I guess, Harry, the shortest and sweetest reply I can give you is that many of us are interested in more than the cheapest price and just the bottom line in our choices. 

 

By the way, I think retail cannibalism refers to saturating a market area even if it means cannibalizing customer sales from one’s own nearby store.  Someone please correct me if this is wrong.  As in Wal Mart, Home Depot, Target within 5 miles of each other.  Or maybe it refers to when they close a smaller store after a supercenter is built, and the smaller property is kept vacant, a blight on the city tax rolls and a real estate nightmare.

 

Maybe the Mom & Pop shops don’t like the monopoly competition, but they are paying local taxes at a higher rate than Wal Mart does.  They use local attorneys, CPAs, advertisers, insurers, too, and because they are locals who raise their families there, they are more concerned about the long term health of their community.  For every 1 job Wal Mart creates, it displaces 3.  Isn’t that a negative?  Since Wal Mart pays minimum wages and no health benefits, don’t the tax payers pay the cost of their employees using emergency rooms and hospitals in the long run?  Isn’t that subsidizing them? 

 

I’ve read in business journals that Wal Mart has expansion plans to build smaller stores in downtowns.  They may be eyeing China, too, and are doing better in the UK than Germany, probably because of ignoring cultural issues affecting retail.  Like Bush2, maybe Wal Mart has become it’s own worst enemy.

 

I am sorry to learn your daughter’s home and family may be in jeopardy in Poway.  My sympathies.  Hope everything will be okay soon.  I lived in Scripps Ranch among all those oil-bearing eucalyptus trees imported from Australia and know how dry it is this time of year.  Regards, Karen

Harry wrote: As you might expect, I have some of disagreement with what you say. You wrote:

"other living wage issues recently, such as the current 70,000 striking in S. California"

The 70,000 striking in Southern California can hardly be called a living wage issue. They get $17.90 an hour along with health benefits -- I would think much more than most of the people get who go into their stores to shop.

The major issue seems to be the desire of the stores to hire new people at a lower rate. As long as the union can establish tenure (I think they already have it) for the veterans, this doesn't seem to be a problem.

You continued:

'due to the monopoly pricing that Wal Mart imposes with its market saturation, or retail "cannibalism".'

This translates into supplying Southern California consumers with goods at a 14% discount. I've never known any supplier of goods or services to boast proudly of how much extra he is charging his customers.

I shall add "cannibilism" to "law of the jungle" and "cut throat competition" - phrases that are used by corporations who want to charge people more of their wages for the same thing.

Also by left wingers like Chris who don't realize they are lap-dogs for the capitalists.

You said:

"grassroots resistance to the new Robber Barons "

Sounds more like shops that had a monopoly position in town being threatened by competition. The best way to measure "grassroots" is to watch an empty Walmart parking lot as everyone shops in town. That doesn't happen. Instead, the "grassroots" are walking the aisles of Walmart.

When you oppose Walmart, you are opposing the grassroots as you support a dozen or two merchants who for too long have had a monopoly. As they were without competition, it is probable, no certain, that they have been supplying their friends and neighbors with goods priced a little more than they should be.

In the UK, government watchdogs, I recall, pointed out that local people will more likely be swindled than strangers in the mom-and-pop stores. The thumb on the scale was OK for the local Mrs. Smith, but the stranger might be an inspector, so he was likely to be treated fairly.

The downtown monopoly has a lot to do with the rent. In fact, high downtown rents are the reason why WalMart gets out of town.

I must say I love your comment:

"These protestors are mom & pop, garden variety, flag-waving, tax-paying, small business-supporting voters."

They are obviously the good guys. All they want to do is stop people from freely shopping where they want to shop.

That's all.

Harry


Karen wrote: This news item ties in nicely to the NOW with Bill Moyers report on low wages at Tyson Foods and other labor issues that Arthur alerted us to yesterday via FW.  Tyson also was raided and charged with knowingly hiring illegals, and two executives plead guilty, fines were paid.  Wal Mart figured into that story, too, like so many other living wage issues recently, such as the current 70,000 striking in S. California, due to the monopoly pricing that Wal Mart imposes with its market saturation, or retail “cannibalism”.  Workers are losing living wage potential as giant retailers try to avoid becoming Wal Mart’s next victim. 

It was interesting that in the Tyson strikers story, local merchants had removed  Tyson products from their shelves in solidarity with striking neighbors, even though Tyson has long been their largest town employer. They are also fighting a Wal Mart store, afraid it would wipe out the last local merchants.  These are not counter culture rebels from so-called “liberal” places like Arcadia, California or the numerous others townships who have drafted wording in their permitting processes to limit big box retail per capita growth.  These protestors are mom & pop, garden variety, flag-waving, tax-paying, small business-supporting voters.  We are seeing a grassroots resistance to the new Robber Barons of the 21st century, not just a simple lifestyle movement.  - KWC

 

One wonders if the cleaners had to line up and sing the Walmart song, or do the Walmart salute or whatever it is that Walmart employees do.  Probably not though.  They weren't really Retail Associates, or whatever staff are called.


