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NOW and Allies Support Lawsuit Calling for Emergency Contraception Access at Wal-Mart

Worker lawsuits stack up at Wal-Mart

MARCUS KABEL
Associated Press
Tue, Feb. 28, 2006                 [back to top]

One of Wal-Mart Stores Inc.'s most vociferous critics launched a campaign Tuesday with 17 current and former Wal-Mart workers speaking out against health insurance coverage they claim is too expensive, leaving them uninsured or on taxpayer funded programs.

News conferences by the workers in eight states Tuesday and four more scheduled later this week and next are timed to help a union-backed drive for legislation that would require the world's largest retailer to pay a fixed percentage for health coverage of its 1.3 million U.S. workers.

WakeUpWalMart.com, a group backed by the United Food and Commercial Workers union, said 10 speakers were current Wal-Mart employees and seven more had quit or been fired.

In workers' stories collected ahead of the news conferences by the group, several current employees talk about being unable to afford premiums and deductibles even after working for Wal-Mart for several years.

Dana Razaie has been a stocker at a Wal-Mart in Fridley, Minn., for about five years. She said she depends on state-funded MinnesotaCare for health coverage for herself and three children.

According to WakeUpWalMart, Razaie's wage of $11.29 an hour at Wal-Mart and a second job at a gas station leave her with take-home pay of less than $20,000 a year. Razaie says she cannot afford Wal-Mart's health insurance plan with $300 monthly premiums and deductibles reaching over $1,000.

Wal-Mart said it is already taking steps to make insurance more affordable. It offers a new plan this year that costs $23 a month and covers three doctor visits and three prescriptions before a deductible of $1,000 kicks in.

It also launched an $11 plan in a limited number of locations but will widen that to be available to half of all employees later this year, as well as shortening the eligibility period for part-timers and adding coverage of their children.

"Our jobs give people the opportunity to move from public health programs to private health coverage," company spokeswoman Sarah Clark said.

Clark said 7 percent of new employees are on Medicaid when they join Wal-Mart, a percentage that drops to 3 percent within two years, and that Wal-Mart created 125,000 jobs last year.

Wal-Mart also offered testimonials from six current employees who praised the company's coverage, including a woman who was a divorced mother of three when she joined in 1998 in Hermiston, Ore.

"Within the first year with Wal-Mart, I no longer needed food stamps and I had medical, dental, and life insurance through Wal-Mart," wrote Heather Baumgartner, now a logistics manager in Grantsville, Utah.

Razaie was due to appear at a news conference Tuesday in Minneapolis. Other workers were to speak Tuesday in Boston; Dallas; Lansing, Mich.; Orlando, Fla.; Philadelphia; Tulsa, Okla.; and Syracuse, N.Y. The other five events over the next two weeks are to be held in Connecticut, Kentucky, Maine, New York and Tennessee.

The campaign comes as unions are pushing for bills in several states similar to one passed in a veto override by the Maryland legislature in January.

Maryland's "Fair Share" bill, which has been challenged in federal courts by a national retail association, requires large employers to spend at least 8 percent of payroll in a state for employee health coverage or pay the difference into state coffers for publicly funded programs for the uninsured.

Proponents say similar bills filed in at least 22 states would stop taxpayer subsidies for profitable companies that skimp on health coverage, leaving workers to sign up with state programs.

Opponents including Wal-Mart and many business groups say the bills are bad policy aimed at punishing Wal-Mart and will do nothing to solve the problem of the working uninsured and rising health care costs.

Labor unions are pushing the bills in about 30 states. Maryland is the only state to have passed it, and since then similar bills have been rejected, stalled or withdrawn in at least eight states, according to data from the National Conference of State Legislatures and Wal-Mart.

© 2006 AP Wire and wire service sources. All Rights Reserved.

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Plans for Super Wal-Mart approved

Fayetteville Observer
02/28/2006                      [back to top]

Feb. 28--The Fayetteville City Council has rezoned 46 acres on Ramsey Street for a new Super Wal-Mart.

The land is on the western side of Ramsey Street between Arbor and Sweetwater drives.

Keith Bates was the only council member to vote against the rezoning Monday night. He wants to have appearance standards for commercial buildings.

"I don't want Ramsey Street to look like Skibo Road," said Bates, who represents the Ramsey Street area.

Joe Riddle, who owns the property, said he did not know when construction on the store will start.

The rezoning came on a night when the council clashed between the interests of protecting neighborhoods and encouraging business development.

The naming of athletic fields at the Massey Hill Recreation Center for William "Bill" Passick was one of the few times Monday when the council was almost unanimous.

Councilwoman Juanita Gonzalez cast the lone vote against naming the fields for Passick, who coached football and baseball on the fields for almost 20 years. Among his players was Mayor Tony Chavonne. Passick gave Chavonne his first football uniform when Chavonne was in fourth grade.

The tension between neighborhoods and businesses exasperated Councilman D.J. Haire.

"If you don't want businesses on thoroughfares, and in neighborhoods, where do businesses go?" he asked.

Ten of the night's agenda items were related to land use. Under the council's new guidelines, the second meeting of the month is for public hearings, particularly those relating to rezonings.

Councilman Paul Williams successfully lobbied his colleagues to reverse their January decision not to rezone a property at 201 N. Reilly Road.

He noted that there are businesses at many of the neighborhood entrances along Reilly Road.

Gonzalez made a passionate plea for the council to protect neighborhoods in her district, which includes Reilly Road.

"I do not want Reilly Road looking like Yadkin Road, Bragg Boulevard or Hope Mills Road," she said. "I want it to have a mixture of businesses and residences."

"We campaigned on structured growth," she said. "When is it going to start?"

The council voted 6-3 to rezone the property. Voting against the rezoning were Gonzalez, Hair and Charles Evans.

Chavonne, Mayor Pro Tem Robert Massey, Bates, Williams, Curtis Worthy and Wesley Meredith voted in favor of the rezoning. Councilwoman Lois Kirby was absent.

Midway through the meeting the council members debated conditions for a mini-storage facility at 4600 Yadkin Road.

Mini-storage facilities require a special use permit. Proposed conditions for the permit called for the facility to be painted in earth tones. The council debated what that meant.

"Is there anyone on staff who can tell me what an earth tone is?" Massey asked.

Planning Director Jimmy Teal pointed to his green suit. He said earth tones are browns, greens and creams.

Riddle, who also owns the Yadkin Road property, left confused, not knowing whether he can paint the new buildings blue to match existing storage units.

Jonnie Sanderson, owner of commercial property on 4841 Murchison Road, also left frustrated. He wanted to rezone his property from residential to heavy commercial use.

The Zoning Commission recommended light commercial zoning, which would allow an office along his Murchison Road frontage, and heavy commercial on the remainder of his property.

As the council went back and forth, Sanderson finally stood up and told the members to go forward with what the Zoning Commission proposed.

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Hannaford to federal judge block Wal-Mart Supercenter

Watertown Daily Times
02/27/2006                            [back to top]

Feb. 25--MASSENA -- Hannaford Bros. Co. has asked a federal judge to order that the owners of St. Lawrence Centre stop all efforts to bring a Wal-Mart Supercenter to the mall.

In response to a lawsuit filed in January by the mall's owner, Carlyle St. Lawrence LLC, White Plains, Hannaford, based in Portland, Maine, has asked a U.S. District Court to enforce a restrictive covenant in its lease agreement that prohibits Carlyle from putting a grocery store in its mall, which is adjacent to a plaza where Hannaford operates a store.

Carlyle sued in state Supreme Court to have the covenant voided, indicating in court documents that Hannaford's attempts to stop construction of a Wal-Mart at the St. Lawrence Centre could cause "catastrophic and irreparable harm" to the mall.

The case was moved to District Court on Jan. 31 at Hannaford's request. In its answer to the suit filed Wednesday, Hannaford claims its lease does not allow any grocery store or store with a major food department, such as is found in a Wal-Mart supercenter, to be located in the mall or the St. Lawrence Plaza, where Hannaford's store is located.

While asking that Carlyle's suit be dismissed, Hannaford is also asking a judge to declare Carlyle in violation of the restrictive covenant in its lease and to issue a temporary, preliminary and permanent injunction preventing Carlyle from taking any further action toward developing the supercenter, including seeking any approvals or permits needed for the project.

Carlyle has contended that, through a succession of owners of both the mall and the plaza, the covenants have become invalid. It claims the restrictions do not "run with the land" and Carlyle is not bound by the covenants, which it believes represent "an unreasonable restraint on business and economic development," according to court documents.

Hannaford's lease agreement was made May 30, 1990, with The Heritage Company of Massena, the developers of the mall and the St. Lawrence Plaza. At the time, Heritage did not own the mall or plaza property, having transferred ownership in January to the St. Lawrence County Industrial Development Agency in exchange for a $55 million IDA bond for the purpose of financing the development's construction. The IDA was to transfer the property back to Heritage upon repayment of the debt.

Carlyle contends the IDA did not execute the lease nor related property documents with Hannaford, including a "memorandum of lease." The IDA transferred ownership of both properties back to Heritage in October 1990.

Although Heritage was the IDA's "leasing agent" at the time it entered into a lease with Hannaford, Carlyle claims Heritage exceeded its authority by "intentionally creating an encumbrance on IDA property," an alleged violation of the terms of its sale agreement with IDA. It claims Heritage could not legally create the disputed covenants because it did not have title to the property.

Carlyle says the memorandum of lease contains no language that binds future owners of the property to the covenants between Heritage and Hannaford, and Carlyle is not bound by them because it "did not have notice" of the covenants.

Carlyle indicates in court documents that the development of the Wal-Mart supercenter represents "an excellent, if not the only, opportunity to improve meaningfully" its mall's occupancy rate, which has been about 50 percent for the past several years.

