New York City’s Public Advocate, Bill de Blasio, and the Coalition for Accountability in Political Spending (CAPS) have put together a nifty online chart called 6 Degrees of Walmart. It’s actually more than a chart – think of it as a kind of star finder that allows the user to locate eight constellations of alleged corporate malfeasance and consumer abuse committed by the retail giant. Click on its Gun icon and you’ll find out how Walmart, through its support of the American Legislative Exchange Council (ALEC), backs Stand Your Ground laws. Click the Dollar sign and you’ll learn how Walmart colludes with the Business Roundtable and others to protect corporate tax subsidies.
(Please note: The above image is not interactive; to interact, go to the 6 Degrees of Walmart site.)
There’s also an explanation of how Walmart tries to burnish its environmental and corporate responsibility cred through its “sustainability program”
This week the Los Angeles County Federation of Labor sent letters to every elected official in L.A. County (including Congress members), urging them to return all campaign contributions they may have received from Walmart – and to refuse future donations from the retail giant. The letter, which is signed by a broad spectrum of union leaders, juxtaposes Walmart’s alleged bribery scheme in Mexico with L.A. City Hall’s quick approval of the corporation’s permits for a new store in Chinatown. (The letter’s text appears below.)
“It doesn’t take campaign finance reform,” the signatories say, “to prevent Walmart from wrapping its tentacles around our political system in L.A. County.”
» Read more about: Labor to Electeds: Return Walmart Money! »
The California State Teachers’ Retirement System (CalSTRS) has filed a lawsuit against current and former members of Walmart’s board of directors, and other company officers, charging them with gross violation of fiduciary duty in connection with the company’s Mexican bribery scandal. That scandal, extensively examined by a recent New York Times feature, revealed a corporation so eager to expand its Mexican operations that it ignored findings by its own investigators sent to look into the allegations.
CalSTRS’ move takes the form of a derivative-action suit – a suit nominally brought on behalf of Walmart against individuals whose actions damage the retail giant and potentially, investors such as CalSTRS.
CalSTRS is the second largest public pension fund in the United States and holds more than 5.3 million shares of Wal-Mart, valued at $313.5 million, accounting for 0.41 percent of CalSTRS global equities portfolio.
» Read more about: Teachers’ Fund Lawyers-Up Against Walmart Brass »
If you haven’t checked this out yet, you need to. Now.
According to the New York Times, Walmart fueled its rapid expansion in Mexico with millions in bribes paid to get building permits and land use approvals through quickly. The story is based on a whistleblower, who told Walmart leadership about the issue, which they confirmed was very likely true before allegedly sweeping the whole thing under a rug. The Washington Post reports that the Department of Justice is investigating.
From an L.A. perspective, the money quote is here: “In an interview with the Times, Mr. Cicero said Mr. Castro-Wright had encouraged the payments for a specific strategic purpose. The idea, he said, was to build hundreds of new stores so fast that competitors would not have time to react. Bribes, he explained, accelerated growth. They got zoning maps changed.
» Read more about: WebHot: Walmart Bribery Scandal Explodes »
Frying Pan News recently reported on the curious circumstance of Walmart obtaining building permits for its planned L.A. Chinatown store the very day before a critical Los Angeles City Council vote against the store. The permits, seemingly issued at the 11th hour, trumped a council measure that would have created big obstacles for the World’s Largest Retailer’s plans in Chinatown.
Community groups have called for additional review of these permits; the appeal will take at least a few months.
So while we await the outcome, break out your calculators or Quicken, and let’s do some math to figure out just what kind of job quality Sam Walton’s multinational corporation will bring to Chinatown.
Let’s go to Walmart’s Web site and scroll down to its Press Room tab: The average wage for regular, full-time hourly associates in California is purported to be $12.74 per hour.
Every time I drive down Sunset Boulevard toward Chinatown, I get really mad. And it’s not only because Walmart wants to move into this neighborhood without extending the most basic community outreach. It’s because of those monstrous, faux-Italian Renaissance apartment buildings that take up blocks of space on what should be Chinatown’s Gateway. Those ugly looking bunkers house hundreds of market-rate apartment dwellers and are called Orsini I, II and III. They are owned by developer Geoffrey Palmer, and the story of how they were allowed to be built is a familiar one in Los Angeles.
A wealthy developer bought some land and wanted to build what he wanted to build. City officials were bullied into believing that there was nothing they could do about it. When Palmer managed to illegally bulldoze Bunker Hill’s last remaining Victorian cottage, the city sued. Palmer counter-sued. The city settled for a compromise where the developer promised to create a project that involved the community,
It was quite a sucker punch Walmart landed against the community last week in the über-retailer’s fight to open a 33,000-square-foot store in L.A.’s Chinatown. The shot sneaked in, quick, low and hard–but ultimately didn’t end the match.
