Union targeting Wal-Mart changes in post-Walton era

Grace Leong

Thursday, May 24, 2001 | 11:13 a.m.

The name of legendary retailing genius Sam Walton is being invoked by the United Food & Commercial Workers union as it accelerates a national organizing drive, centered in Las Vegas, at Wal-Mart Stores Inc.

The union says it wouldn't have had a chance to organize the Bentonville, Ark., retail giant while Walton was alive.

But things have changed, the union claims. Since Walton's death in 1992, the union says many Wal-Mart workers have been disenfranchised by the company's wage policies and working conditions. It hopes to capitalize on this alleged growing wave of frustration among workers to organize the nation's largest retailer.

The UFCW in December launched the national organizing drive in Las Vegas. It ultimately will target 960,000 workers nationwide, whom it claims are paid at least 34 percent less than workers at unionized food store chains.

Michael Leonard, the UFCW's international vice president and director of strategic programs, speaking at the union's annual four-day leadership training program that began Sunday in Las Vegas, noted unions tend to enjoy a "very high visibility" in Las Vegas and that it is harder to get publicity in other areas like New York.

He said organizing activity in Las Vegas will likely be "full-blown" by this fall, but declined to disclose what resources the union will invest in the campaign.

"Labor movements aren't built on money. Never judge a union by the size of its bank account, but by their heart," he said. "We have 1.4 million members nationwide and in Canada. We can draw from these resources. But the key organizing has to be done by workers here. We'll find the dollars when people are ready to be organized."

"We're also discouraging campaigns in small departments and focusing a lot more on groups of stores. That's why it takes time for the movement to grow."

Leonard said Walton was a man who "cared about his workers and he cared about their wages, and while he was alive, the union would never have stood a chance at organizing Wal-Mart."

"But many Wal-Mart workers now aren't happy about the company. They are agitated about the workload, the low wages, the lack of dignity and the lack of a (workers') voice," he said.

Leonard said Wal-Mart, which has about 3,000 workers in Las Vegas, was also targeted for the union over companies like Kmart and Target because it ranks fifth in terms of grocery sales nationwide. The union sees discounters like Wal-Mart as serious competitors to its unionized workers at grocery chains like Albertson's, Vons, Smith's Food & Drug and Raley's.

Of 14 Wal-Mart centers in the Las Vegas area, six are discount stores, four are "Supercenters" -- which include grocery items and standard Wal-Mart department store fare -- and four are SAM'S Club warehouse membership stores. Wal-Mart created 1,380 local jobs when it opened two of the four Supercenters and the fourth SAM'S Club in January.

Jessica Moser, Wal-Mart's spokeswoman, disputed the union's charges and questioned the union's motives in trying to organize its workers.

"The UFCW tries to present itself as a social organization, but in fact it is a business and it knows that we're affecting their market share and sees our associates as a way to increase its membership and revenues."

The UFCW, which has a membership of about 8,000 members in the Las Vegas area, has a committee of about 40 members educating local workers and also has a local radio spot called Worker Voice Radio that airs Tuesdays on KLAV-AM 1230. The UFCW's website, "www.ufcw.org," gets between 80 to 100 hits a day, Leonard said.

Another website "www.walmartworkerslv.com," which Leonard said is run by Wal-Mart workers in Las Vegas, claims Wal-Mart union busters and their supporters tried to discredit the UFCW local 711 in Las Vegas and to prevent workers from making informed decisions about union representation. Leonard also accused Wal-Mart, of being the "most responsible for the underinsured, underpaid workers, and most responsible for creating conditions that aren't healthy for retail workers."

"Wal-Mart is also screwing people who supply and manufacture for them. Most of their manufacturing is done in China, where there's forced labor, prison labor and suppression of religious freedoms. That's not an American value," he charged.

But Moser disagreed.

"Four million people applied to work for Wal-Mart last year. Of those we hired, 40 percent didn't have health insurance before being employed and 58 percent said they joined for the health benefits."

She said Wal-Mart associates can get health benefits for as little as a flat rate of $8.50 every two weeks and the company is one of the few that offers part-time workers profit sharing, free counseling, scholarships, health, dental and retirement benefits.

"Even if our associates don't put anything into the 401K plan, Wal-Mart will put in a certain percent, based on company profits," she said. "Our associates also qualify for full-time benefits when they have worked 28 hours or more per week. But at most companies, you have to work 32-35 hours per week to get full-time benefits."

"And we have a catastrophic coverage plan, meaning if one of our associates or their child or spouse becomes very ill, there is no cap to that coverage," she said. "We also have special pharmacy benefits, and with the rising cost of prescriptions, this makes a difference."

Union officials said they fear Wal-Mart would drag down hourly wage standards, charging the average wage for Wal-Mart workers is $6-$7 an hour, while unionized workers earn $10-$14 an hour.

"Wal-Mart is the most profitable retailer in the world. The personal fortune of (chairman) Rob Walton is greater than that of Bill Gates. We're not talking about depriving shareholders of good returns. Wal-Mart's prices are no better than other grocery retailers, but the difference is in the wages paid," Leonard said.

But Moser disagreed.

While she acknowledged that the average union pay is higher because "the union's been in the market longer than us," she stressed Wal-Mart's Las Vegas associates' starting wages meet and sometimes exceed its union competitors' wages.

"Our cashiers' start out at $7.50 an hour, and an overnight Wal-mart stocker can start at $8.25 an hour, which exceeds the union counterpart's starting wages," she said.

Moser also cast doubts on the union's authority to deliver on its promises, citing a class action lawsuit filed Feb. 1 by more than 30 members of the UFCW Local 1096 against the Salinas, Calif., union.

The suit alleged the union has, for years, failed to protect its members' rights, wages, and benefits, and seeks $25 million in punitive damages.

Union officials declined comment on the lawsuit.

But Leonard disagreed.

"Wal-Mart doesn't have a UFCW problem. They have a worker problem. Organizing movements happen when there are serious problems on the shop floor."

Moser countered. "First, the UFCW tried to do everything they can to keep our Supercenters out of Las Vegas (through failed zoning restrictions), and to keep our associates from getting jobs at Wal-Mart, even to the extent of asking customers to sign cards promising not to shop at Wal-Mart."

"Now, the UFCW is telling our associates they care about them. It's no wonder the union leaders have a credibility problem with most of our associates," she said.