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Resolutions Be it resolved that:

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Wal-Mart wages also reflects the cost of living in particular regions. ... Global Insight found that Wal-Mart's presence holds down prices of consumer ... – PowerPoint PPT presentation

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Title: Resolutions Be it resolved that:


1
ResolutionsBe it resolved that
  • The company pays fair wages
    to employees and fair prices to suppliers of
    goods.

2
PRO
3
Fair Wages
  • National minimum wage is only 5.15 per hour
    (www.dol.gov).
  • The national average wage for full-time Wal-Mart
    employees is 10.11/hour (www.walmartfacts.com).
  • Wal-Mart wages also reflects the cost of living
    in particular regions.
  • Higher wages in urban areas where there are
    greater expenses
  • Wages alone prove that Wal-Mart provides fair
    wages

4
Wal-Mart Healthcare and Benefits
  • Wal-Mart offers a medical plan
  • Pays for 2/3 of employees benefits.
  • Wal-Mart offers an educational opportunities
    program
  • Reimbursement for completion of GED.
  • Wal-Mart offers a family care program.
  • Discounted child care and free professional
    counseling.

5
Jobs Market
  • Wal-Marts provide jobs for many
  • New and more Wal-Marts more jobs for those
    communities

6
Jobs for Everyone
  • Leading employer of Hispanic Americans, with more
    than 139,000 Hispanic associates
  • Leading employers of African Americans, with more
    than 208,000 African-American associates.

7
Also
  • More than 220,000 of their associates are 55 or
    older.  They employ more than 775,000 women.

Also new jobs for suppliers from other parts of
the world.
8
OVERSEAS
  • Wal-Mart holds a positive reputation among their
    suppliers here in the United States and overseas.
    A Wal-Mart's study found that Wal-Mart has a
    largely positive effect on Americans' lives, and
    that its low prices give consumers more buying
    power by holding down prices throughout the
    economy.

9
  • Global Insight found that Wal-Mart's presence
    holds down prices of consumer goods in the U.S.
    by 3.1 percent. The effect is both direct,
    Wal-Mart's own low prices, and indirect,
    suppliers and rivals reduce their prices to sell
    to or compete with Wal-Mart. The report says
    that on average Americans that shopped at Wal-
    Mart saved 118 billion in 2004, or 402 per
    person, thanks to Wal-Mart.

10
  • The reason we are able to benefit from the low
    prices of Wal-Mart is largely because of the
    overseas suppliers. It costs less for certain
    goods to be manufactured overseas and that allows
    for the lower prices here at home. We are able
    to benefit from that directly.

11
  • To date, we have cooperated with about 20,000
    suppliers in China. We ranked No.1 Good
    Credibility and Accurate and Prompt Payment for
    several years in a row by China Chain Store
    Franchise Association and the Department of
    Enterprise Consultation Service of International
    Business Machine China Co. Ltd. (formerly
    Pricewater House Coopers Co. Ltd.). We always
    treat our suppliers as partners and grow with
    them.
  • Reference almart/index.htm

12
Wal-Mart will continue to expand investment and
cooperation in China and contribute to the
economic development through the following
aspectsIncrease procurement and support export
of Chinese products to other countries in the
worldIncrease investment in China, especially
in the west parts of China, to response to the
governmental policy of "Developing the West"
Create more employment opportunities and
generate more taxes to benefit local
economyWork closely with consumer goods
manufacturers, share our information and
resources, and support manufacturing enterprises
to improve production, technology and management
skillsIntroduce our advanced retailing
techniques and experience to promote the Chinese
retail industry standard and development.  
13
  • You can see Wal-Mart is greatly concerned about
    their suppliers and the relationship and standing
    that they hold. They continually strive to keep
    that relationship/partnership positive.

14
CON
15
Wal-Mart Wages
  • A considerable number of employees earn far below
    the poverty line.
  • In 2001, a sales associate earned an average of
    8.23 an hour, earning 13,861 yearly. The
    poverty line for a family of 3 in 2001 was
    14,630.
  • Cashiers earn approximately 7.92 per hour at 29
    hours a week. This brings the annual wages to
    11,948. (2003)
  • Wal-Mart associates dont earn enough to support
    a family In 1999, the average budget for a
    two-person family was 23,705as compared to an
    employees earned average of about 13,861.
  • Wal-Mart can afford a wage increase for its
    employees a dollar an hour increase in pay could
    be provided by raising prices a half a penny per
    dollarthis would result in about 1,800 more a
    year for an employee.
  • Community Impactlower wages means less money
    going into the community and contributing to
    other wage and income decline.
  • According to a 2003 National Labor Committee
    report a Honduran worker sews clothing for
    Wal-Mart at a rate of 43 cents per hour. After
    spending money on daily meals and transportation
    to work, the average worker is left with around
    80 cents a day to pay for rent, bills, childcare,
    school costs, medicines, emergencies, and other
    expenses.

