year alone, the Waltons will pocket more than $2.7 billion in dividends from their Walmart stock. That’s more than the combined income of 53,000 American households earning the median income. The Waltons’ wealth and their capacity to fund their foundation rests not on a residual fortune amassed generations ago, but rather on a fat pipeline of profits flowing directly from Walmart’s current success.

The overlapping interests of the Walton foundation and the Walmart corporation are particularly evident in the realm of the environment. Walmart launched its sustainability campaign in 2005. About the same time, the Walton Family Foundation began ramping up its giving to environmental causes. The environment is now one of three major funding areas for the foundation.

Last year, the foundation made $71 million in grants to environmental organizations — with the largest grants going to groups that have collaborated with Walmart. In addition to EDF, top recipients included Conservation International, which has a corporate partnership with Walmart, and the Marine Stewardship Council, which began receiving foundation support the same year it agreed to certify and provide an eco-label for some of the seafood Walmart sells. These three organizations accounted for 46 percent of the foundation’s environmental funding last year.

Jon Coifman, spokesperson for EDF’s Corporate Partnerships Program, says that, while the organization has an ironclad policy of not accepting donations from the corporations it works with, EDF has always been less restrictive with respect to individual donors and family foundations because “it would simply be prohibitive to attempt to vet every stock portfolio or source of income.” Coifman also says that EDF “holds Walmart to the same standards we would any other company.”

What does it mean for the environmental movement that the Walton Family Foundation is now one of the largest environmental grantmakers in the nation? For one thing, it means that Walmart’s money is exerting significant influence in setting the agenda, defining the problems, and elevating certain kinds of approaches — notably those that reinforce, rather than challenge, the power of large corporations in our economy and society. That’s a worrisome trend given how far this company’s tentacles already reach into our economy and government.

Members of OUR Walmart and Warehouse Workers United have issued a statement of solidarity with Bangladeshi factory workers in the wake of the brutal torture and murder of Bangladeshi labor activist Aminul Islam in April, delivered by OUR Walmart member Cindy Murray.  Islam was a union leader at the Bangladesh Center for Worker Solidarity (BCWS), a worker rights organization active in Bangladesh’s low-wage garment industry, where Walmart is a major buyer. Before he was killed, Aminul Islam and other BCWS leaders faced multiple arrests, torture, false criminal charges, and threats to their safety in recent years because of their outspoken advocacy in defense of garment workers’ rights.

Show your support for factory workers who make goods for Walmart by signing this petition to urge the Government of Bangladesh to investigate Islam’s torture and murder. Click here to donate to BCWS’s efforts to call for the investigation.

Infographic by Ethical Ocean – eco friendly products

For Immediate Release: May 7, 2012
Contact [press@ufcw.org

UFCW PRESIDENT COMMENDS DNCC FOR RETURNING WALMART GIFT CARDS

WASHINGTON, D.C. — Joe Hansen, International President of the United Food and Commercial Workers International Union (UFCW), today released the following statement commending the Democratic National Convention Committee (DNCC) for returning $50,000 in Walmart gift cards.

“I commend the DNCC for doing the right thing. The allegations of bribery and corruption against Walmart are serious and there is no way to know whether these contributions are tainted. Furthermore, Walmart has a long track record of mistreating their workers, discriminating on the basis of gender, trampling on the right to organize, and fostering a race to the bottom in the retail industry that is bad for the middle class and our entire nation. Walmart is also a flagship member of the controversial right-wing American Legislative Exchange Council (ALEC), which has been linked to laws busting unions and weakening voting rights. Simply put, this is a company whose conduct flies in the face of the values we stand for as Democrats. I hope the DNCC’s decision to return these gift cards signals the beginning of the end of the Democratic Party’s relationship with Walmart.”

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The United Food and Commercial Workers International Union (UFCW) represents more than 1.3 million workers, primarily in the retail and meatpacking, food processing and poultry industries. For more information about the UFCW’s effort to protect workers’ rights and strengthen America’s middle class, visit www.ufcw.org, or join our online community at www.facebook.com/UFCWinternational and www.twitter.com/ufcw.

Hundreds of Milwaukee and Kenosha, WI residents greeted the Nitro “Walmart at 50” tour as it rolled into town this week. The groups kicked off the night with a projected screening of Walmart at 50 videos, which were collected from associates and community members around the country to show the true impact of Walmart. They were also greeted by a few uninvited cop cars.

“Showcasing these videos was a great way to educate our neighborhood about the potential risks a Walmart will pose on our area,” said Karey Weyenberg, a resident in South Milwaukee. “I’m glad so many people came out to hear these stories and I hope Walmart will change its practices before it tries to set ground in our community.”

“Having the ‘Walmart at 50’ tour come through our town was great,” said Jerry Synowitz, a Walmart employee and OUR Walmart member. “It really started a conversation we need to be having. I was even able to sign up a new OUR Walmart member because of the events.”

The front lawn party was held directly across the street from the proposed location of a new Walmart for the town. The event gave local community members to chance to voice their concerns and learn more about the impact Walmart has had in other towns. The tour also visited a Walmart store and projected the videos on the side of the building.

The “Walmart at 50” tour will be in Chicago through the weekend.

In light of reports that Walmart not only bribed public officials in Mexico, but that top executives had known of the scandal and chosen to cover it up, one employee is questioning whether she can trust Walmart with her future.

“I’ve given a lot to this company and I’m very angry that top executives at Walmart are said to be involved in bribing public officials in Mexico and then trying to cover the whole thing up. I’m worried because while I am working hard, now I’m hearing that they’re risking our company by lying and cheating,” said Venanzi Luna, a Walmart employee and OUR Walmart member. “For years my coworkers and I have been saying that this company has lost its way. I didn’t realize it had gotten this bad!”

Luna decided that something needed to be done. She started her own petition calling for the resignation of Walmart CEO Mike Duke and Chairman Rob Walton, as well as a thorough and independent investigation into what really happened. Her petition received over 4,000 signatures within the first day it was posted.

The reported cover-up by Walmart executives at the highest levels is the latest evidence that a culture of lawlessness dominates the highest levels of the company’s leadership.  Walmart employees have experienced this first hand; time-and-time again workers have been forced to resort to legal action to protect themselves from discrimination, to ensure their rights are not violated and to simply receive an hour’s pay for an hour worked.

“It is time for things to change. Walmart needs to take responsibility for its actions and change its leadership,” Luna said.

This article was originally posted on California Labor Federation’s “Labor’s Edge” blog.

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© 2011, United Food and Commercial Workers International Union.