Because of the mall's struggles, the town of Massena has considered seizing mall property under eminent domain to help the Wal-Mart supercenter or possibly another retail development get built. The idea would be to pay Carlyle fair market value for the proposed Wal-Mart space and then market it for development.

The Town Council has recently cooled to the idea of using eminent domain to acquire the property, although it has not ruled out the proposal.

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Wal-Mart is at a turning point

Business Report                [back to top]

Bentonville, Arkansas - After watching its sales momentum surge over the past four decades, Wal-Mart Stores now finds it has to work harder to grow. With 3 900 stores nearly saturating the US market, it is the company's sales strategy, not new retail outlets, that will determine Wal-Mart's future.

Analysts are optimistic that the retailer will get the job done - even if the company isn't so sure itself. Wal-Mart is offering a broader selection of high-end items and sprucing up its stores, but has set a yearly earnings target below that of people who watch the world's largest retailer.

In a world where most Americans already live near a Wal-Mart, chief executive Lee Scott is betting that trendier merchandise and a more appealing shopping environment will boost sales faster than simply opening new Supercenters.

The firm is clearly under pressure. Although Wal-Mart reported last week that fourth-quarter earnings were up 13.4 percent, its stock slipped as revenue fell short of Wall Street projections and its profit outlook disappointed the market. The stock ended the week at $45.45 (R268), near the low end of its 52-week range between $42.33 and $53.49.

Many industry analysts expect Wal-Mart to have a good year as it continues to deploy its new strategy - despite energy prices that pinch the spending power of its core lower-income customers and have driven up Wal-Mart's own costs.

"The outlook this year is the best it's been in about the last three years," says Richard Hastings, a senior retail analyst at Bernard Sands.

He notes that Wal-Mart has been stocking its stores with trendier women's fashions and higher-end home electronics since late last year. The company is also renovating 1 800 stores, widening aisles, lowering shelves, sprucing up floors and cleaning restrooms.

The aim is not so much to get new customers in the stores as to lure millions of consumers who shop for basics such as groceries and paper goods to the aisles that offer fancier clothes, electronics and home furnishings.

Analysts say the company needs these changes to help reclaim sales lost to upscale rival Target.

Scott told analysts in October that 86 percent of Americans shopped at Wal-Mart at least once a year, but the higher their income bracket, the less likely they were to leave the grocery or staples departments.

Fourth-quarter results, covering a holiday season when some new products were in place, showed that Wal-Mart seemed to be headed in a good direction.

"Change is in the air and in the results," writes Goldman Sachs analyst Adrianne Shapira. Shapira says Wal-Mart was conservative in setting a target for earnings a share this year of $2.88 to $2.95, below Wall Street expectations, and put her own estimate at $2.94, up 12.6 percent from last year.

But problems remain, not least of which is Wal-Mart's size. The chain has three times as many stores as Target and plans about 1 500 more stores. That makes it harder to keep stores looking fresh and to ensure that new displays, products and styling are in place throughout the company.

"They're paying attention to their problems. They are aware that when it comes to store-level execution there are problems and they're paying attention to it," Hastings said.

While Wal-Mart is trying to raise its profile among affluent shoppers, it also aims to improve its image with workers and the public. Union-backed critics continue to hammer at Wal-Mart for what they say are substandard wages and health benefits, and organised labour is pushing bills in about 30 states that would force Wal-Mart to spend more on health coverage. - Sapa-AP

Business Report 2006. All rights reserved.

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Wal-Mart Urges States Not Pass Higher Health Costs Law

Dow Jones Newswires
02-27-06                           [back to top]

NEW YORK -(Dow Jones)- Wal-Mart Stores' (WMT) chief executive urged U.S. governors not to pass legislation that would burden the giant retailer with higher health care costs for its employees and pledged to work with the governors to move workers off state Medicaid rolls under mounting pressure to spend more on health insurance, the New York Times reported in its Monday editions.

H. Lee Scott Jr. said that state legislation aimed at improving Wal-Mart's benefits "may score short-term political points, but they won't solve America's health care challenges," the newspaper reported.

Scott said that Wal-Mart's health plans were "not perfect" but that the company was committed to improving the health care system by expanding its benefits and by opening low-cost medical clinics for workers and the public in its stores, the Times said.

The speech, given at the annual meeting of the National Governors Association here, was directed at an increasingly important constituency for Wal-Mart: state leaders who have veto power over legislation aimed at forcing Wal-Mart to spend more on health care, the Times reported.

More than 20 states have introduced such legislation this year, and even though few of the bills have a serious chance of becoming law, according to state leaders, their very existence underscores how big a political problem health care has become for Wal-Mart, the report said.

Scott's remarks on health care closely followed a set of recommendations laid out in an internal Wal-Mart memorandum last year. In the memo, M. Susan Chambers, Wal-Mart's executive vice president for benefits, recommended that the company try to reframe the issue as a national problem, the newspaper reported.

According to the memo, Wal-Mart's 1.3 million employees - who make, on average, $20,000 a year - spend 8% of their income on health care, nearly twice the national average. And 46% of employees' children are either uninsured or on Medicaid, the memo said.

(c) 2006 Dow Jones & Company, Inc.

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Ex-UN Amabssador Andrew Young To Head Pro-Wal-Mart Group

Associated Press
02-27-06                     [back to top]

BENTONVILLE, Ark. (AP)--Former United Nations ambassador and Atlanta mayor Andrew Young will be the public spokesman for a group that defends Wal-Mart Stores Inc. (WMT) against attacks from organized critics.

Working Families for Wal-Mart, a group of community leaders from across the country, was set to announce Monday that Young will be the chairman of its 16- member steering committee.

Working Families for Wal-Mart was formed in December to answer attacks from two union-backed groups that are pressuring Wal-Mart to improve wages and benefits.

Wal-Mart is the group's largest financial backer.

Young says he will be a public face for Working Families for Wal-Mart and will give interviews and publish opinion articles defending Wal-Mart, which is the world's largest retailer.

Young says Wal-Mart offers some of the best entry-level jobs for poor people and makes products available to the working poor.

He says he is not being paid but said an organization that he runs, GoodWorks International, has a consulting contract from Working Families for Wal-Mart.

(c) 2006 Dow Jones & Company, Inc.

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Brinker Executive Simon Hired By Wal-Mart; Co. Won't Say Why

By Richard Gibson,
Dow Jones Newswires
02-27-06                            [back to top] 

DES MOINES, Iowa -(Dow Jones)- Wal-Mart Stores Inc. (WMT) confirmed Monday that it had hired Bill Simon, a top executive at restaurateur Brinker International Inc. (EAT), but wouldn't disclose why.

A spokesman for the retailing giant said an announcement was pending.

A Brinker spokeswoman confirmed that Simon would be leaving the company in March.

Simon's move was first disclosed by Lehman Brothers securities analyst Jeffrey Bernstein.

Hired by Brinker a year ago, Simon was senior vice president of Global Business Development, responsible for expanding the company's casual-dining brands abroad as well as overseeing its franchising functions.

Simon previously was secretary for the Florida Department of Management Services, where he supervised the state's information technology, purchasing, facilities and human resources areas.

(c) 2006 Dow Jones & Company, Inc.

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Andrew Young goes to bat for Wal-Mart

By Maria Saporta
The Atlanta Journal-Constitution
February 27, 2006                                  [back to top]

Former Atlanta Mayor Andrew Young is rising to the defense of Wal-Mart as a company that helps the poor, but acknowledges his new efforts may be in conflict with his years of being pro-union. In an announcement to be made today, Young says he'll be chairman of the national steering committee for the new Working Families for Wal-Mart, funded by the company and its suppliers.

Wal-Mart has been criticized for allegedly not paying its workers enough, not offering decent health care benefits and for driving small-town retailers out of business. Young says the criticism is unfair and one-sided because it doesn't credit the retailer for its contributions to low-income communities.

"I like to fight poverty," Young said Sunday. "For almost 10 years, I've been using in my sermons the message that fighting poverty is good business, and I've used Wal-Mart as an example. The question is how do you fight poverty - with high wages or low prices? The answer is both."

Young also is chairman of the Drum Major Institute for Public Policy, a nonprofit that describes itself as dedicated to "progressive public policy for social and economic fairness." Once known as the Gandhi Society, Young said, it has a "New York liberal constituency that was very valuable and very important in the civil rights days." The group was founded by Harry Wachtel, lawyer and adviser to the late Rev. Martin Luther King Jr.

"The Wal-Mart people know I've been a strong advocate of the trade union movement," he said.

Last March, Drum Major Institute's "Marketplace of Ideas" round table, which took place at the Harvard Club in New York, featured Andy Stern, president of the Service Employees International Union. Stern's union is the key backer of Wal-Mart Watch.

Young says his roles with Wal-Mart and the Drum Major Institute are at apparent philosophical odds. "There's probably a conflict," Young said. "I can't step down from my past."

But he said he has "worked out these conflicts in my own mind" and that he sees opportunity for dialogue.

Paul Blank, campaign director for WakeUpWalMart.com, said Young's new group "is another well-funded ploy by Wal-Mart to try and cover up its record of driving down wages, not providing affordable health care, shifting costs onto taxpayers and shipping U.S. jobs overseas."

He called on Young "to use his new position to help us change Wal-Mart for the better, rather than defend its abysmal record of child labor violations and poor health care."

The company has told Young that a family can save $2,300 a year by shopping at Wal-Mart. Company founder Sam Walton "really created a model that allowed any American to have middle-class luxuries at a low cost," Young said.

In addition to Young, the steering committee of 16 other members includes two other Georgians: the Rev. Barbara King and Ron Galloway, an Augusta filmmaker who recently made a pro-Wal-Mart documentary. Young's firm, GoodWorks International, has been hired by Wal-Mart to be a consultant. The other steering committee members are not being paid.

