Introduction As stated on the corporate website (2017), “Walmart is the largest retailer in the world, where 2.3 million associates meet the needs of more than 260 million customers every week.” These numbers are huge, and with so many locations around the globe, they have had allegations been made by employees regarding their dissatisfaction about poor work conditions, gender discrimination, low wages, poor benefits, and inadequate health care. Walmart has been criticized for its policies against labor unions and this issue has prompted public outrage, (Johansson, 2005) which is of great concern for the market. The company has also faced criticism for being anti-union, but it has claimed that it is rather pro-associate, whereby employees …show more content…
Walmart however claims that their managers can handle complaints and grievance and that their employees do not need to pay a union to advocate for them. Walmart management views labor unions as negative (Ali, 2015), but if utilized correctly, it can actually have a positive effect on their business. Strong labor relations can make a business more successful in the long run and can help both employers and employees. Managers sometimes get the chills when they think of unions organizing in their businesses and sometimes adopt an adverse approach to any existing labor group. However, organizations can reap several benefits from the presence of a labor union if management and the labor unions work together toward the same goals. When employees contribute into the production process for a service, the quality increases as there is greater commitment on the part of those making or delivering the end-product. Dealing with labor unions improves employee satisfaction as they can rely on them as their voice to speak to the employers (Arthur, 2017). What Are The Key Issues Regarding Employee And Labor Relations? Over the years, Walmart has been at the center of controversies with regards, its low wages; overtime pay abuses, employee benefits, gender discrimination, negative impact on small business, immense dealings with China, tax avoidance and much more (Crofoot, 2012). Employees have been dissatisfied with these issues but seem as if they can’t voice it
Karen Olsson believes that Wal-Mart, the world’s largest retailer company, under pays their employees for the amount of work they do daily. They do not offer good working conditions for their employees or enough medical benefits to support themselves and their families. Sebastian Mallaby says that Wal-Mart is not wrong for the way that they run their business; he feels as though Wal-Mart does their consumers a favor by keeping the wages low and offering “low prices” (620). It’s just business! They have to do what it takes to remain the world’s top retailer and continue to, “enrich shareholders, and put rivals out of business” (620). Karen Olsson and Sebastian Mallaby both address the topic of big
In “Labouring the Wal-Mart Way”, Deenu Parmar discusses Wal-Mart’s poor business practices and mistreating of their employees. Parmar is biased in that she focuses primarily on the negative aspects of Wal-Mart and discusses mostly from the employees’ point of view. The essay attempts to sway people to stop shopping at Wal-Mart because the author portrays it as unethical by focusing on the poor wages, anti-unionization, and paying off charges instead of properly addressing the laws being broken. Parmar does point out that people will continue to shop at Wal-Mart, seemingly guilt-tripping those who do shop there. The whole article relies heavily on an emotional appeal, which forces the reader to sympathize for the employees of the company without
Walmart has the right to describe about the current benefits and job security they offer to their employees. They can also explain employees about how they are better than other unionised stores. They can also explain about the negative effects of unionising the store like strikes and job hour losses. They can inform them about the union fee employees has to pay if they join the unions. They can inform about the negative motives of people who run these unions. They can also explain them that the employees are treated as “associates” rather than just “employees” so it is duty of them to protect the best interests of the company.
Wal-Mart had been criticized for its record in employee relations. Wal-Mart had no unions, despite
Wal-Mart founded in 1962 by Sam Walton is now the largest American retail corporation. With thousands of chains of stores and warehouses Wal-Mart monopolized the American retail industry. In addition, Wal-Mart is the second largest retail corporation in the world employing of two million employees world-wide. As one of the most valuable corporations in the world Wal-Mart continues to improve their sales annually while offering some of the lowest prices available. Wal-Mart’s famous low price guarantee, come at a high expense of the environment, the small businesses, education, the rights and safety of the consumer, but most importantly their employees. Although Wal-Mart has plays a dominate role in American economy, this “American”
In the United States Walmart effects negatively retail worker wages as well as retail employment. In addition, University of California researchers found that workers in Walmart earn on average 12.4 % less than retail workers as a whole (UNI Global Union, 2012). Walmart’s workers demonstrated thier dissatisfaction with working conditions and low wages by protesting on Black Friday 2012, which is the day the company is making the biggest profit. Walmart workers stood up and more than 1,000 demonstrations in a hundreds encouraging Walmart to act ethicaly towards them. For workers protesting it was a huge risk as they are oficially not protected by any labour union (Progress, 2012). Another evidence that Walmart treats its employees unfairly are discrimination claims. Women workers in California pursue discrimination claims saying that Walmart systematically treats them unfairly. According to women workers retail giant denied to pay raises and promotions due to gender bias (Levine & Gupta, 2011).
