Friday, January 14, 2011

One Nation, Under Walmart

Willingly or unwillingly, humanity has become encroached by a materialistic generation. Some have fought this change that has grown dramatically over the past few decades. Others have accepted the infiltration of advertising, materialism, and large corporations. This American dream has become a nightmare. Much like a poisonous gas it has found a way to slowly diffuse into the air of other nations. This toxic mass destroys the heritage of a nation along with its simplistic way of life.
People all over America are currently absorbing the effects of a recession that has swept the nation. Many causes and solutions have been proposed that could possibly bring America’s financial crisis to an end. While economists are arguing back and forth, there should be no doubt that Wal-Mart has played one of the biggest roles in our economic downfall.  As a multi-billion dollar corporation, Wal-Mart has been unethical with their profits. This treatment has not only hurt the majority of their hourly associates and lower management, but their unethical ways have affected everyone. The only option left to hinder Wal-Mart’s dishonorable practice is for the opposition to promote the success and support of local business. We need to put an end to the injustice caused by this corporate beast.
            Some people view Wal-Mart as the savior of our nation. These people blindly state this due to the fact that Wal-Mart employs more people than any other American corporation. We all love that we can shop at one store that has a wide variety of products at a usual lower price. However, would we still love this corporation if it was the cause for many of our financial struggles and destroyed our nation’s economy? We all need to look more closely at the truth behind this corrupt business. In an article titled “The Wal-Mart You Don’t Know,” Charles Fishman makes readers aware that “we are shopping ourselves out of jobs.” The retail job market has actually shrunk tremendously due to the rapid expansion of Wal-Mart.
            Sam Walton opened his first store in the 1960’s among a small town in Arkansas. As a known supporter of American manufacturers, Sam Walton promoted American business and economic growth. Throughout the years, the company expanded rapidly, and with the passing of Wal-Mart’s original founder the corporation’s ethics declined. The retail chain we all know of today is not the same as it once had been. Wal-Mart went from a local competitor to the monopolized money hungry corporation that is currently spread across the globe. According to research by the United Food and Commercial Workers International Union, there were over “4,300 world-wide Wal-Mart and Sam's Club stores” in the year 2003. A documentary titled “Wal-Mart Nation” also states that “Wal-Mart opens a new store every 1.5 days” (Munger). The corporation also shifted their use of American manufacturers to foreign producers along with company expansion.
            As a Wal-Mart employee, I have seen numerous job cuts and hour cuts within the past three years. They have even dropped the number of full time positions to more numerous part time positions. These cuts would seem understandable for any normal business throughout the economic crisis. Then again, Wal-Mart is not your average corporation. In fact, Wal-Mart is thriving now better than ever. These cuts have been disguised under what salary management has called a new backroom and floor layout plan. If you were to confront management over such issues, they would likely use the recession as an alibi. However, we are all aware that Wal-Mart has not seen a financial decline throughout the period of our nation’s market collapse.
            Earlier this year, Wal-Mart supercenters across the country began a new program of organizing associates on a layout plan for each store. After cutting the amount of hourly department managers in half, the remaining associates were forced to step down. This gave the fewer number of hourly managers more responsibilities. You may have also noticed that Wal-Mart has begun using an electric powered machine to replace the number of cart-pushers per store. This company has gone to every link to cut out labor payout and increase gains. All of these are obviously ways to ensure upper management will receive even higher profits.
            This is not the end to the newly proposed scheme. As previously stated, Wal-Mart has cut the number of full-time positions available by hiring more part-time workers. By cutting associates hours below thirty-two hours per week, the company saves in health insurance pay-out. Employees of Wal-Mart cannot afford to pay for health insurance themselves, especially those on part-time salaries. In fact, the government is likely to be paying more money in health care for these workers than their employer. Without these government funded health care programs, many associates would be hopeless. An interview took place with a co-manager from Wal-Mart in the documentary titled “Wal-Mart: The High Cost of Low Price,” this manager claims that his training store managers had stated multiple names, “keep the number of associates from being full time, as many as you can, keep many of them part time.” Both store managers and assistant managers are being trained to keep their turnover rates as high as possible. By keeping a high turnover rate the salary of their associates are being kept at a minimum and upper management embraces every minute of it.
