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April 15, 2005

Always Low Wages. Always.

Saying Wal-Mart is antiunion is slightly less shocking than calling Tom DeLay unethical, or noting that I have an elbow*. Nothing could be better known. But I think most are confused, like I was for a long time, over how Wal-Mart can actually stop the unions. So one day, I called up an organizer buddy of mine and asked. The answer was so simple that it barely qualified as an answer at all. If workers unionize, or threaten to unionize, or feint at unionizing, or think about unionizing, or see a union hall on their way to work one day, Wal-Mart shuts down the store.

Oh.

Nevertheless. it seemed a bit odd to me. Pretty drastic measure, knocking down a whole store because they formed a union, can they really do that? Indeedy-do, they can and they have. In fact, they just did it in Canada. The workers in Jonquiere, Quebec, signed the cards creating a union and, immediately thereafter, everyone lost their jobs and the town lost its Wal-Mart. Now the city's got deep divisions between those who wanted the union and those who blame the union-wanters for destroying their jobs, Quebec's other Wal-Marts -- which are a focal point for the union movement there -- are rejecting the organizers because some job is better than no job, and every Wal-Mart manager can, if their employees try to organize, sit them down in a coercive meeting and go through the sad case of Jonquiere, Quebec, where the union would have just been too expensive and Wal-Mart simply had to close the store.

And they don't want that, do they?

That's the beauty of the Wal-Mart strategy. They don't have to stop employees from organizing. Make an example out of a few stores and employees will vote down the unions on their own, which gives Wal-Mart more ammo to paint future organizers as unwanted, alien influences disrupting the loving societies that are their stores. Well-played, Walton, well-played. And following Charles Morris's strategy (which Nathan Newman likes) of simply organizing individual sets of workers (meaning you could unionize 30% of a Wal-Mart and the store would have to bargain with them, you don't need a majority of the workforce) seems to play into their hands. Then they can just fire individual employees entering the union** and make an even clearer example of what befalls those who want a pay raise.

After all, it's much easier to fire an employee than close a store, and I have a feeling no manager will forget to mention that to workers sporting that starry-gaze that comes only from a vision of labor standards. Further, why should Wal-Mart negotiate with a 30% union? Why not ignore all their demands and let them quit? It's not as if Wal-mart enters many tight labor markets or requires a specific skill set. Turnover is life for them, and so is foiling unions -- seems like Morris's strategy would just let Wal-mart indulge its hobbies.

* Actually, I have two elbows!
** Technically, they can't do that. They'll get fined. And if you want to know why that doesn't matter, read this.

April 15, 2005 in Big Business, Labor | Permalink

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Comments

Yeah, but they can't shut down every store. If they had to repeat the one-time thing they did in Quebec 10 or 20 times, they might start to change their tune. I don't see how that wouldn't be an effective union strategy.

Posted by: Serx | Apr 15, 2005 12:48:57 PM

But that's just the thing -- by doing it in Quebec, they don't have to do it 10, 20 or 30 times. After all, which workers want to be the ones who lose their jobs during those 10, 20, 30 trial runs? It's a fallacy of composition -- the workers need to approve the union, if enough workers approve the union they'll have a union, but in between a huge number of them will find themselves unemployed. We're at the inbetween stage.

Posted by: Ezra | Apr 15, 2005 12:58:05 PM

So I guess what's really needed is simultaneous organization of employees of all (or many) stores, too many for Wal*Mart to simply shut down.

Posted by: Aron | Apr 15, 2005 1:13:47 PM

NPR just ran a story on the Maryland proposal that would have WalMart pay health care costs equal to 8% of their payroll. WalMart objects even as outfits like Giant Food are already paying 22%. I may be a free marketer but it seems WalMart is playing free rider here.

Posted by: pgl | Apr 15, 2005 1:20:09 PM

pgl -- word. Plus, the Maryland law would cost Wal-Mart about $8 million, far, far less than the piddling fine ($13 million or so) they paid for hiring illegals to stock their shelves.

Posted by: Brad Plumer | Apr 15, 2005 1:38:59 PM

I'm not sure what to do with a rogue elephant like Walmart, especially when it is already deeply into the "China" shop. I like the Maryland idea, but I suspect 8% won't buy good insurance.

With BushCo willing to ignore or feed the rogue elephant in the US, it looks to me like the multi-store organizing approach is the best idea, perhaps doing one metro area at a time (all of Portland and then all of Seattle, etc.).
Walmart really can't afford to shut all the stores in a metro area.

The unions better do something quick though, before BushCo eliminates the 'card sign-up' option, since 'elections' are easily rigged by employer pressure.

If corporations refuse to be reasonable citizens in regard to employment/wage practices, then the Maryland approach may be the best answer for those blue states that can pass laws to put leg chains on the rogue elephant.

Posted by: JimPortlandOR | Apr 15, 2005 1:55:40 PM

Montana's got a similar proposal going. I wrote on it here.

Posted by: Ezra | Apr 15, 2005 2:18:52 PM

Except one thing Ezra. Something you tend to forget.

If one union is allowed into one Wal-mart, it becomes a virus that spreads throughout the Wal-Mart industry.

Just as if they shut a store down for an attempt at unionizing, if they allow one to form in one store, it spreads to others like wildfire.

So rather than have the whole Wal-Mart conglomerate of employees look at one successful unionization, forcing Wal-Mart to pay for raising the level of its employees to slightly above indentured servitude, they take the hit on a store.

One store = say a million bucks.
giving millions health insurance = couple Hundred million bucks.

Who's Wal-Mart is it? My Wal-Mart WHOOOP!

Priceless

Posted by: media in trouble | Apr 15, 2005 3:59:50 PM

MIT -- I don't forget that. That's exactly why they won't let a WalMart in...

And one story, by the way, is a hit of far more than a million.

Posted by: Ezra | Apr 15, 2005 4:03:13 PM

How does Target stack up? I may have an interview with them next week.

Posted by: fiat lux | Apr 15, 2005 8:34:47 PM

What ever happened to the AFL-CIO, etc.? Does the AFL-CIO have enough sway in some city to shutdown Walmart's other stores when they threaten to shut one down?

That is, Jonquiere members of ANY union should boycott Walmart. We should all boycott Walmart, but all unions should get the message out: any city in which Walmart implements this policy gets a union boycott. And union members should lobby their other citizens to boycott one or two other Walmart stores to hurt more of Walmart and to encourage shopping at the Costco's, Safeways, Food Cities, etc. And picket those stores.

And I'm assuming Walmart's truckers are company employed and not unionized, (but maybe not?) And what about their key vendors that distribute to Walmart? Unionized truckers or no?

This is should be acted upon as a threat to ALL unions, not just Walmart.

Posted by: jerry | Apr 19, 2005 9:44:19 AM

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Posted by: peter.w | Sep 15, 2007 7:49:05 AM

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