Ed Weick

 


The New York Times 


October 25, 2003

Cleaner at Wal-Mart Tells of Few Breaks and Low Pay

By STEVEN GREENHOUSE

 

Every night for months, Victor Zavala Jr., who was arrested on Thursday in a 21-state immigration raid, said he showed up at the Wal-Mart store in New Jersey to clean floors.

As the store's regular employees left at 11 p.m., Mr. Zavala said, they often asked him whether he ever got a night off.

Mr. Zavala, identified by federal agents as an illegal immigrant from Mexico, told the Wal-Mart workers that he and four others employed by a cleaning contractor worked at the Wal-Mart in Old Bridge every night of the year, except Christmas and New Year's Eve.

Now Mr. Zavala feels cheated, saying he worked as hard as he could pursuing the American dream, only to face an immigration hearing that could lead to deportation for himself, his wife, Eunice, and their three children, 10, 7 and 5 years old. He was one of 250 janitors employed by Wal-Mart contractors who were arrested at 60 Wal-Mart stores before dawn on Thursday.

"My family's not happy about this," said Mr. Zavala, who said he paid a "coyote" $2,000 to smuggle him into the United States three years ago. "My children do not want to leave and go back to Mexico."

A federal law enforcement official who spoke on condition of anonymity said yesterday that several current and former cleaning contractors for Wal-Mart, the nation's biggest retailer, were cooperating with the government in its investigation. On Thursday, federal officials acknowledged that they had wiretaps and recordings of conversations and meetings among Wal-Mart executives and contractors.

Federal officials said that as part of the Thursday raid, they searched the office of a middle-level manager at Wal-Mart's headquarters in Bentonville, Ark. The officials said the government believed that Wal-Mart executives knew the cleaning contractors were using illegal immigrants.

Federal officials noted that 102 illegal immigrants working for Wal-Mart cleaning contractors had been arrested in 1998 and 2001 and that 13 Wal-Mart cleaning contractors had pleaded guilty after those arrests. Those pleas remain under court seal.

Wal-Mart said yesterday that it had begun an internal investigation and would dismiss anyone in its work force who did not have proper immigration papers. Wal-Mart also told its officials to preserve any documents that might be relevant to the federal inquiry, which is being conducted by the Department of Homeland Security's division of Immigration and Customs Enforcement.

Wal-Mart officials said that the raid surprised them, and that they had no idea the company's cleaning contractors used illegal immigrants.

They acknowledged yesterday that 10 immigrants arrested on Thursday in Arizona and Kentucky were employed directly by Wal-Mart. Company officials said they had brought these workers in-house after certain stores phased out the use of the contractors for whom the immigrants had worked.

Wal-Mart officials also said the company required its contractors to hire legal workers only.

"We have seen no evidence thus far that anyone in Wal-Mart is involved in any scheme involving illegal workers," Tom Williams, a company spokesman, said.

Government officials and Walmart executives declined yesterday to name the cleaning contractors whose employees were arrested.

"These arrests are part of the Immigration and Customs Enforcement mission and part of our continuing commitment to investigate companies that are hiring individuals who are not authorized to work in the United States," said Garrison Courtney, a spokesman for the immigration agency.

Federal officials said yesterday that the leading nation of origin for the janitors caught in Thursday's raids was Mexico, with 90. The Czech Republic was second with 35, followed by Mongolia with 22, Brazil with 20. Uzbekistan, Poland, Russia, Georgia and Lithuania each had about a dozen.

Mr. Zavala, the janitor in Old Bridge, N.J., said he got his job shortly after arriving in the United States, when a neighbor asked whether he wanted work cleaning buildings. Mr. Zavala, 28, said he did not know the name of his boss.

Mr. Zavala said he believed that the Wal-Mart managers knew the janitors were illegal immigrants.

"Deep in their minds, of course the store managers knew it," he said. "The other guys from the crew didn't speak one word of English. Of course they knew it, but if you asked them, they'll say `we thought they were citizens or residents.' "

Mr. Zavala said the contractor that he and Eunice, his wife, worked for paid them $400 a week each for working 56 hours. That would come to $6.25 an hour if time and a half overtime is included for all hours worked in excess of 40.

"We don't know nothing about days off," said Mr. Zavala, whose hometown is Mexico City. "We don't know nothing about nights off, we don't know health insurance, we don't know life insurance, and we don't know anything about 401(k) plans."

He said that when he was arrested and taken to a detention center in Newark, immigration officials mocked him for taking a job that paid so little in a state where rents and living expenses are so high. He said that in his 16 months as a cleaner at Wal-Mart, he was given only two nights off.

He said he did not think that the contractor withheld taxes from his pay, raising questions about whether the contractor was making the required contributions for Social Security and unemployment insurance.

Misha Firer, an illegal immigrant from Russia, said he worked for three months last year as a cleaner at Wal-Marts in Ephrata, Pa., and Glens Falls, N.Y., working 90 consecutive days without having a day off.

Mr. Firer said that he earned $6 an hour, working the midnight-to-8 a.m. shift, washing, waxing and buffing floors. He said the chemicals were so strong that some workers had nose bleeds, sore eyes and skin irritations.

"Nobody wanted to take the job," he said. "It was a night job and it paid very little."

 

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