Very similar to this argument is that of government aided programs offering food stamps. The average hourly Wal-Mart associate does not earn enough to provide for a family, much less themselves. With only part-time openings, these jobs would only be fit for that of students or people seeking a little extra money on the side of their other careers. However, the point is that many people are trying to raise a family as an associate working for the company. The government is forced to pay-out the money that Wal-Mart refuses to pay through food stamps. According to a PBS documentary titled “Store Wars,” Wal-Mart’s “salary for full-time employees… places employees with families below the poverty line” (Peled). Considering the amount of money that the corporation brings in yearly, this is unethical and completely absurd. The taxpayers should not be held responsible for paying associates that are under-cut by Wal-Mart’s unethical ways.
            The majority of Wal-Mart associates, like myself, see through the company’s immoral ways, but are rather forced to accept these half-hearted conditions on behalf of their jobs. We are forced to believe that Wal-Mart is seeing a financial decline, but yet they are paying millions for celebrity endorsements. The fact that Wal-Mart expects their associates to be so gullible to the truth completely undermines our intelligence. The reality is that the company decided in 2008 that throughout the recession, they were going to target wealthier customers and encourage them to save money by shopping at a retailer that can bring similar products at a lower price. In order to undercut more expensive chains, Wal-Mart would have to create an image that shows an increase in their product’s quality. Wal-Mart’s unstylish cheap clothing has been known as a drawback, so they made the decision to pinpoint their focus on improving their clothing lines. This was kicked off with million dollar advertisements and endorsements by some of the biggest named celebrities in America today such as, Miley Cyrus and Taylor Swift. These commercials set out on targeting naive teens and adolescents that will believe a celebrity endorsement makes the product somehow better quality. Wisdom proves this to be nothing more than a money earning fallacy.
            However, new clothing lines were not the only way Wal-Mart set out to target the business of wealthier customers. In 2008, Wal-Mart also began a new program that has started off with the remodeling of their stores one by one. This program costs thousands of dollars per store and consists of shorter aisles, wider walk ways, and carrying a lesser amount of products. By narrowing variety, Wal-Mart saves in the amount of money paid out to individual manufacturers. The issue for the company is that their regular customers may not be able to find the products they prefer and could potentially shop at other retailers. Wal-Mart is not very concerned with cutting back product variety as long as they achieve their goal of bringing in more prestigious shoppers. The company is controlling what we can buy, how much we pay, and dominating the American market.
            Along with these various changes in company policy, Wal-Mart also changed their company logo. The bright yellow, smiling logo has been changed into more generic, but professional looking star. This was supposed to symbolize the more professional changes in the company, which will probably never come to be. This logo switch has come as no surprise to many people because a business with such horrible ethics and standards should not bear a bright, happy trademark. Along with the deletion of the smiling logo, “Always Low Prices” became replaced with “Save Money, Live Better.” Obviously, Wal-Mart is out to prove that the company enhances the quality of living, and plays no part in the destruction of the world’s economic system. The new slogan is a contradiction to the way the company conducts their business. Wal-Mart has only brought heartache and destruction into our nation. Only a shallow mind could believe that the only way to enrich their lives is through the scheme of saving money. Hopefully we all realize by now that money and happiness are not related.
            On a more focused prospective, this argument may be a little more familiar to the media. Nonetheless, the issue of large corporations destroying local business is valid. The success of local industry is vital for economic growth. The system of thriving local business causes more money circulation, keeping a greedy few from obtaining the majority. According to Forbes, four of the top eight richest people in America are of the Walton family. Together, these four Walton’s are worth “over 70 million dollars” (Miller, Greenberg 12-15). These facts make the average hourly worker for the company a little discouraged and understandably bitter during the hour and pay cuts that are taking place. The solution seems simple enough, but quitting does not seem like an option for Wal-Mart employees. Due to the closings of local businesses, the job market has progressively shrunk leaving these employees with no alternatives. There have even been instances where small business owners were forced to close down due to the loss of business to retail giants and the best given alternative for them was to work for that same company.