"His position is unique, and it's related to the specific time commitment he has made," said Kevin Sheridan, a spokesman for Working Families. "He will be the public face and the spokesman for the group."

Wal-Mart formed the group in December in response to growing criticism from two organizations supported by labor unions, Wal-Mart Watch and WakeUpWalmart, which lead grass-roots campaigns to push the company to increase wages and benefits.

Young, a civil rights leader and a former U.S. ambassador to the United Nations, did acknowledge that some of the criticisms may be valid.

"Nobody who hires over 1 million people is free from faults and complaints," said Young, who is also a former union organizer. "But the question is whether you have a process to address them and a management that is sensitive to those complaints."

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Wal-Mart tries to head off critics on benefits

By Michael Barbaro
The New York Times
MONDAY, FEBRUARY 27, 2006                     [back to top]

WASHINGTON With Wal-Mart Stores under mounting pressure to spend more on employee health insurance, the company's chief executive has urged U.S. state governors not to pass legislation that would burden the giant retailer, and he pledged to work with the governors to move workers off state Medicaid rolls.

The executive, H. Lee Scott Jr., said on Sunday that state bills aimed at improving Wal-Mart's benefits "may score short-term political points, but they won't solve America's health care challenges."

Scott said Wal-Mart's health plans were "not perfect" but that the company was committed to improving the health care system by expanding benefits and by opening low-cost medical clinics for employees as well as the general public in its stores.

Trying to broaden a debate over employer health care plans that has focused heavily on Wal-Mart, Scott said: "At the end of the day, this is not about me. It is not about Wal-Mart. And it is not about you. It is about all of us and what we can do to keep this country great."

The speech, at the annual meeting of the National Governors Association in Washington, was directed at an increasingly important constituency for Wal- Mart: state leaders who have veto power over legislation aimed at forcing Wal- Mart to spend more on health care for its employees.

More than 20 states have introduced such legislation this year, and even though few of the bills have a serious chance of becoming law, according to state leaders, their very existence underscores how big a political problem the company's approach to health benefits has become for Wal-Mart.

In a bit of political theater, Scott pledged to travel to any governor's office to discuss health care, offering to lend the company's legendary technology expertise to help manage the cost of benefits.

"The only thing I ask," he said, in an apparent jab at various proposed health care bills, "is that we talk about real solutions to the health care challenges facing working families."

Scott's remarks closely followed a set of recommendations laid out in an internal Wal-Mart memorandum last year.

In the memo, M. Susan Chambers, the Wal-Mart executive vice president for benefits, recommended that the company try to reframe the issue as a national problem.

According to the memo, Wal-Mart's 1.3 million employees - who make, on average, $20,000 a year - spend 8 percent of their income on health care, nearly twice the national average. And 46 percent of employees' children are either uninsured or on Medicaid, a publicly funded program for low-income people, the memo said.

Scott, referring to Wal-Mart workers on Medicaid, said: "Do we want more of our associates' kids on our health plans? Of course we do."

But Scott hinted at another reason so many of his workers were on Medicaid. "Have many states made Medicaid programs far more generous in order to cover the kids of working families? Yes, they have."

Scott said Wal-Mart was proud of the changes it could afford to make, like allowing the children of part-time workers to enroll in the company's health insurance plan, reducing the two-year waiting period before a part-time worker could quality for benefits and opening 59 health clinics in its stores.

Scott conceded that one of Wal- Mart's new efforts, the introduction of health savings accounts, had gotten off to a slow start because setting up the accounts was "too complicated." He said he found the process confusing and had not yet set up his own account.

Christine Gregoire, the governor of Washington State and a Democrat, said 20 percent of Wal-Mart workers in her state received public health care assistance. After Scott's speech, she said that this was "a problem that he has to solve."

Copyright © 2006 The International Herald Tribune | www.iht.com

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Wal-Mart CEO to governors: Help make health care better

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WASHINGTON (AP) — Wal-Mart's (WMT) chief executive told America's governors Sunday that he needs their help to make health care more affordable and accessible for the retail giant's 1.3 million U.S. employees.

Lee Scott said Wal-Mart's health care costs have risen 19% in each of the last three years and that it's only a matter of time before it, along with other businesses, cannot sustain rising costs.

"We know our benefits at Wal-Mart stores are not perfect," Scott told the National Governors Association. "Do we want more of our associates' kids on our health plans? Of course we do."

Wal-Mart, based in Bentonville, Ark., has been the target of harsh criticism from watchdog groups and organized labor for what they say are costly and inaccessible plans. Under mounting criticism Wal-Mart last fall offered new lower-premium insurance aimed at getting more of its workforce on company plans.

The company announced last week it is expanding that effort.

Scott said the "Value Plan" of $11 a month, now available in some areas, will be available to half of the company's employees within the next year. He also said children of part-time Wal-Mart employees will be eligible for health coverage as soon as the parent is and that the company plans to increase to about 50 the number of in-store health clinics that serve employees and the public. (Related: Wal-Mart to upgrade benefit offerings)

He said improving the company's wellness program — encouraging employees to eat right and take care of their bodies — is its biggest challenge and the area where it has performed the poorest.

Scott also criticized bills filed in at least 22 states that would force the retailer to spend more on health care, saying they require companies to "spend an arbitrary percentage" of payroll on benefits.

"I believe what we're seeing is a little too much politics," Scott said. "I think we all know what the employer mandate bills are all about."

Democratic Gov. Tim Kaine of Virginia said he was "intrigued by (Scott's) discussion about the weaknesses of the employer-based health care model in this country and sort of wondered what his thought about the alternative would be."

Republican Gov. Mark Sanford of South Carolina said Scott was discussing the reality of soaring health care costs and said there's work to be done so somebody "comes up with the right way of skinning the cat and then serves as a best-practice model for a lot of other companies and states."

Separately, former United Nations ambassador and Atlanta mayor Andrew Young was named the public spokesman for a group organized with backing from Wal-Mart that defends the world's largest retailer against mounting attacks from its critics.

Working Families for Wal-Mart, a group of community leaders from across the country, announced that Young will be the chairman of its 16 member steering committee formed in December to counter charges from two union-backed groups that are pressuring Wal-Mart to improve wages and benefits.

Young said he will be a public face for the group, giving interviews and publishing opinion articles defending the company. "They are some of the best entry level jobs that are available to poor people. And they also make products available to the working poor," Young said in a phone interview from Atlanta.

The ordained minister, three-term U.S. congressman and former mayor of Atlanta currently heads GoodWorks International, which pairs corporations and governments on global issues.

Young said he is not being paid but that GoodWorks has a contract from Working Families for Wal-Mart for consulting work. Wal-Mart is the largest financial backer of the group. Working Families for Wal-Mart declined to disclose how much Wal-Mart contributes or what it is paying GoodWorks.

Wal-Mart's critics, including the groups WakeUpWalMart.com and WalMartWatch.com, have attacked the company for not providing more health coverage and for other practices. Maryland's legislature overturned a governor's veto of a bill that would require Wal-Mart to spend more on employee health care or pay the difference into the state's Medicaid fund.

Wal-Mart and other large retailers have had fights with cities over attempts to locate new stores in crowded areas. Critics say the stores compound the problems of congestion. And Wal-Mart is the target of numerous lawsuits, including a pending class action in California in which the company is accused of discrimination against women in pay and promotion.

Young, himself a former union organizer, said he decided to get involved because he believed much of the criticism levied at Wal-Mart by unions was one-sided and wrong.

"The union position is talking about the redistribution of wealth, but they're not talking about generating new wealth. Wal-Mart is generating new wealth when it comes in," he said. "The pluses outweigh the minuses. They do give benefits, they do have health insurance."

Copyright 2006 The Associated Press. All rights reserved.

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A look inside the Wal-Mart business model

By Cecil Johnson
Knight-Ridder
February 26, 2006                  [back to top]

In ''The Bully of Bentonville," BusinessWeek writer Anthony Bianco produces the most penetrating examination of Wal-Mart's business practices and their ripple effects in American society that has been published since Wal-Mart watching became a serious pursuit of the business press and the academy. Bianco, who coauthored Business Week's widely acclaimed cover story on Wal-Mart, does not descend to the level of blatant Wal-Mart-bashing that characterizes the commentaries of some of the company's harshest critics. ''Bully" is solid journalism, gleaned from Bianco's own research and from other authors, whom he dutifully credits. ''Today, nearly half a century since Sam Walton opened the first store in Rogers, Ark., it is far from certain that even Wal-Mart can thrive in a Wal-Mart world," writes Bianco at the end. Bianco arrives at that uncertain assessment after: Examining how Wal-Mart treats its employees and underscoring the company's extreme hostility to labor unions. Spotlighting many of the instances in which Wal-Mart has thrown its financial and political weight around to force communities to change land-use restrictions to allow it to build supercenters, despite intense community opposition. Underscoring how the connection between Wal-Mart's everyday low prices and the outsourcing they cause results in the loss of thousands of American jobs and the transfer of whole industries from the United States to China and other countries. The fate of the Huffy Corp. of Celina, Ohio, is offered as a classic case of what can happen to a Wal-Mart vendor. According to Bianco, Wal-Mart ordered 900,000 bicycles, conditioned on a sizable, reduction in price per unit. The bicycle company opened a second factory in Farmington, Mo., that was staffed with low-paid, nonunion workers to meet the demand. But at the Wal-Mart price, Huffy lost $10 million in 1995. Huffy had to negotiate a pay cut with its unionized workers in Celina. The union members readily agreed just to keep their jobs. But Wal-Mart kept up the price-cut pressure, and the union balked at another wage cut. Huffy then closed its Celina plant, laying off 935 workers. It shifted production to the Missouri plant and opened another in Southhaven, Miss. But even the nonunion workers in those plants earned more than Huffy could pay and make Wal-Mart's price. The bicycle maker then closed both those factories and subcontracted work to China, where bicycle plant workers were paid 25 cents to 41 cents an hour. But that didn't save Huffy. When it fell into bankruptcy in 2004, its top creditor was its Chinese subcontractor. Its possessions were turned over to the China Export and Credit Insurance Corp., an agency of the Chinese government. But that's not the real glaring irony of the story. A developer built a Wal-Mart supercenter on the site of the historic old Huffy plant in Celina, Ohio. Those reprises of what the Wal-Martization of the world is doing to other companies and workers drive home the point that Wal-Mart could be its own undoing if it keeps putting Americans out of work and rendering them unable to shop even at its stores.

