Wal-Mart Wages
I read an article in (you guessed it) The New York Times entitled Chicago Orders ‘Big Box’ Retailers to Raise Wage. The article reports that the Chicago City Council passed an ordinance requiring ‘big box’ retailers to pay a minimum wage of $10/hour with at least $3/hour of benefits by the year 2010. The article reports the details of the ordinance below:
Under the bill, minimum wages in the covered stores would rise to $9.25 in 2007 and to $10 in 2010, and be indexed to inflation after that. Benefits would have to total $1.50 an hour in 2007 and $3 in 2010.
A ‘big box’ retailer is a store with more than 90,000 square feet and gross revenues of more than $1 billion annually. Examples of ‘big box’ stores include Wal-Mart, Home Depot, Target, Sears, Lowes, Kmart, and Toys “R” Us.
While I am pleased to see policies that will constructively work toward a living wage being enacted across the country, I also think that this is only the first step. In 2010, how far will $10/hour go to provide for a family? How much will it cost to add dependents to a benefit package?
In this debate, you hear a small whisper in the background…Costco. According to the article:
In arguing that Wal-Mart and other companies can easily afford to meet the new standards, proponents of the measure pointed to Costco, which says it already pays at least $10 an hour plus benefits to starting workers around the country.
Sidenote, Costco is also a company that supports the Democratic party. In order to see how many stores contribute to political parties, check out BuyBlue.org. BuyBlue encourages people to “vote with your wallet”. I have another idea - support a living wage with your wallet. I would rather purchase bulk food and other items from Costco than Sam’s Club.
July 27th, 2006 at 8:42 pm
Sigh. A small step, but a push forward at the very least. In my hometown’s Wal Mart, it breaks my heart to see elderly workers scrambling at the registers or restocking shelves. I see them working so hard and I know they are not getting paid as well as they should be. At the very least, it is good that senior citizens are not being turned away for a job. However, when I think about the profits that Wal Mart makes annually, compared to the measely income they provide for their loyal workers, it just makes me angry to see such an injustice.
If I were reaping the benefits from a billion dollar company that i created, I would always think about the people working below me, who collectively help me to achieve my goal. Full health insurance, competitive wages, promotions, a child care center, etc. These are the rewards I would give them out of appreciation for their good work, and in turn, I would hope that my efforts create a positive environment where people WANT to work dilligently for me. My business would be a win-win situation for both myself and my employees, where we both benefit from each other equally, and I can go to bed at night assured that I did not cheat anyone out of what they rightfully deserve.
Why aren’t there more honest business people in the country? Must people resort to unethical tactics to get to the top?
July 27th, 2006 at 9:01 pm
I agree completely. I would willingly pay more for my groceries, clothing, etc. if my money was going toward a better employment environment (wages, benefits, etc.) - however, you can never ensure where your money goes and no one wants it to go line the pocket of the CEO of the company.
July 27th, 2006 at 9:35 pm
People tend to forget that if they spend their money within a sustainable model, that very same money will cycle back to them. With Walmart, that money is sucked out of the community and the cycle stops.
The Walmarts of this country are destroying any semblance of a sustainable economy in this country.
July 27th, 2006 at 10:06 pm
Buyblue.org is an excellent resource. Thanks for reminding me about it. I am always crestfallen when I discover that a brand that I support only contributes to the Republican Party.
July 27th, 2006 at 10:40 pm
Good article, but i will focus on something. Do corporations really “contribute” to political parties or do they buy them out. I’m not just referencing Costco and the dem. party but I mean everyone. The word contribution should be replaced by stock holder. In the end they own a piece of the party/company and have a say in what they do because after all they invested in them.
This is a step in the right direction and thank goodness there is at least a step. I am sure it is real hard to get things to change in any business.
July 28th, 2006 at 10:51 am
I have been concerned about the social structure in the US since my return a few years ago. I believe that the current business and financial models will result in serious social problems. FreeMarket works on enlightened self-interest. Today we only have self-interest. I believe the move to increase minimum wage is a great one. I support retailers that pay higher wages, not because they pay higher wages, but because they usually offer higher quality products.
I like your thought process. Let’s hope that others will give serious thought to the problem without tooting a Rep or Dem horn. This is a problem with very long term consequences.
July 29th, 2006 at 12:14 am
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July 29th, 2006 at 9:20 pm
Thanks for the comments. I agree that the issue of raising the minimum wage to a living wage should not be restricted to any party - Democratic, Republican, Independent, or otherwise. There are realistically many strings attached to political parties that can make a “stock holder” kind of mentality that needs to be diminished. The age old saying that you get what you pay for is indeed correct. The awareness that not only will the product be better, but the employees will be paid better, is something to be reminded of.
August 2nd, 2006 at 12:45 am
[…] Walmart Wages […]
July 11th, 2007 at 11:31 am
“According to the company, full-time hourly workers make an average of $10.51 an hour at Wal-Mart. However, the group Wake Up Wal-Mart believes that after part-time workers are factored in, the true average is less than $9.00 an hour. In contrast, Costco pays an average wage of $17.46 an hour.
In 2006, Wal-Mart had revenues of over $315 billion, and profits of about $11 billion.
Source: http://www.mondostars.com/poll/index.html?action=1&poll_id=31
The web poll and page above was asking if Walmart pays a competitive wage. On the surface I’d probably say no. But if you’ve ever been in a Walmart you know the hiring standards are not high. On a recent trip to Walmart I had difficulty finding a few specialty items, not only did I have problems finding the items, I had difficulty finding people who were willing/happy to help me. For the record I ran into three confused workers who could not help. For a few of the workers English was clearly their second language. Also at Costco you don’t see people lounging around (i.e. greeters and employees). You see people busy at work many of them working quickly. McDonalds might not hire the cream of the crop; Walmart does the same and pays them accordingly. If those who work at Walmart feel that they are worth more they should apply at Costco for a job.
That’s just my two cents on the subject… What do you think?