Wal-Mart defends its labor practices as pressure mounts

David Strow

Wednesday, Sept. 22, 1999 | 11:21 a.m.

Wal-Mart Stores Inc. expressed confidence that a union boycott against its Nevada stores will be ineffective, one day after the state AFL-CIO asked its 150,000 members to steer clear of the retailer's outlets.

"Our stores in this state really enjoy a very loyal customer base," said Wal-Mart spokeswoman Daphne Davis. "We certainly expect that to continue. Good union members shop our stores.

"Union members are good, hard-working people, and we appreciate their patronage."

The Nevada AFL-CIO voted Monday, at the behest of the United Food and Commercial Workers Union, to ask all affiliate unions to honor an indefinite boycott against Wal-Mart. The proposal was triggered by Wal-Mart's plans to build combination retail and grocery stores in Clark County, stores christened "superstores" by Wal-Mart.

The AFL-CIO estimates that more than 300,000 Nevadans -- more than 20 percent of the state's population -- live in union households.

The Clark County Commission is set to examine a proposal this evening that would require stores with 100,000 square feet of space or more, offering both retail products and groceries, to put each business in a separate building. If approved, that proposal would essentially kill Wal-Mart's Superstore proposals.

The boycott proposal didn't directly mention the Superstores as a motivation. Instead, the UFCW document accused Wal-Mart of paying inadequate wages and benefits, destroying small businesses, degrading the standard of living in communities where it operates, selling products produced with child labor and in third world "sweatshops," and engaging in "vicious anti-union practices."

Davis denied all of the union's charges, saying they were the product of a frustrated union leadership facing declining numbers.

"This is truly an effort by union leadership out of frustration, because there have been several unsuccessful attempts to organize Wal-Mart associates," Davis said. "Associates have said they don't need a third party to help them communicate with management.

"Our numbers are growing, and union membership is declining."

She also referred to union charges that Wal-Mart's wages and benefits are inadequate as "fiction." Davis said company employees have to work just 28 hours a week to become eligible for full-time benefits, a group that includes 70 percent of employees.

"If what they were saying were true, why would so many people choose to work for Wal-Mart?" Davis said. "We are extremely competitive, particularly for the retail industry. We always provide competitive wages, and comprehensive health coverage."

Davis acknowledged that the child labor issue has been of concern to the company, but said that Wal-Mart wasn't the only company to face those issues.

"Like so many retailers, including retailers with employees represented by labor, Wal-Mart is very concerned about our products," Davis said. "We have the same concern they do."

Davis said the company has established a strict set of standards for its vendors and terminated about 100 contracts last year for violation of those standards.