© Copyright 2005 The New York Times Company

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SunTrust to open branches in local Wal-Mart stores

by Jim Freer
South Florida Business Journal
February 24, 2006                                [back to top]

SunTrust Bank will open four branches in new Wal-Mart Supercenters in South Florida this year, adding the tri-county area to its growing alliance with the world's largest retailer.

SunTrust (NYSE: STI) plans to open the branches "the day the stores open" on yet-to-be-announced dates during the third quarter, said James Rasmussen, South Florida chairman and CEO for the country's seventh-largest bank.

Three sites are in Broward County and the other is in Miami-Dade County.

SunTrust anticipates Wal-Mart (NYSE: WMT) will provide added convenience for consumers and small business owners who use its 87 other South Florida branches, and expects numerous Wal-Mart shoppers will become SunTrust customers, Rasmussen said.

Officials of Atlanta-based SunTrust said they are not concerned with questions about the companies' demographic mix and Wal-Mart's controversial application for a bank charter.

SunTrust has a huge consumer banking network in the Southeast. But it is best known for private banking, corporate lending and guarding Coca-Cola's formula in its vault.

Bentonville, Ark.-based Wal-Mart has built a customer base across income brackets. However, it remains known for of its roots are with moderate-income and non-urban Americans.

Some analysts, bankers and members of Congress are wondering if SunTrust and other banks with branches in Wal-Mart will be able to keep them if Wal-Mart obtains a bank charter.

In July, Wal-Mart applied to open a Utah-chartered industrial loan company. Those ILCs can do lending and deposit business, with Federal Deposit Insurance Corp. coverage, and open branches in about 20 states.

Wal-Mart bank won't have branches In its application, Wal-Mart said it has no plans for branches. Wal-Mart also told the FDIC it wants to use its own bank only to process its credit and debit card transactions, thus eliminating fees it pays to banks for those services.

The FDIC plans to hold public hearings on Wal-Mart's application, but has not set dates, said David Barr, spokesman for that regulator.

About 300 banks and credit unions have about 1,150 branches in Wal-Marts around the country, said Martin Heires, a spokesman for the retailer.

"We have no plans to open branches or the change our relationships with our partners," he said. "We think having a branch in our stores of a bank that people know is a great advantage for our customers."

SunTrust has "seen no indication that Wal-Mart wishes to get into banking itself," said Ray Skinner, the bank's in-store banking line of business manager.

But Richard Bove, an analyst at Punk Ziegel & Co. in Pinellas Park, said he would not be surprised if Wal-Mart opens branches in several years, if it gets a bank charter. Or, he said, Wal-Mart might require its bank partners to book some of their deposits and loans from stores at Wal-Mart's bank.

"Everyone shops at Wal-Mart," Bove said, as he dismissed concerns that SunTrust is not a good demographic mix with the retailer.

SunTrust and Wal-Mart do not disclose median income or other demographics on customers.

If labor issues or opposition from local merchants continue to create periodic controversies for Wal-Mart, Bove does not expect an impact on SunTrust.

"I have seen no indication of that keeping people from shopping at Wal-Mart," he said. "I see no reason why it would stop people from doing business with SunTrust there if they like the service."

Memphis, Tenn.-based National Commerce Bank, which SunTrust bought in 2004, had a network of Wal-Mart branches.

SunTrust and Wal-Mart would not disclose details of the agreement, under which SunTrust can open branches, or disclose terms of leases.

SunTrust is interested in Wal-Marts in areas where the bank does not have a branch and land is not readily available, said Paula Pearson, the bank's executive VP for retail and business banking for South Florida.

SunTrust open daily at Wal-Mart SunTrust branches are near the front of Wal-Mart stores. The bank usually has the branches open 54 hours a week, over seven days.

SunTrust has 83 branches in Wal-Marts in five states.

In Florida, the bank has 439 traditional branches and 34 branches in Wal-Marts.

In December, SunTrust bought 11 Wal-Mart branches from Homestead-based Community Bank of Florida.

Those branches, all outside South Florida, had about $42 million in deposits.

"We found that in-store branches did not work as well in those markets as they do in markets where they are a complement to our traditional, brick-and-mortar branches," said Robert Epling, Community Bank's president and CEO.

Community Bank kept Wal-Mart branches in Florida City, Haines City and Lakeland. The bank has traditional branches, where customers do most of their banking, in or near those cities.

A big goal with in-store banks is offering customers a chance to cash a check or make a deposit while shopping, thus giving them added reason to do most of their banking at a nearby traditional branch.

SunTrust's Florida branch network, third largest in the state, gives it the ability to offer that hub-and-spoke service, according to Epling and analyst Bove.

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Mangieri won't shop at Wal-Mart

He makes vow after foe criticizes purchases

By Molly Parker
Copley News Service
February 24, 2006              [back to top]  

PEORIA - Paul Mangieri, a Democratic candidate for state treasurer, vowed not to spend any more campaign money at Wal-Mart following a demand by his opponent Thursday to explain the $1,300 he spent at the "anti-union company that routinely ships American jobs overseas."

At a news conference in Peoria Thursday, primary opponent Alexi Giannoulias, vice president and senior loan officer of Broadway Bank in Chicago, said the campaign money Mangieri spent at the Galesburg Wal-Mart was a "slap in the face to the working men and women of our state."

When first told of the announcement, Mangieri, currently the Knox County state's attorney, declared, "I think we're into the silly season now."

"My opponent is just jealous because I've been endorsed by the (Illinois) AFL-CIO and just about every other union and he has been endorsed by none," Mangieri said, adding, "He's the son of a millionaire. His idea of discount shopping is going to Gucci."

But when told officials at the Illinois AFL-CIO were also disappointed that he used campaign cash at Wal-Mart, Mangieri said he would be more considerate as to where he shops.

Mangieri's financial records show he spent the campaign money on supplies, promotional items, food and parade candy between 2002 and 2005.

"If it's of concern on any level, we will ensure that not only will we buy 100 percent American-made products, but we will only purchase from union stores," Mangieri said.

He also said he would consider donating the same amount of money to organizations aimed at helping Wal-Mart workers unionize, a suggestion endorsed by the Illinois AFL-CIO.

Of course we're disappointed that any dollars were spent at Wal-Mart by a candidate we endorsed, but that was a couple of years ago and we're hopeful he won't do it again," said Beth Spencer, spokeswoman for the organization.

She added that the AFL-CIO is sticking with its endorsement of Mangieri regardless, noting that members were proud of past positions he has taken as an elected official.

Giannoulias, who does not shop at Wal-Mart, said he's glad to see Mangieri has decided to do the right thing by ending his Wal-Mart shopping sprees.

He retorted, "Maybe he's jealous of me being an experienced financial manager and the only people who have endorsed him have been forced to endorse him."

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Wal-Mart to Offer Improved Health-Care Benefits

By Kris Hudson
The Wall Street Journal
February 24, 2006                 [back to top]

Wal-Mart Stores Inc. sketched out some impending changes to its health-care benefits for employees, including a reduction of the wait period for part-time workers to become eligible and designation of children of part-timers as eligible once their parents become so. The announcement, which was short on details, came as a union-backed activist group, WakeUpWalMart.com, released a scathing report alleging that Wal-Mart cut back on its health-care benefits last year. It also comes as Chief Executive Lee Scott prepares to address the National Governors Association's winter meeting in Washington, D.C., on Sunday. Mr. Scott is expected in the speech to "preview" the changes of Wal-Mart's benefits. The retailer didn't specify when the changes would be put into effect. The company also didn't divulge by how much it will reduce its wait period for part-time employees, currently set at 24 months.

Wal-Mart has been feeling political heat over health care for its enormous pool of workers. Lawmakers in several states are considering bills aimed at forcing large employers, namely Wal-Mart, to spend more on employee health benefits. Such a bill was passed into law by a veto override last month in Maryland, but the Retail Industry Leaders Association has challenged the law in court.

Among the changes, the Bentonville, Ark., company said it would expand the availability of a health-coverage plan with an $11 monthly premium -- its lowest-cost option -- to "at least half" of its 1.34 million U.S. employees by 2007. Availability has been limited. Wal-Mart said it intends to establish health clinics in more than 50 of its 3,900 U.S. stores. The clinics, operated by outside companies, will offer treatment to both employees and the public. It has nine such clinics in four states.

The WakeUpWalMart.com report alleged that the percentage of Wal-Mart's U.S. employees covered by its health-care plans declined by 5% last year. Wal-Mart faulted the figure as a comparison of dissimilar timeframes. Rather, from January 2005 to last month, the retailer's coverage ratio remained flat at about 46%, Wal-Mart said.

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FDIC to mull Wal-Mart Bank application

by Jim Freer
South Florida Business Journal
February 24, 2006                            [back to top]

The Federal Deposit Insurance Corp. on Thursday said it will hold public hearings in April on Wal-Mart Stores' application for federal deposed insurance on its proposed Wal-Mart Bank. A South Florida Congresswoman has been among those calling for the FDIC to deny the retailer's request.

The FDIC said hold hearings, April 10-11, 9 a.m. to 5:30 p.m., in the Washington, D.C., area, and April 25- 26, 9 a.m. to 5:30 p.m., in the Kansas City, Mo., area.

