Friday, December 02, 2005

What Is So Bad About Wal-Mart.

Unions hate Wal-Mart, of course, because the Wal-Mart workforce isn't unionized. The people who work at Wal-Mart actually believe that they're working for Wal-Mart. They aren't operating under an allusion that they're working for a union! Since this is an intolerable situation for the unions, Wal-Mart must be demonized!

One of the other arguments against Wal-Mart is how they treat their employees. Now as I have mentioned before I use to work at Wal-Mart. In fact I worked there for 3 years. I never had a problem with the way I was treated. The wages was competitive and yes it is true that the health insurance cost more than some union stores like Target but Wal-Mart did not put a cap on how much they would pay. This made the higher cost worth it to me. Also Wal-Mart had a 401K, a profit sharing program and a stock buying option where they actually match 50 cents on every dollar you buy in stock. When I started working there Wal-Mart stock was worth 19.00 a share. Since then my Wal-Mart stock, which I still own, has split twice and is worth roughly $47 a share. Believe it or not, I have actually seen people retire from Wal-Mart as millionaires.

Of course, other retailers aren't happy with Wal-Mart either. Let’s face it; Wal-Mart is a clear low-price leader. For other businesses to compete they have to either offer higher levels of service, better merchandise or lower prices, all of which would affect the bottom line. So, if you can't compete you must demonize the competition. These businesses know that if they can do anything to force Wal-Mart to increase its prices, like accepting a unionized workforce or adopting expanded worker benefits, it will help to level the competitive playing field.

Recently a "documentary" was released by Wal-Mart opponents which purported to show the negative impact that Wal-Mart is having on our country. The documentary was full of distortions and lies. In one particular instance a hardware store that was going under was shown. The blame for this store going under was placed squarely on the new Wal-Mart in town. The trouble here was that the hardware store was in the process of closing long before the arrival of Wal-Mart and the owner of that store admitted that Wal-Mart had nothing to do with the closing. So the opponents of Wal-Mart lied in Michael Moore fashion to get their point across. Surprise, surprise, surprise.

So, has the campaign of demonization been working? It would seem so. A survey done by some anti-Wal-Mart group known as has found that 56% of Americans say that Wal-Mart is bad for America. Amazing.

If the unions and Wal-Mart competitors succeed in forcing Wal-Mart to increase its operating costs it will constitute a wage cut for every single American who relies on Wal-Mart for huge savings on the items they need in their daily lives.

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