The scene last week: Los Angeles City Council chambers in City Hall, minutes before a unanimous March 23 vote on an emergency motion to temporarily ban chain stores (such as Walmart) from opening in the historic Chinatown neighborhood.
Suddenly, a startling announcement by a city bureaucrat—Walmart has obtained the permits needed to move forward in Chinatown—okayed only the day before the critical City Council vote.
The head of L.A.’s Department of Building and Safety himself, Robert R. “Bud” Ovrom, was there to deliver the news and further clarify the situation—namely, that the proposed ban would not interfere with the World’s Largest Retailer’s Chinatown plans.
» Read more about: Chinatown Fight's Still On: Groups Appeal Walmart Permits »
Now that we know corporations are people, it may be time to wonder: Is it possible that corporations have feelings?
Does Walmart, Corporate Person, feel bad as communities reject its plans to move in next door?
If so, the world’s largest retailer is bravely hiding its hurt as it marches, head held high, into Los Angeles’ Chinatown. Community opposition erupted a couple of weeks ago as soon as word got out that Walmart planned a store at Chavez and Grand, but Walmart hasn’t flinched publicly. (Queries to Walmart for this post were not answered by publication time.*)
*Update: Steven V. Restivo Sr., Walmart’s Director of Community Affairs, later responded with this message:
“Now that our Walmart Neighborhood Market has received all necessary approvals, we look forward to serving downtown customers soon. We appreciate all the community support to date and will continue to engage with residents and businesses in the area to talk about the jobs,
» Read more about: Walmart: No Friend to Local Business, Studies Show »
You may have already heard that uber-retailer Walmart plans to open a 33,000 square-foot store in L.A.’s Chinatown.
Last week opponents of Walmart’s Chinatown store gathered at Sixth and Park View in MacArthur Park to listen to Walmart “associates”—the retailer’s preferred term for its employees—talk about their need for public assistance to make ends meet.
If you know L.A., you know MacArthur Park is nowhere near Chinatown. But it is across the street from a California Department of Public Social Services (DPSS) building—a place you’d go to apply for social services such as welfare and health care— for support you might need if you were employed at a poverty-wage job.
Support you might need if you work at Walmart.
There have been scores of news stories over the years about Walmart and the low job standards that rendered much of its workforce eligible for Medicaid.
Happy Birthday, Walmart! You great big mega-marketing rascal–you turn 50 this week. You’ve come such a long way from Roger, Arkansas, the tiny town at the foot of the Ozarks where you took your first wobbly steps.
Now you’re an international star! The planet’s biggest private-sector employer, with 2.2 million “associates” throughout the world—we usually call ‘em employees, but whatever– 1.4 million in the United States. Creator of history’s most efficient global supply chain, you call the shots on production, wage and workplace standards around the world—the Walmart business model ruthlessly undercut those everywhere. Plus you have shriveled and destroyed small business communities in towns across the United States.
Star power, dudes.
Now you are here in Los Angeles celebrating the big Five Oh with a new acquisition.
It’s tasteful, not large and gaudy, like your typical 200,000 square foot megastore.
» Read more about: Grand Illusion: Walmart's Birthday "Gift" to Chinatown »
“James, would you mind driving me to Wal-Mart?”
Ugh.
My mother-in-law asked me this question on a day when my wife was at work and I was desperately trying to get some writing accomplished. I knew it was going to be a tough week to entertain, long before Gerry arrived — a clash of union meetings, picketing and writing classes at Bergamot Station in Santa Monica.
I was typing at the computer in our small, one-bedroom apartment when she posed the question to me. I tried not to overreact, but I’m sure my eyebrows constricted tighter than I had intended.
“Wal-Mart?” I replied. “You want me to drive you to . . . Wal-Mart?”
She nodded. “I’d like to go the garden center and pick up some things.”
I didn’t want to drive to Wal-Mart, but when it came down to it I decided I would rather be on the wrong side of my union than on the wrong side of my mother-in-law. » Read more about: My Mother-in-Law’s Wal-Mart Moment »
(A somewhat longer version of this post by Michele Simon appeared January 17 on Food Safety News. Reposted here with author’s permission.)
Having saturated the rural landscape, shuttering local stores in small town America along the way, now, in the wake of stagnant sales and increased competition, Walmart desperately needs to expand into urban markets.
And what better urban market than one full of eight million people? While the big box retailer is eager to enter the Big Apple, challenges loom large. Given the negative reputation Walmart has earned for being hostile to workers among other problems, many New Yorkers are skeptical, to put it mildly.
To counter the opposition, Walmart is positioning itself as the solution to urban food deserts – areas where finding real food is next to impossible. But as Anna Lappé has eloquently argued,
» Read more about: Is Walmart's March into Cities Helping or Hurting? »