In July, Bentonville, Ark.-based Wal-Mart (NYSE: WMT) applied for FDIC insurance for its bank, which would have a charter from Utah regulators as an industrial loan company (ILC).

Federal laws prohibit non-financial companies from owing banks and most states have similar prohibitions. Utah is one of several states that permit non-financial companies to have ILCs, which can do loan and deposit business similar to banks, but are restricted from opening branches in multiple states.

The Utah Department of Financial Institutions is reviewing an application Wal-Mart filed last year. The world's largest retailer would need approval from both Utah regulators and the FDIC to form a bank.

Even though Wal-Mart's application states it does not plan to set up a multiple-branch banking business, its application has drawn criticism from numerous elected officials, regulators, banks and consumer-oriented groups.

They say they are concerned the company might attempt to expand its banking services, taking business from small banks in many states, and use a combination of banking and retailing to take business from larger banks and rival retailers.

Former Federal Reserve Chairman Alan Greenspan, Sen. Hillary Clinton, D-N.Y., and U.S. Rep. Debbie Wasserman Schultz, D-Pembroke Pines, are among public officials who have asked the FDIC to not approve Wal-Mart's application.

In its application to the FDIC, Wal-Mart said it would use its own bank only to process credit and debit card transactions at its stores. Wal-Mart now pays banks fees to process those transactions.

If Wal-Mart gets a bank charter, it would need to file a new application to be able to add branches beyond its original office in Salt Lake City. Currently, Wal-Mart allows other banks to have branches in its supercenters.

For example, SunTrust Bank has an agreement to open branches in four Wal-Mart supercenters scheduled to open in South Florida during the second half of the year.

Two credit unions also lease branch space in South Florida Wal-Marts.

Dade County Federal Credit Union has branches in seven Wal-Marts and Miramar-based Tropical Financial Credit Union has five of its 20 South Florida branches in Wal-Marts.

About 300 banks and credit unions have about 1,150 branches in Wal-Marts nationwide.

Those financial institutions should not fear that Wal-Mart will terminate leases and force them out if it gains approval for its own bank, Wal-Mart spokesman Martin Heires said.

"We have no plans to open branches or change our relationships with our partners," he said. "We think having a branch in our stores of a bank that people know is a great advantage for our customers."

All contents of this site © American City Business Journals Inc. All rights reserved

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Wal-Mart unveils plans to expand health benefits

By Kristi Arellano and Tom McGhee
The Denver Post
February 24, 2006                                     [back to top]

Wal-Mart on Thursday said it will expand health care coverage to more employees and reduce the time it takes for part-time workers and their children to qualify for coverage. Critics immediately branded the announcement as a publicity stunt, and employees said they were unsure what kind of impact the changes would have.

Bentonville, Ark.-based Wal-Mart is Colorado's largest private employer. It reported 24,274 employees in the state in January.

The retailer has battled criticism over its health care polices. It made the announcement in advance of chief executive Lee Scott's scheduled Sunday speech at the National Governors Association Winter Meeting in Washington.

Scott is expected to renew Wal-Mart's criticism of bills filed in at least 22 states, including Colorado, that would force the retailer to spend more on health care. Scott said Thursday that employers cannot continue to meet the rising costs of health care and urged a government- business partnership to find an answer.

In a preview of Scott's comments, Wal-Mart officials said the company intends to expand its $11-a-month health care plan to at least half its employees by next year. That plan costs less than half the price of Wal-Mart's other coverage plans, is available only in certain stores and is the result of special deals with medical providers.

Additionally, the company said it will shorten the time it takes for part-time workers to qualify for coverage, and will expand those benefits to include their children for 30 cents more per day.

Currently, part-time workers must work two years before qualifying for benefits, and their children are not eligible.

"Wal-Mart's so-called value plan remains a raw deal for Wal- Mart employees because of its hidden fees and high deductibles," said Nu Wexler, a spokesman for Wal-Mart Watch, a union-backed group that opposes the company's business practices.

A company spokeswoman said Wal-Mart has not determined what the new waiting period will be.

The announcement marks the second time in six months that the world's largest retailer has moved to improve health benefits, but critics said it still isn't enough.

Wake Up Wal-Mart, another group that is critical of Wal- Mart, on Thursday released an analysis of the company's health care spending. The group said it showed that Wal-Mart failed to provide health coverage to more than 57 percent of its employees last year, compared with 52 percent the year before.

"Talk is cheap," said Dave Minshall, a spokesman for United Food and Commercial Workers Local No. 7, which unsuccessfully tried to organize workers at a Wal-Mart tire and lube center in Loveland.

"The facts speak for themselves. Wal-Mart's own documents show their health care is getting worse, not better," he said.

A Wal-Mart spokeswoman said 615,000 employees were enrolled in company health plans as of January, versus 568,000 a year earlier. Wal-Mart has 1.3 million U.S. employees.

"For what they pay us, it's not worth it," said four-year employee Vernita Huff of the health care coverage.

Huff, a greeter at the Wal- Mart store in Denver's Stapleton neighborhood, said she had not heard the details of Wal-Mart's proposed plan changes. She earns $10 an hour and has coverage through her previous employer, she said.

Another employee, 19-year- old Rene Ventura, said his $8.80 hourly wage doesn't go far enough to pay for the company's health plan.

"I don't know if this will help," he said.

Customers said they would support any move by the retailer to improve its health care coverage.

"If I have to pay an extra quarter for my milk, if that helps cover the cost, I would do it," said Sandy Baack, 45. "I like the fact that the stores are economical, but if they're not paying health care coverage, that concerns me."

Wal-Mart also said Thursday that it intends to open 50 more in-store health care clinics.

Maryland recently became the first state to require Wal-Mart to increase its health care spending or pay the difference to the state's Medicaid fund. The law is being challenged by the Retail Industry Leaders Association.

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Wal-Mart bank plan set for federal hearing

by Josh Drobnyk
Baltimore Business Journal
February 24, 2006                            [back to top]

The much-anticipated public hearings to consider Wal-Mart's application for federal deposit insurance are set for April 10 to 11 in Washington, D.C., the Federal Deposit Insurance Corp. announced Thursday.

The application, which concerns the retail giant's proposal to establish an industrial loan bank in Utah, has elicited more than 1,900 comment letters since it was submitted in July. Many of them pleaded with regulators to reject the plan.

Wal-Mart officials say the bank would simply be a back-office operation aimed at saving the company millions of dollars by cutting down on fees paid along with credit and debit card transactions.

"It is really something that the customer won't see," Wal-Mart spokesman Marty Heires said in an interview last month. "Our proposal is to operate a small bank that will be housed in a sixth floor office suite."

But bankers throughout the country worry the retailer will move into retail and commercial banking and put smaller banks out of business.

"Wal-Mart will establish banking offices in its stores and cause competitive problems for local banks the same way it has for local retailers," Walter Ayers, the Virginia Bankers Association president, wrote in a letter to the FDIC. The letter was signed by the heads of 25 other state bankers associations.

Wal-Mart is no stranger to in-store bank branches. About 1,100 -- 35 percent -- of Wal-Marts have branches of various banks inside their stores, according to Heires.

The exact location for the hearings, from 9 a.m. to 5:30 p.m., has not been set. Another two-day hearing is scheduled to take place in Kansas City, Mo., in late April.

All contents of this site © American City Business Journals Inc. All rights reserved.

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Wal-Mart Says It Will Improve Health Benefits

By Ylan Q. Mui
Washington Post
February 24, 2006                  [back to top]

Wal-Mart Stores Inc. announced plans yesterday to upgrade its health care benefits during a barrage of criticism from labor unions and state legislators who say the world's largest retailer does not provide adequate coverage for its low-wage employees. One of the most significant changes is a reduction in the two-year waiting period for part-time workers to become eligible for benefits. Mona Williams, a Wal-Mart spokeswoman, said yesterday that the new waiting period has not been determined.

The company also said it would allow children of part-time workers to become eligible for coverage, and that it would extend its Value Plan, which offers health insurance for $11 per month, to half of its employees by next year.

Critics of Wal-Mart took the news as a sign that the retailing giant has begun to respond to attacks calling it stingy, but they remained skeptical of the company's intentions.

"Wal-Mart's proposed changes are clearly designed to try and salvage a faltering public image, rather than make substantive changes to improve health care benefits for its employees," said Paul Blank, campaign director for WakeUpWalMart.com, a group backed by the United Food and Commercial Workers International Union.

Wal-Mart chief executive H. Lee Scott Jr. is expected to discuss the changes Sunday at a meeting in Washington of the National Governors Association. The complete package will be announced over the next several months.

"In the weeks ahead, we're going to take significant steps to make our health benefits even more affordable and accessible to the working families we employ," Scott said in a written statement yesterday.

Wal-Mart's health care plan has become a hot-button issue across the country in recent months. In January, Maryland passed legislation, often referred to as the "Wal-Mart bill," requiring companies that employ more than 10,000 people to spend 8 percent of their revenue on health care or make a contribution to the state's insurance program for the poor. Wal-Mart, which employs 17,000 Marylanders, is the only company in the state that does not meet that requirement.

Two dozen states are considering similar legislation, according to the AFL-CIO. Proponents assert that the bills are needed to prevent Wal-Mart from shifting its health care costs to states. A report released yesterday by WakeUpWalMart.com estimated that 300,000 Wal-Mart workers and their families received publicly funded health care in 2005 at a cost of $1.37 billion, through programs such as Medicaid and the State Children's Health Insurance Program.

"I think the health care bills we are pushing around the country have had tremendous impact on Wal-Mart," said Naomi Walker, state legislative director for the AFL-CIO.

But Scott said that private businesses should not be responsible for solving the nation's health care issues. He is expected to ask government officials on Sunday to work with business leaders on a solution.