“Companies like Wal-Mart are not run by saints” Mallaby asserts, putting forward one graceful negative before another, “They can treat workers and competitors roughly. They may even be poor stewards of the environment.” However, he continues, the company is large, global and it is only expected for critics to emerge to question its
Walmart employees, customers, and suppliers have seen their fair share of Walmart’s bad side. While Walmart’s founder, Sam Walton, claims to make their employees feel like they “are working for them” and that they care Walmart has done such a horrific job with the way they treat their employees that one day, the workers decided to walk out and go on strike. They walked out on the grounds that they “were emblazoned with the workers’ grievances: poverty wages, miserly benefits, dignity denied” (Eidelson 1). They felt like they weren’t only taking a stand against Walmart, but also taking a stand for the younger generations to come. Walmart’s employees are getting treated unfairly and are underpaid. The CEO’s, Michael Duke, annual salary gives him more money in an hour than an employee who works full-time would make in an entire year. In Bangladesh, over 100 workers “died in a factory without outdoor fire escapes, NGOs blame Walmart for pushing deadly shortcuts” (Eidelson 1). Not only are the employees being poorly paid by Walmart, but they are paying their life to Walmart just to make enough money to barely get by. Walmart even made a pregnant employee work around chemicals that eventually made her ill. After a trip to the doctor, Walmart allowed her to be put on a lighter duty, so they made her a door greeter; however, they
In the reading “Up Against Wal-Mart” by Karen Olson, she explains the tactics used by Wal-Mart in order to avoid paying their employees the fair wages they deserve. By training their employees to be anti-union, they can keep their pay lower while getting more labor out of them. In doing this employees are less likely to ask or receive promotions because they do not expect it to happen. Many of those who have worked at a Wal-Mart speak out on the mistreatment because they want a fair wage for the work they are putting in. The main focus for the way Wal-Mart runs their business is to teach their employees about working in a place union free. Those who disagree do not gain much change because they are quickly put down.
Next you look at inhumane working condition in those Walmart stores vs. happy and healthy employees in family business stores. Even though, the small family businesses are not union they are taking care of employees and their families despite Walmart that is union and they are not fighting for employee’s rights and benefits. The bottom line of this corporations is how to make
With Wal-Mart being the site of various lawsuits little perplexity is left surrounding the multitude of cases involving discrimination and violations of the United States Equal Employment Opportunity Commission (EEOC) laws. In 2006, there was an average of 5,000 lawsuits per year, or about seventeen suits per day; as well as, a video documentary, that was made public knowledge of the aspects involving Wal-Mart’s policies and procedures, and the company’s regard for respect of its employees (Brantner, 2006). After reviewing, two of the most recent cases of Wal-Mart’s discrimination of the company’s employees, one is left to wonder if there is ever going to be a change in Wal-Mart’s compliance with the EEOC laws?
“Up Against Wal-Mart” by Karen Olsson, a senior editor at Texas Monthly and who’s article appeared in Mother Jones, introduces her article through the perspective of a Wal-Mart worker. She focuses on the negatives of Wal-Mart by telling the real life struggles of different Wal-Mart employees. “Progressive Wal-Mart. Really.” by Sebastian Mallaby, a columnist for the Washington Post, focuses his article on what Wal-Mart critics say and attempts to defend Wal-Mart by comparing Wal-Mart to other retailers. Even though Karen Olsson and Sebastian Mallaby both examine the negative effects of Wal-Mart, Olsson berates Wal-Mart’s unfair treatment towards employees and the unlivable wages that the world’s largest retailer provides while Mallaby
Wal-Mart Stores, Inc. is the world 's largest retail enterprise, with total revenue of $421.8 billion and a net income of $16.4 billion in 2011. 1 It is also the world 's largest employer, with 2.1 million employees worldwide in 2010 2, not including workers hired by its providers. In my opinion, Wal-Mart provides a clear illustration through which to look at how many multinational companies (MNCs) take part in an illegal and unethical behavior. They use their bargaining power and market control to pressure countries to overlook environmental degradation and violation of national labor laws. They dictate expected pricing for products, particularly through imports from overseas countries. Labor is fulfilled mostly by underage and underpaid employees. In the United States, since 2005, Wal-Mart has paid about $1 billion in damages to U.S. employees in six different cases related to unpaid work. 3 Furthermore, Wal-Mart opposes any form of collective action, even when employees are not seeking unionization, but simply more respect. 4 The fact that Wal-Mart opposes unions exist. The company has a long history of fighting them, to the point of closing stores after employees organize. Managers have been instructed to talk to their teams about why unions are so unwanted in their business. Overseas, the company was involved in a series of scandals, including multiple cases of bribery. In April 2012, The New York Times published a story that
While researching this topic, so many things were found to be eye opening. One in which is the way that Wal-Mart conducted themselves when they had to manage their employees. How they dealt with promoting them and demoting them. Last year Wal-Mart started a new management style and wanted to promote more family time and create a less workload on each of the managers and employees. Therefore, they changed the schedule to becoming 3 days on and 3 days off which created more room for managers to fall into the field. Managers would be thrown into the position of an area of the store they knew nothing about and expected to understand each thing and help customers find exactly what they
With every company there come strengths, weaknesses, opportunities, and threats and Wal-mart is no exception. Wal-mart sits at the number one spot when it comes to retail businesses but they have had many issues; in particular labor law violations because they did not allow their employees to take required lunch and meal breaks.