Recent Developments in Union
Organizing
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“In the 1970s, General Motors was the nation’s largest
corporate employer, and thanks to its contracts with the
UAW, it not only set the standards, but it raised the standards
for all workers. Wal-Mart is doing the exact opposite.
Nowadays it is the nation’s largest corporate employer, and it
is lowering standards for everyone.”
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Organizing director for UFCW, quoted in the New York Times, 11/8/02
UFCW ramping up organizing at Wal-Mart, after
five-year lull
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Since February 2009, ~60 organizers have been
dispatched to 100+ stores in 15 states
 One Ee in Glendale IL store reports that since
February five or six meetings attended by mngrs from
corporate office have been held to discuss unionization
 Wall Street Journal, 4/17/09
Recent Developments in Union
Organizing

Wal-Mart had won all but one of seven union votes in U.S. (as of
10/02)
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One U win was butcher’s dept in TX store, which was disbanded two
weeks after election in 2000
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Co announced plans to phase out butchers and use prepackaged meat in
180 stores, said timing of decision was a coincidence
When Wal-Mart acquired Woolworth’s operations in Canada, it bought
120 stores, but not the seven that were unionized
 Wal-Mart announced in February 2005 plans to close Quebec store
whose workers were seeking to become first ever to win U contract w/
co (U achieved certification through card-check under Quebec law)
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Co said store was losing money and demands from U negotiators would
make it impossible for location to become profitable
UFCW had filed request w/ Minister of Labour for binding arbitration
following bargaining impasse
In October 2008 Wal-Mart announced closing of Tire&Lube Express in
Quebec store, after workers voted to unionize and arbitrator awarded wage
increase
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Co in arbitration w/ UFCW Canada to draw up first contract for ees at another Quebec store
In 1997, Ontario’s Labor Board imposed U certification on Ontario store
after it found Co had intimidated ees

In 2000 ees voted to decertify
 Source: Wall Street Journal, 2/10/05; Montreal Gazette, 10/17/08
Recent Developments in Union
Organizing

Wal-Mart EVP of People: “Where
associates feel free to communicate
openly with their management, why would
they need a third party to represent
them?”
gives managers 56-page guide, “The
Manager’s Toolbox to Remaining Union Free”
 Co

“It’s important for you to be constantly alert for
efforts by a union to organize your associates”
Recent Developments in Union
Organizing

Wal-Mart faces first serious unionization threat since
founding in 1962
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Pushing into heavily unionized supermarket industry, as well
as into bigger cities
UFCW had targeted stores in Michigan, Ohio, Indiana, and
Kentucky, organizing activity in at least 90 stores (as of 11/02)

UFCW faced demands for benefit cuts from Kroger and Safeway
(whose labor costs at least 20% higher than Wal-Mart’s)
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In 2003, 60,000 Southern California grocery store ees went on strike
or were locked out for more than four months
Today, Wal-Mart operates over 1,400 supercenters, is nation’s
largest grocer (19% market share), third-largest pharmacy (16%
share)
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Co plans to open 1,000 more supercenters in U.S. over next five
years (estimated shares of 35% of food sales, 25% drugstore)
13,000 traditional American supermarkets have closed since 1992
Predicted that for every new supercenter Wal-Mart opens, two
supermarkets will close
Recent Developments in Union
Organizing

Wal-Mart says its average hourly pay for FT ees is
$9.68/hr
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UFCW counters that it’s only $8.23/hr (based on independent
statistical analysis)
BLS estimates average hourly wage for all non-supervisory retail
ees is $12.34

Wal-Mart spokesman says BLS data inflated by overtime, and that
Wal-Mart’s pay scale is competitive
 Source: CNNMoney, 7/27/05
Recent Developments in Union
Organizing

NLRB has filed more than 40 complaints
against Wal-Mart
 Charges
include improperly firing union
supporters, intimidating workers, threatening
to deny bonuses if workers unionized
 Board found illegal practices in 10 cases, 8
cases were settled, remainder pending (as of
11/02)
Recent Developments in Union
Organizing

Legal union avoidance tactics also have impact

Las Vegas Sam’s Club held mandatory Ee meetings every week to
express anti-U views
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Former Wal-Mart manager, now UFCW organizer, reports
surveillance cameras “sprouted” at Scottsburg, IN store (N of
Louisville) after he started talking to workers there
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“You can speak for yourself” (Some ees started wearing “I can speak for
myself” buttons)
“The union only wants your money”
Co says the 15 cameras installed there “have nothing to do with union
activity”
Other former managers say that when they telephoned Co hot line
to report U literature was being distributed in their stores, LR
specialists were flown in on Co jet that afternoon
Other complicating factors include turnover, which may be 100%
annually at some stores
 Source: Business Week, 10/28/02; New York Times, 11/8/02; Business
Week, 10/6/03
Recent Development in Union
Organizing
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Organized labor turning to ‘corporate campaign’ tactics
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In August 2005, ‘Wake-Up Wal-Mart’ (organized by UFCW,
backed by teachers’ unions) called for Back-to-School boycott of
Wal-Mart stores
SEIU has WalmartWatch (supported by groups such as Sierra
Club and Common Cause)
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“The purpose is to change Wal-Mart’s business model – a business
model that rewards shareholders and executives and doesn’t
reward workers” (Andrew Stern)
Number of states have reported that Wal-Mart tops list of ers
whose ees receive taxpayer-subsidized Medicaid coverage
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Co says its workers go on public assistance at about same rate as
other retailers
 Source: Wall Street Journal, 8/10/05
Recent Developments in Union
Organizing
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Cintas
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Organizing drive underway by UNITE (Union of Needletrades,
Industrial, and Textile Employees)
Co, based in Cincinnati w/350 plants nationwide, is largest
uniform rental Co
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Workers average <$9/hr, plants unlikely to move offshore
Co reportedly spends hundreds of thousands of dollars on labor
consultants who tell Ees unions will sow discord and only want
their dues money
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Co treasurer: “We believe we have a special culture here that would
be jeopardized by the kind of hostile actions that characterize the
union’s approach to dealing with the company”
U has asked Teamsters to pressure UPS to stop using Cintas
uniforms until Cintas stops fighting unionization, has staged
demonstrations outside Starbucks shops to press that Co to
stop using Cintas to clean its mats and towels
U also seeking Cintas agreement to “card check” neutrality
 Source: New York Times, 5/31/03
Recent Developments in Union
Organizing

Dana Corp and UAW
 Co
is sixth-largest auto part supplier in NA, some 200
U.S. plants

25% of workforce affiliated w/one of 10 different unions
 Co
agreed to recognize union-representation rights at
plants where majority of workers support formation of
U
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Similar agreements in place w/other auto parts Cos – Lear
and Johnson Controls
 Source: Wall Street Journal, 8/14/03