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Wal-Mart at Turning Point As It Tries New Ways to Keep Growing

By MARCUS KABEL
The Associated Press                [back to top]

BENTONVILLE, Ark. - After watching its sales momentum surge over the past four decades, Wal-Mart Stores Inc. now finds it has to work harder to grow with 3,900 stores nearly saturating the U.S. market, it's the company's sales strategy, not new retail outlets, that will determine Wal-Mart's future.

Analysts are optimistic the nation's largest retailer will get the job done even if the company isn't so sure itself. Wal-Mart is offering a broader selection of high-end items and sprucing up its stores to make happier customers, but has set a yearly earnings target below that of people who watch the world's largest retailer.

In a world where most Americans already live near a Wal-Mart, Chief Executive Lee Scott is betting that trendier merchandise and a more appealing shopping environment will boost sales faster than simply opening new Supercenters can accomplish.

The company is clearly under pressure: Although this past week Wal-Mart reported fourth-quarter earnings were up 13.4 percent, its stock slipped as revenue fell short of Wall Street projections and its profit outlook also disappointed the market. The stock ended the week at $45.45, near the low end of its 52-week range of $42.33 and $53.49.

Many industry analysts expect Wal-Mart to have a good year as it continues to deploy its new strategy in spite of higher energy prices that are pinching the spending power of its core lower-income customers and that have driven up Wal-Mart's own costs.

"The outlook for them this year is the best it's been in about the last three years," said Richard Hastings, senior retail analyst at Bernard Sands in New York.

Hastings noted that Wal-Mart since late last year has been stocking its stores with trendier women's fashions and higher-end home electronics. The company also is in the process of renovating 1,800 stores, widening aisles, lowering shelves, sprucing up floors and cleaning up restrooms.

The aim is not so much to get new customers in the stores but to lure millions of consumers who shop for basics like groceries and paper goods to the aisles that offer the more fancier clothes, electronics and home furnishings. The new merchandise ranges from the Metro 7 line of urban-style women's fashions to fish and shrimp certified to have been raised or caught in ways that do not harm the environment.

Analysts said the company needs these changes to help it reclaim sales lost to smaller, more upscale rival Target Corp.

"They've got to create a better shopping experience, better merchandising, and really try to sell more things to those selective shoppers in their stores," said Sandra J. Skrovan, vice president and head of Wal-Mart research at consultant Retail Forward Inc. "They're in a transitional period."

Scott told analysts in October that 86 percent of Americans shop at Wal-Mart at least once a year, but the higher their income bracket, the less likely they are to leave the grocery or staples departments.

Fourth-quarter results, covering a holiday season when some of the new products were in place, showed Wal-Mart seems to be headed in a good direction.

"While it remains early days, change is in the air and in the results at WMT," Goldman Sachs analyst Adrianne Shapira wrote in a research note. Shapira said Wal-Mart was conservative in setting a target for earnings per share this year of $2.88 to $2.95, below Wall Street expectations, and put her own estimate at $2.94, up 12.6 percent from the past year.

But problems remain, not the least of which is Wal-Mart's size. The chain has three times as many stores as Target and plans about 1,500 more stores. That makes it harder to keep stores looking fresh, and to ensure that new displays, products and styling are in place throughout the company.

"They're paying attention to their problems. They are aware that when it comes to store-level execution there are problems and they're paying attention to it," Hastings said.

Eduardo Castro-Wright, president and chief executive of Wal-Mart USA, told analysts this past week a reorganization of the retailer's regional structure last year gives more power and responsibility to district and store managers and will "close the gap that exists between strategy and performance."

While Wal-Mart is trying to raise its profile among more affluent shoppers, it's also trying to improve its image with workers and the public. Union-backed critics continue to hammer away at Wal-Mart for what they say are substandard wages and health benefits, and organized labor is pushing bills in about 30 states that would force Wal-Mart to spend more on health coverage.

Scott announced this past week that the company will expand lower-cost coverage for employees this year, the second improvement in health benefits in six months. The company said 615,000 of its 1.3 million U.S. workers were on Wal-Mart health plans as of January, versus 568,000 a year earlier.

"More consumers don't just see Wal-Mart as a business, they see it is a social and political issue. Until Wal-Mart changes substantially, those consumers they are going after, who can make a choice about where they shop, will avoid Wal-Mart," said Chris Kofinis, spokesman for WakeUpWalMart.com, a union-funded campaign group.

The fact that Wal-Mart has to find new ways to grow is an outgrowth of its own success, said Charles Fishman, author of "The Wal-Mart Effect: How the World's Most Powerful Company Really Works and How It's Transforming the American Economy."

"Once you have saturated the country and soaked up enormous quantities of market share, it gets hard to grow in this country faster than the economy and general spending grow," said Fishman, a senior editor at Fast Company magazine.

Fishman's book is rich with statistics illustrating Wal-Mart's dominance. According to market research he commissioned, 53 percent of Americans live within five miles of a Wal-Mart and 90 percent live within 15 miles.

Wal-Mart accounts for 10 percent of the U.S. retail economy, 15 percent to 16 percent of all groceries sold, 25 percent of health and beauty products and a quarter of all toys, Fishman wrote.

But it is hard for Wal-Mart to grow substantially based on just those kinds of products, Fishman said. Consumers may have switched to Wal-Mart to buy paper towels or dog food, but they're not going to buy twice as much dog food just because the price is lower.

"People understand the whole low price idea, they know where to get low prices. But if they're looking for something that has a little extra quality, a little extra design, a little extra service, they're looking at places besides Wal-Mart," Fishman said.

"That's why Target has been running twice the same-store sales as Wal-Mart has for months and months," he said.

Wal-Mart's same-store sales, which measure performance at stores open at least year, were up 3.2 percent for the fiscal year that ended Jan. 31, excluding Sam's Clubs. Target posted 5.6 percent growth.

Copyright 2006 The Associated Press.

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Update 2: Wal-Mart to Offer Improved Health Benefits

By Marcus Kabel
Forbes.com
Associated Press
February 23, 2006                [back to top]

Wal-Mart Stores Inc., under attack for its health care coverage for its employees, plans improvements that would include expanding the availability of its lowest cost plan and shortening the waiting periods to enroll part-time workers and their children. At the same time, Wal-Mart Chief Executive Lee Scott said Thursday that employers cannot continue to meet the rising costs of health care and urged a government-business partnership to find an answer.

The announcement marks the second time in six months that the world's largest retailer has moved to improve health benefits and comes ahead of Scott's speech Sunday about the issue to the nation's governors, who are looking for ways to cap rising costs for taxpayer-funded health plans that cover the uninsured. Details of the new health benefit plans are expected to be unveiled in the coming months.

Scott is also expected to renew Wal-Mart's criticism of bills filed in at least 22 states that would force the retailer to spend more on health care. Maryland has become the first state in the nation to require Wal-Mart to spend more on employee health care or pay the difference into the state's Medicaid fund. The Retail Industry Leaders Association has challenged the law in court.

"The soaring cost of health care in America cannot be sustained over the long term by any business that offers health benefits to its employees," Scott said in a statement released ahead of the speech to the National Governors Association.

Wake Up Wal-Mart, one of Wal-Mart's harshest critics, called the retailer's attempts to improve its health care plan as "nothing more than a facade."

"Wal-Mart's proposed changes are clearly designed to try and salvage a faltering public image, rather than make substantial changes to improve health care benefits for its employees," said Paul Blank, campaign director for Wake Up Wal-Mart in a statement.

In fact, the labor-backed group released a report Thursday that showed the health care issue at Wal-Mart is getting worse - Wal-Mart failed to provide health coverage to over 57 percent of its employees last year, up from 52 percent the previous year. The group said the report is based on new analysis of Wal-Mart's reported data of its health care spending.

Under mounting criticism from organized labor and other groups, Wal-Mart last fall offered new lower-premium insurance aimed at getting more of its work force on company plans.

The company said premiums of $23 a month - and as low as $11 in a select number of locations with special deals with medical providers - helped get 70,000 workers enrolled in Wal-Mart plans for the first time.

Wal-Mart had 615,000 employees enrolled in company health plans of January versus 568,000 a year earlier, Wal-Mart spokeswoman Sarah Clark said. It has 1.3 million U.S. employees.

Scott said new steps would include expanding the $11 monthly premium to make it available to half of all U.S. employees by next year and shortening eligibility periods for part-time workers and their children from 24 months. Wal-Mart is still deciding what the new wait will be, a company spokeswoman said.

Wal-Mart will also expand a trial run of in-store clinics, which are aimed at providing lower cost non-emergency health care to the public, to more than 50 stores this year from about a dozen now. Several retailers are testing the idea as an alternative to long waits at doctor's offices for minor ailments and tests.

Wal-Mart shares rose 22 cents to close at $45.70 on the New York Stock Exchange. Its shares have traded in a 52-week range of $42.33 to $53.49.

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Big Box Brawl: How mild-mannered Nashuans battled Wal-Mart and won

By John “JaQ” Andrews
HippoPress (NH)
February 23, 2006                      [back to top]

The Nashua Planning Board narrowly denied Wal-Mart’s site plan for a supercenter at the current site of Building #19 last month. After charging through Conservation Commission and Zoning Board challenges, Sam Walton’s retail giant looked like it was on its way into town. Many consider the company just plain evil, but Wal-Mart would tell you they’re simply a business. After all, doesn’t Magneto have perfectly good reasons for fearing non-mutants? Is Lex Luthor really a villain, or just a multimillionaire hanging out with high school farm boys?

All that stood in Wal-Mart’s way was a group of concerned citizens who didn’t want their traffic snarled and their water polluted. They banded together and, with a supporting cast numbering in the hundreds, did battle for their way of life.

This is their story.

Paul Johnson (Alan Alda) Moderator, Citizens Action for Southern New Hampshire Superpowers: leadership, research When the final vote came down on Jan. 19, rejecting Wal-Mart’s site plan, Johnson was giddy.