            American manufacturers have also suffered greatly due to the company’s expansion. This may sound redundant, but the truth is that the majority of products that are carried in Wal-Mart stores are manufactured in China. America was founded on the idea of independence from foreign nations and the backbone of our economy has been focusing on promoting American manufactured goods. Wal-Mart has found that labor and expenses are cheaper by importing from foreign manufacturers.  We are all aware that creating jobs in China has hindered our own economic growth here in the United States. Wal-Mart is not a business that is as patriotic as they seem. In fact, when you walk into a store here in America you will likely see the Unites States flag waving high above the sign. However, the very way that Wal-Mart does business contradicts our nation’s standards.
Obviously, when the largest corporation in the nation begins cutting positions, hours, and cheating their associates financially, then that nation will greatly suffer.  You may be asking yourself if there is a possible solution to this mess or if there is something you can do to make a difference. The truth is that there is nothing you can do. At least, together we need to stand up against this unethical corporation, but individually one person cannot make a difference. The only option we have left is circulating our money into local businesses. We need to become aware of the damage that Wal-Mart has caused to society, and learn from our mistakes. The best way to make these statistics of Wal-Mart known is by using the media. We can make a difference by infusing our knowledge of the damage that big corporations cause into music, movies, books and the internet.
Personally, I am disheartened and cynical about my future with a company like Wal-Mart. As an associate of an unethical corporation, I feel like I am being cheated almost as much as I feel like I am cheating others. Although, I do understand why so many take the beating that Wal-Mart bestows upon their workers. “Wal-Mart: Good or Bad for America” says it best, “For the average person, opposing Wal-Mart is an unaffordable luxury” (Carlson). The majority wants to break free from this big machine, but they are waiting for someone else to take the first step.
Next time you walk into a Wal-Mart Supercenter observe your surroundings. The workers you come in contact with will likely have a low morale. When confronted by a customer on their feelings toward their job and the corporation, the majority of associates will share their disgust. The chances are great that you have been shopping and have overheard the rants between associates. While many customers blame the individual for being rude, or distressed, the workers attitude is likely to have been provoked by unethical treatment from their managers or the corporation as a whole. The poor attitude of a cashier cannot always be shrugged off as a bad day, but it is more probable that they have come to the realization that they have a dead end career.
Wal-Mart is a corporate beast that crushes anything that stands in the way of its money-grubbing systems. “In 2003, Wal-Mart reached $244.5 billion in sales,” according to “The Case Against Wal-Mart” (Norman 8). We should start investing our money in the success and support of local business instead of allowing the rich to get richer and the poor to get poorer. The ones who pour their heart and soul into the flourishing of the corporation are the ones who are struggling financially.  The system is truly unfair and needs to stop. The corporation’s business policies are unethical. Hopefully, we can make changes that will stimulate our economic growth once again. By bringing about awareness of the issue, we can change and give hope for a brighter tomorrow.

            

Works Cited
Carlson, Tucker. “Wal-Mart: Good or bad for America?” MSNBC.com, Nov. 23, 2005.
Fishman, Charles. “The Wal-Mart You Don’t Know.” Fast Company. Nov. 17, 2009: 1.
Miller, Matthew, and Duncan Greenberg. “The Richest People in America.” Forbes. The 400.
            Oct. 19, 2009: 12.
Norman, Al. “The Case Against Wal-Mart.” Atlantic City, NY:  Raphel Marketing, 2004: 8.
Store Wars: When Wal-Mart Comes To Town. Dir. Micha Peled. DVD. PBS, 2003.
Wal-Mart Nation.  Dir.  Andrew Munger.  DVD. Title House Distribution, 2008.  
"Wal-Mart Quick Facts". United Food and Commercial Workers International Union (UFCW).
Nov. 16, 2009.
Wal-Mart: The High Cost of Low Prices. Dir. Robert Greenwald. DVD. Brave New Films, 2005.

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