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Wal-Mart closure of union store
The United Food and Commercial Workers announced it has launched a major grassroots mobilization to support nearly 200 workers in Jonqueiere, Quebec, who have been trying to negotiate a first contract with Wal-Mart.
Wal-Mart announced on Feb. 10 that it plans to close the Quebec store rather than submit to binding arbitration under Quebec labor law.
UFCW Pres. Joe Hansen said: "This latest action by Wal-Mart demonstrates, once again, the company's systematic abuse of working families. This is a company that prefers to spend millions and millions to dress up its image on TV rather than treat workers with respect."
Wal-Mart is the world's largest retailer and the largest corporation and private employer in the United States. The company had some $244.5 billion in sales in the year ending in January 2003. Wal-Mart, which employs some 1.4 million people worldwide, pays its U.S. workers an average of $8 an hour, with few benefits.
The Quebec Labour Relations Commission certified the election at the Jonqueiere store last year based on representation card recognition. After three months of negotiations, the UFCW sought binding arbitration, which is available for first contracts under Quebec labor law.
Wal-Mart Chief Executive Officer Lee Scott told The Washington Post that the company decided to close the Quebec store because "you can't take a store that is a struggling store anyway and add a bunch of people and a bunch of work rules that cause you to even be in worse shape."
The Post reported that Scott said he saw no advantage to having higher labor costs and refused to enter into arbitration for the sake of being "altruistic." Scott was quoted as saying: "It doesn't work that way."
UFCW Canadian Director Michael J. Fraser said the Quebec labor commission granted the union's request for arbitration shortly before Wal-Mart announced it would close the store. "We were simply following the normal process," he said. "The final collective agreement would be up to the arbitrator, not us."
The UFCW's Hansen said: "The company is accused of discriminating against women. It cheats workers out of pay. Wal-Mart has illegally spied on, coerced, and bribed workers who want to form a union. And now it closes a store because it was facing a decision by the Quebec Labour Ministry to subject the company to a fair and impartial settlement with workers at the Jonquiere store."
The UFCW launched an Internet-based petition campaign to CEO Scott, calling for a stop to the store closure and calling on the company "to live up to the responsibilities that come with being the world's largest corporation. Those responsibilities begin with respecting workers, consumers and communities," the UFCW said.
To sign the petition, go to UFCW's website.
Meanwhile, U.S. Rep. George Miller (D-Calif.), the senior Democrat on the House Education and the Workforce Committee, requested an investigation by the Department of Labor's Inspector General to determine whether an agreement between Wal-Mart and the DOL giving the giant retailer the authority to conduct its own investigations of employee wage and hour complaints represents a sweetheart deal between the Bush administration and Wal-Mart.
In the 2004 election cycle, Wal-Mart donated some $2.1 million to candidates and campaigns. About 80 percent of those donations went to Republicans, according to OpenSecrets.org.
Under the agreement, which was disclosed by The New York Times on Feb. 12, Wal-Mart will be allowed 15 days to investigate and rectify employee complaints before DOL conducts an investigation. DOL employees at field offices around the country have been instructed to notify the DOL office in Little Rock, Ark., which will then notify Wal-Mart's headquarters in Bentonville, Ark., of complaints, according to Miller.
The Times report said DOL reached the "compliance agreement" with Wal-Mart after settling for $135,000 a case that related to violations of child labor law in three states involving the use of dangerous heavy machinery by minors.
In addition to child labor law violations, the company also has been charged with failing to pay workers for overtime hours, discriminating against women employees, and locking workers into stores at night.
Miller said Wal-Mart's arrangement with the DOL could allow the giant employer to cover up evidence of a violation and would discourage aggrieved employees who might fear retribution from the company.
"I am very concerned about this secret arrangement between Wal-Mart and the Bush administration," Miller said. "This is a company that has been accused of a lengthy list of labor violations. Wal-Mart does not have the credibility to serve as an impartial investigator of labor violations against itself. I intend to find out how this arrangement was reached and, if appropriate, I will consider asking Congress to rescind the agreement if it cannot be justified."
"Once again, it looks like the Bush administration is doing a favor for a powerful friend and contributor at the expense of workers who do their jobs and still cannot get fair treatment in the workplace," Miller said.
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