“I sat there in shock,” Johnson said, “only because we’d had the ball yanked away so many times.” He’d been expecting the 4-3 vote for weeks, having closely analyzed the comments of all board members to see which way they were leaning. The vote had been delayed several times, and it looked like the hearings might be extended again. There was even a sealed envelope given to each board member by city staff. According to Johnson, the envelope contained new testimony, though little new information, from the applicant. Board members never opened the envelopes prior to voting.

As head of the team, Johnson served as the voice of the organization, the client of record for their attorney and, perhaps most importantly of all, negotiator. Not with Wal-Mart — within the group of people fighting to keep Wal-Mart out.

“I spent a lot of time truly being a centrist peacemaker,” Johnson said. The groundswell of opposition to a Wal-Mart Supercenter at 420 Amherst St. inevitably brought out people with a variety of different perspectives on the matter. It was an “enormous challenge,” he said, keeping everyone on the same page as far as what strategies to pursue, what to say to the media, how to persuade Planning and Zoning Boards not to approve the store and how to recruit more supporters.

“The fact that it was Wal-Mart certainly brought more energy from some quarters,” Johnson said, but he didn’t believe there was anyone involved who cared nothing about the potential water pollution or traffic problems.

“The water is clearly what got us motivated,” Johnson said, “but it was the traffic that everybody was going to relate to.”

Jocelyn Demuth (Janeane Garofalo) CASNH coordinator Superpowers: button distribution, rabble-rousing Citizens Action served as the main organization behind the opposition effort, but many people against the project weren’t members. To get everyone on the same track and present a unified front, Jocelyn Demuth jumped into action.

“I kind of became public outreach coordinator,” Demuth said. “What that meant is maintaining and developing a large, now it’s a very long, e-mail list of people who wanted to be kept abreast of what was going on.”

Whether it was passing around clipboards, organizing a yard sale or gathering names from www.cleanwaternotwalmart.com, Demuth became the communications node that opponents relied upon for their information. When Wal-Mart’s representatives would cancel their appearance “at the last minute” — usually because a full board was not available — Demuth would be standing at the entrance to City Hall, letting people know before they climbed three flights of stairs to the auditorium. She also wrote a guide for testifying in front of a municipal board.

Demuth credits Nashua citizens for getting involved.

“If the town hadn’t cared, it would be built,” she said. “I don’t know a hundred people, a hundred fifty people that I could get to come to meetings. The town has to care or they won’t come and they won’t speak.”

Sue Newman (Stockard Channing) Activist Superpowers: letter-writing For months, Sue Newman wrote impassioned letters to local newspapers opposing the new supercenter.

“I never thought that the proposal would get as far as it did,” she said. “Between environmental issues and water issues, the traffic thing ... I guess that just kept jumping out at me. And I thought surely people would understand the traffic hoo-ha.”

As she wrote letter after letter, she encouraged others to write as well. When she finally hooked up with CASNH, she took to posting flyers and distributing lawn signs.

Barbara Pressly (Dame Judi Dench) Former state senator Superpowers: righteous indignation, legislation-fu Senator Pressly was invited to talk to CASNH about Nashua’s efforts to purchase Pennichuck Corporation. She’s been a supporter of the acquisition in order to protect the regional watershed and drinking water supply, a concern that the Wal-Mart plan brought up as well.

As a former state legislator, she saw herself as an advisor and strategist for the opposition group. She was also charter chair of the Historic District Commission here in the city, so she knew local land use laws well. So, is she a Wal-Mart shopper?

“Sure!” Pressly said. “I mean, I shop there when I need something that they have. The bottom line is, I have yet to meet a single person who believes that any merchant or any company of that intensive a use is appropriate on that site ... If they can find a place that the traffic can handle it and it doesn’t impact our water, I wouldn’t object.”

Jed Callen (Bill Pullman) Attorney with Baldwin, Callen & Ransom Superpowers: persuasion By the climax of Planning Board hearings in January, nearly 250 people were involved in the effort to prevent a supercenter’s being built at 420 Amherst St. They all had their own opinions, and many offered testimony. To summarize key points, however, and to focus their core legal arguments, they needed a point man. That man was Attorney Jed Callen.

Callen’s law firm, based in Concord, specializes in land use law around the state of New Hampshire. Callen himself has represented many groups of people who would be adversely affected by particular developments, so this wasn’t unfamiliar territory for him. There was one new challenge, though.

“This was my first Wal-Mart, which was an education in itself,” he said. His past opponents have included gravel pits, cellular communications towers and junkyards. Few have had the corporate backing Wal-Mart brought to the proceedings.

“We very studiously stayed away from things that were not relevant to the land use issues,” he said. When speaking before the Zoning and Planning Boards, Callen did not talk about Wal-Mart’s corporate policies, health care benefits, international trade relationships or anything else of interest to someone against Wal-Mart simply because it was Wal-Mart. It wouldn’t help their case of protecting this one particular piece of land.

One thing that surprised Callen was the amount of time this case spent in front of city boards. If anything, he said, he expected it to take “many months.” In similar cases in other towns, a board might schedule discussion of only one aspect of an application for a given night. Not only does this shorten meetings, it reduces cost for all those involved, by not requiring all paid consultants to be present at all meetings.

“For the most part the Planning Board was extremely civil and attentive and focused,” Callen said. But the last few meetings were marred by questions of procedure and professionalism as the applicant submitted more information to the board after the hearing was closed. “I was extremely distressed that that seemed to fall apart at the end.”

Charles Friou (Ian McKellan) Past CASNH moderator & “elder statesman” Superpowers: Citizens Action for Southern New Hampshire formed from the remnants of the Howard Dean presidential campaign in the region. It’s since welcomed activists of all political stripes, though there’s still a discernable lean to the left. Its main focus has been protecting the local environment.

Charles Friou served as moderator of Citizens Action until last year. He doesn’t shrink from the environmentalist label. His home features passive solar heating — though he said it was mainly an economic decision to buy it, and newer building techniques are even more efficient. Paul Johnson refers to him as the group’s “elder statesman,” a term which drew a hearty laugh from Friou when he heard it. The Wal-Mart fight, though, he took seriously.

“When we got involved, we were getting involved in something whose dimension we didn’t know,” Friou said.

The matter first came to his attention with the shuffling of two people off the city’s Conservation Commission in early 2005. Those two people, he learned, had been opposed to a Wal-Mart Supercenter at 420 Amherst St. He wouldn’t go so far as to say they were pushed off — one resigned and one was not reappointed at the end of her term.

Wal-Mart’s earlier site plan, which called for a much larger store, never made it past a few boards in February of 2005. When the new plan came to light, chopping off a quarter of the proposed square footage, Friou went over it with a critical eye. He found studies of existing Amherst Street traffic that were inconsistent with earlier studies — including the one referenced in the previous application.

“It was clear to me ... they’ll say almost anything to achieve their goal,” he said. Those traffic studies were questioned by the Planning Board as well, and ended up being the key point convincing four members to vote against the site plan.

Even if traffic won the day, Friou has other concerns. He doesn’t want zoning and watershed protection laws to be “chipped away” by boards granting small exceptions here and there.

“The water issue is real, and the city has to do far more than it is” to monitor and ensure the safety of the water supply, he said. “There is not the attention that should be paid to that.”

Dr. Robert Roseen (Matt Damon) UNH researcher Superpowers: stormwater modeling As a laymen group, Citizens Action needed to pull in some scientific talent to counter the expert testimony of Wal-Mart’s hired guns. Their own hired gun was Dr. Robert Roseen, a research engineer for the Environmental Research Group at the University of New Hampshire. He’s the Director of the UNH Stormwater Center — which just happens to be the premiere spot in the world for studying the effects of water runoff from parking lots.

Citizens Action first contacted Roseen in May of 2005, after the first supercenter proposal had been rejected, but another was on the way.

“The conversation began back then as, would I be interested in evaluating the stormwater management plan?” Roseen said. It was never his intention to design an equitable plan for treating and cleaning the water of oil, antifreeze, chemicals and other pollutants brought in by the sharp increase in traffic. His role was to critique Wal-Mart’s plan, and he found it lacking.

He emphasized that his analysis referenced peer-reviewed scientific studies of the equipment proposed, not manufacturer or industry claims. His “Roseen Report” became a central document in the opposition’s arsenal.

Roseen has 13 years’ experience in water resource studies, including hydrology and hydraulics evaluations, environmental systems analysis and site design for stormwater treatment devices. Stormwater management has been his primary focus for the last four years. At UNH, a one-acre research facility was built to study more than a dozen different types of management systems on an existing commuter parking lot.

His report did come into question when one calculation included figures that were off by a factor of 1,000. That error occurred on both sides of an equation, Roseen said.

“It did not change conclusions at all,” he said, “so what the Planning Board saw was correct.”

He was also asked to explain what “parts per million” meant when another testifier apparently used the term incorrectly, and felt that he had been painted as a sloppy scientist when it wasn’t even his testimony he was correcting. The fact that most board members were satisfied with Wal-Mart’s water cleansing plans, especially given the existence of an artificial treatment plant, left him further frustrated.

“I felt like what I learned from that process is that it has less to do with the quality of the study and more to do with the quantity of the study,” Roseen said. “Had we been Shell Oil, we could’ve had 12 specialists too.”

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Shocking Report Estimates Wal-Mart Health Care Crisis Cost Taxpayers Nearly $1.4B in 2005; Projects Cost of $9.1B Over Next 5 Years

US Newswire
02/23/2006              [back to top]

WASHINGTON, Feb 23, 2006 (U.S. Newswire via COMTEX) --Today, WakeUpWalMart.com, America's leading campaign to change Wal-Mart, released a new report detailing the "Wal-Mart Health Care Crisis." "The Wal-Mart Health Care Crisis" is the result of Wal- Mart's failure to provide affordable health care to over half of its workforce which forces, according to estimates, several hundred thousand Wal-Mart workers and their families onto taxpayer-funded public health care.