Kristen Carty
16
Unpaid Overtime
  • Wal-Mart forces employees to work off-the-clock
  • In their 2005 Annual Report, Wal-Mart faced 44
    wage and hour lawsuits
  • Wal-Mart was recently ordered by courts to pay up
    to 120 workers in New Mexico, and 400 workers in
    Oregon for violating wage and hour laws.
  • Wal-Mart violates the Fair Labor Standards Act
    One week of time records from 25,000 employees
    in July 2000 found 1,371 instances of minors
    working too late, during school hours, or for too
    many hours in a day.
  • There were 60,767 missed breaks and 15,705 lost
    meal times. Steven Greenhouse, Suits Say
    Wal-Mart Forces Workers to Toil Off the Clock,
    New York Times, A1, 6/25/02
  • In 2002, a federal jury found that Wal-Mart
    employees in Oregon were forced to work overtime
    without pay. 83 of these workers were entitled
    to back pay, and lawsuits just like these are
    pending in 28 states. (christianitytoday.com)

Kristen Carty
17
Unions
  • Across the country, workers have launched a
    massive drive to organize a union at Wal-Mart,
    demanding better wages and working conditions.
  • Employees at more than 100 stores in 25 states
    are currently trying to unionize the company.
  • Wal-Mart has responded to the union drive by
    trying to stop workers from organizing --
    sometimes in violation of federal labor law.
  • In 10 separate cases, the National Labor
    Relations Board has ruled that Wal-Mart
    repeatedly broke the law by interrogating
    workers, confiscating union literature, and
    firing union supporters. (www.motherjones.com)

Kristen Carty
18
Health Care Benefits
  • Wal-Marts Health Care Plan Fails to Cover Over
    600,000 Employees
  • Wal-Mart reports that its health insurance only
    covers 48 of their employees. Wal-Mart has
    approximately 1.3 million US employees.
  • Part-timersanybody below 34 hours a week must
    wait 2 years before they can enroll. Moreover,
    part-time employees are ineligible for family
    health care coverage. Full-time hourly employees
    must wait 180 days (approximately 6 months)
    before being able to enroll in Wal-Marts health
    insurance plan. Managers have no waiting period.
    (Wal-Mart 2005 Associate Guide)

Holly . Phillips
19
  • Despite 10 billion in profits, President and CEO
    Lee Scott said, "In some of our states, the
    public program may actually be a better value -
    with relatively high income limits to qualify,
    and low premiums." (Transcript Lee Scott Speech
    4/5/05)
  • In 2003, Wal-Mart spent 1.4 billion on its
    health insurance. This amounts to an employer
    contribution of around only 0.75 an hour per
    employee. This accounts for approximately a
    half-percent of Wal-Mart's 259 billion in sales
    in 2003. (Wal-Mart 5500 Filings, Wal-Mart Annual
    Report).

Holly Phillips
20
Non-Health Care benefits
  • Wal-Mart sponsors two retirement plans a profit
    sharing plan and 401(k) plan neither of which
    guarantee workers a fixed monthly pension
    benefit.
  • Wal-Mart has shifted risks to employees by
    concentrating investment in its own stock.
    Wal-Mart fails to provide a secure retirement
    benefit for its employees.
  • From January 2000 to January 2005, the average
    adjusted share price of Wal-Marts stock lost
    more than a fifth of its value.,
  • Wal-Mart's retirement plans are Enron-like -- in
    2003, 67 of their combined assets were invested
    in Wal-Mart stock.
  • Wal-Mart has stated that it has contributed
    around 4 percent of its earnings to its combined
    profit sharing and 401(k) accounts. For 2003,
    this would come out to a 302 a year contribution
    per employee.

Holly Phillips
21
JOBS MARKET
  • Wal-Mart taking other jobs and business
  • Every Wal-Mart opened it creates 150 to 350 new
    jobs, but puts out 53 to 253 existing jobs, for a
    net gain of 97 new jobs
  • But, new employees are dealing with decrease in
    wage with few benefits
  • Suppliers of goods are loosing employees
  • Suppliers of goods are loosing business (moving
    to China)
  • Reference Abigail, Goldman, Cleeland, Nancy.
    (2003). Wal-Mart Effect An Empire Built on
    Bargains Remakes the Working World. Los Angeles
    Times, A.1.

Gaby Millan
22
Jobs/Suppliers of Goods
  • Suppliers are not gaining anything from Wal-Mart
    being the number one retailer
  • American consumers are the reason why Wal-Mart
    has its power because they are demanding and
    Wal-Mart is supplying
  • Suppliers have no choice but to supply to
    Wal-Mart due to being 1 retail store or else
    they lose their business as well, Who else are
    they going to sell to?
  • We American consumers are responsible for the
    crisis in wages and lost of well managed
    businesses that existed before Wal-Mart
  • Reference Smith, Hedrick. (Producer), Young,
    Rick. (Director). (2004). Is Wal-Mart good for
    America? Motion picture. Alexandria, Va. PBS
    video.

Gaby Millan
23
Wal-Mart job opportunities come with
problems..SEX DISCRIMINATION
Reference http//www.cmht.com/pdfs/cwwalmart3.pdf
Gaby Millan
24
You still dont believe it
Reference Reference http//www.cmht.com/pdfs/cww
almart3.pdf
Gaby Millan
25
Wal-Mart U.S. Store SaturationProblem is only
rising
Reference http//www.windwhip.net/walmart/walmar
t_store_saturation_US.gif
Gaby Millan
26
Overseas
  • Wal-Mart co-determines the price of a product
    from a company.
  • Rubbermaid, Levi Strauss, General Electric,
    Masterlock, and Dial Soap
  • More than 1 million manufacturing jobs have been
    lost since 2000.

Reference Freeman, R. , Tichnor, A.  (2003,
November 14).  Wal-Mart is Not a Business, ts
an Economic Disease Electronic version. 
Executive Intelligence  Review.
Amanda Camp
27
INQUISITORS
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