Where it All Started • Sam Walton was the founder of Wal-Mart. • He began with a small five and dime that was owned by a company called Butler Brothers. The one major rule the company had was that all business owners under their corporation had to buy from the Butler Brothers’s warehouse. Walton decided to cut out the middle man in this case and buy directly from the supplier which was the start of his “everyday low prices.” • He was known to lure costumers into his stores by the use of popcorn machines and ice cream vendors. • His small five and dime became the largest within a six state region. The Problem Today • Wal-Mart has about 1.4 million employees and 4, 258 stores across America and serves approximately 105 million shoppers each week. Wal-Mart made about 401 billion dollars in sales at the end of January in 2009. • Wal-Mart has been sued for forcing employees to work off the clock in 32 states, and in 2004, the large corporation had nearly 7,000 lawsuit pending against it. • There are approximately 325 vacated stores sitting in empty towns. • Wal-Mart has also admitted to taking life insurance from employees who had passed away. Wal-Mart Remains Non-Union • Management use an “open door policy” which means that employees can feel free to voice their opinions about almost anything without being judged. This makes corporate seem as if they are on the associate’s side. – • • This made employees more convinced that non-union was the way to go. Wal-Mart has a hotline that managers can call if they feel any suspicious union activity and management is alerted if a new hire has ever worked with a union. If employees seem interested in a union, management can find insignificant reasons to fire them. • A valued associate in Ohio began to show an interest in unions. She was immediately “coached” for her sick days and reprimanded for slipping on a wet floor where she spilled water. She was ridiculed in front of other coworkers and received no remorse when she asked off to visit a dying relative. Her boss replied that her “sister would die without her just as well.” She was later fired for an excessive amount of pink slips that she was unaware had accumulated. Health Care Hurts Employees and Tax Payers • At Wal-Mart, employees can receive health care after six months if they work full-time and after two years if they work part-time. Part-time associates do not get insurance to cover a spouse. If an associate is eligible to cover a spouse, a hundred dollar fee is tacked on. • In its health care plan Wal-Mart does not cover contraceptives, childhood and flu vaccines, dental checkups, and conditions that existed before employment. • Wal-Mart’s poor health insurance causes associates to look toward welfare and state supported programs for their families. This causes more names on the welfare list and more taxes for the city. • In California, Proposition 72 was placed on the ballot in 2004. This bill would mandate businesses with over 200 associates to cover 80 percent of health care costs. Many opposed, including Wal-Mart. The large company put half a million dollars in to help decline the proposition. Propaganda made the offer seem like it was pro-Wal-Mart and publicity of the bill began to decline. Employees are Treated Unfairly • At Wal-Mart, there is a punitive point system when employees call in sick. This means that if someone calls in, they receive a point which does not go away until 6 months from the date which they called in. Associates are allowed 6 points and upon receiving the 7th point, they are terminated. • This makes employees come in sick for fear of being punished with a point. Coming in sick dangers customers in the store and creates more diseases being spread. • This also applies to calling in for aiding sick family members. An employee received a call from their child's school in September 2009 because their child was running a high fever of 103 F. The associate received a point for leaving despite the fact that she had already worked four hours. • Employees have also been forced to work off the clock, skip breaks, and miss meals for fear of being punished by management. Solution •Educate the public: •Let them know where their money is going •Let them know about Wal-Mart’s unfair policies •Let them know how it directly affect them, even if they don’t shop at Wal-Mart