In fact, based on Wal-Mart's own documents, published on WalMartfacts.com in January 2006, the percentage of Wal-Mart workers with company health care decreased by 5 percent -- from 48 percent to 43 percent. Therefore, in 2005, Wal-Mart admits it failed to provide company health care to 57 percent of its workforce, leaving over 775,000 Wal-Mart workers and their families without company health care. The new number is far worse than has been previously reported and is contrary to recent public statements by the company.

WakeUpWalMart.com issued a new report today after conducting a full analysis of all reported data on Wal-Mart's health care spending. The report, titled "America Pays, Wal-Mart Saves: The Growing Cost of the Wal-Mart Health Care Crisis," estimates that, in 2005, nearly 300,000 Wal-Mart workers and their family members depended on taxpayer-funded public health care at a total cost to American taxpayers of $1.37 billion.

The most striking finding in the report is the projected cost to American taxpayers of the Wal-Mart Health Care Crisis if Wal- Mart successfully completes its publicly stated goal of building 1,500 additional stores. Based on the current cost and the future store growth, the report projects the Wal-Mart Health Care Crisis will cost American taxpayers approximately $9.1 billion over the next 5 years, 2006-2010.

"The Wal-Mart health care crisis is real, it's growing, and the cost to taxpayers is enormous. Wal-Mart's dirty little secret is to force taxpayers to pay nearly $1.4 billion in their health care costs, while Wal-Mart pockets $11 billion in profits. Wal- Mart will cost American taxpayers more than $9 billion over the next five years in health care costs alone" said Paul Blank, campaign director for WakeUpWalMart.com.

Another startling finding in the report is the fact that Wal- Mart's health care spending per worker actually declined by 3.5 percent during the period of 2003-2004, according to Wal-Mart's latest filing with the Internal Revenue Service. This is notable for two reasons: 1) national health care spending per worker for the rest of America rose by 7.6 percent during this period, and 2) Wal-Mart's repeated public statements about its health care spending and health care coverage do not reflect the reality of Wal-Mart's own data submitted to the IRS. More detailed figures for Wal-Mart's health care spending will be released when Wal- Mart files its Form 5500 for 2005.

"Wal-Mart ought to be ashamed. While health care costs and the number of uninsured are rising, Wal-Mart feeds America's health care crisis by actually cutting back on its health care spending. It's outrageous and the American people and their lawmakers will not tolerate such irresponsibility in corporate America," added Paul Blank.

The report paints a disturbing picture of the scope and cost America bears because of the Wal-Mart health care crisis. Among the findings:

-- Of a total workforce in the Unites States of 1.39 million in October 2005, 57 percent or 775,000 Wal-Mart workers, had no company health care. The actual percentage of Wal-Mart workers without company health care increased by 5 percent in 2005.

-- The cost of the Wal-Mart health care crisis for 2005 is estimated at $1.37 billion. A previous study, by Professor Michael Hicks from the Air Force institute, estimated that each Wal-Mart employee increased Medicaid expenditures by $898. For Wal-Mart's 2005 work force, this would cost taxpayers $1.24 billion.

-- Wal-Mart's health care expenditures per worker actually declined by 3.5 percent during the period of 2003-2004, according to Wal-Mart's latest filing with the Internal Revenue Service.

-- Based on Wal-Mart's growth projections for 2006-2010, the Wal-Mart Health Care Crisis will cost taxpayers an estimated $9.1 billion over the next five years.

-- Despite Wal-Mart claiming only 5 percent of its workforce is on public health care assistance, based on the available data, it is estimated Wal-Mart averages 13 percent of its workforce on public health care assistance. The 13 percent figure is 3.25 times higher than the national average of 4 percent for all employers and 2.6 times higher than the 5 percent average Wal- Mart states publicly.

-- Based on the data from the states who have released dependent care numbers, it is estimated that for every 12 Wal- Mart workers, one dependent of a Wal-Mart employee is on a taxpayer-funded public health care program. According to Wal- Mart's own internal health care memo, Wal-Mart believes 27 percent of its employees' children are using state Medicaid or Children's Health Insurance Programs. In Georgia, for example, nearly 10,000 children of Wal-Mart workers are enrolled in the state PeachCare program - nearly 14 times more than any other employer.

-- Nationwide, it is estimated that 183,382 Wal-Mart workers and 112,768 family members of Wal-Mart workers are forced onto taxpayer-funded public health care assistance. The total number of Wal-Mart workers and family members who are part of the Wal- Mart health care crisis is 296,150.

-- For 2005, ending the Wal-Mart Health Care crisis would provide an extra $1.37 billion in additional funding for national and state health care programs. In terms of programs, the $1.37 billion in federal and state tax dollars currently going to subsidize Wal-Mart could be used to reinstate proposed funding cuts in the 2007 federal budget of over $1 billion in health care grants to states.

The complete report, "America Pays, Wal-Mart Saves" is being released as part of an upcoming national health care campaign initiative called "Stop the Wal-Mart Health Care Crisis." The latest campaign initiative by WakeUpWalMart.com will officially launch nationwide with events in 12 states on February 28th. Additional state-by-state estimates of the cost of the Wal-Mart Health Care Crisis will be released on February 28th. The complete "America Pays, Wal-Mart Saves" health care memo is available for download at http://www.WakeUpWalMart.com.

WakeUpWalMart.com is America's leading campaign to change Wal- Mart. With over 182,600 supporters in all 50 states, WakeUpWalMart.com is building the largest grassroots movement to change a corporation in history.

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Wis. Court Denies Status to Wal-Mart Suit

leadingthecharge.com
23 February, 2006                       [back to top]

MADISON, Wis. - A state appeals court on Tuesday denied class-action status to a lawsuit brought by Wal-Mart Stores Inc. employees who claimed they were forced to work through breaks.

Similar cases have been filed across the country with varied success. A California jury awarded $172 million to Wal-Mart workers who were illegally denied lunch breaks last year, and Wal-Mart settled a similar case in Colorado for $50 million. Others have been denied class-action status.

"This would require not only the examination of each and every member of the proposed class, but, also, their co-workers and supervisors, and in some or many cases, their friends and family," the court wrote in upholding a circuit court judge‘s ruling.

The ruling means thousands of workers with similar claims cannot join the lawsuit filed by three Wal-Mart employees or benefit from any monetary settlement in the case.

If allowed to stand, the ruling means "Wal-Mart will not be called to account in a courtroom for not granting their employees what they promised them," he said.

"We work hard to pay hourly associates for every minute they work, and they are encouraged and obligated to report any off-the-clock work to upper management," Clark said in a statement. "A notice with instructions on how to do this is posted beside every time clock."

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Wetland mysteriously filled in: 7.8-acre site is proposed home for new Wal-Mart

Spokesman-Review
02/22/2006                      [back to top]

A chunk of land at 44th Avenue and Regal Street that could someday house a Wal-Mart is the site of a whodunit of sorts.

Neighbors recently pointed out that a wetland on the west end of the nearly eight-acre South Hill parcel is missing.

The small patch, which harbored reed canary grass and served as a natural filter for phosphorous, oil, antifreeze and other pollutants, was the apparent victim of human meddling.

Land owners can move up to 50 cubic yards of dirt without a grading permit, but filling a wetland requires city approval.

"We find people get themselves into trouble because they don't consult with the experts before starting the bulldozer," said Chris Merker, a wetland biologist for the Washington State Department of Ecology.

While no one is stepping up to take the blame for the work on the South Hill property, a number of theories are floating around.

Lamar Fielding, a retired educator and neighbor in the area, thinks the wetland disappeared during the city of Spokane's Regal Street upgrade last summer, when contractors piled mounds of dirt on the property.Merker said his "best guess" is that the wetland was filled in the past couple months when grading was done there. The land is owned by developer Harlan Douglass.

Wal-Mart Stores Inc. was quick to distance itself from the wetland quandary. "We weren't a part of that one. Whatever happened is between Harlan (Douglass) and the contractor and the contractor and the city," said Jennifer Holder, a Seattle spokeswoman for Wal-Mart, which is based in Bentonville, Ark.

Steve Haynes, a city planner for Spokane, said workers on the city's street project had nothing to do with the wetland's disappearance.

Based on ongoing reviews of the property, Haynes said his department believes the wetland was filled two or three years ago, before Douglass purchased the land. Douglass was unavailable for comment, as was former property owner Dr. Ralph Berg.

"We don't know specifically who, or why that was done. It just happened," Haynes said, adding that whoever illegally filled the wetland may have also disrupted a drainage route.

Haynes couldn't say what the penalty was for filling a wetland but said the city likely wouldn't try to track down the person responsible.

Merker inspected the property last week for the city, which is considering a request to subdivide the property. He recommended that the landowner be required to replace the filled-in wetland and that the area be inventoried because the east side of the property contains what appears to be another wetland.

"My feeling is it should be treated as a wetland unless there's compelling evidence to say that it's not," Merker said of the possible new wetland.

The slice of land at 44th and Regal has changed dramatically over the years. Today, surrounded by homes and commercial developments, its front face resembles a preconstruction site more than a habitat. Many of the trees have been cleared.

But fifteen or so years ago, said Fielding, who has lived in the area since 1964, much of the site was covered with water.

"At one time it was wetland, believe me. It was wet year-round over there," Fielding recalled.

During that time members of Park Heights Baptist Church looked at buying the property to build a new church. David Vorpahl, who chaired the building committee, said a city employee discouraged the group from buying the property because it contained a wetland.

"We thought that would be a good location for the church," said Vorpahl, who now wonders why a big retail development is being considered there.

The status of the property's wetland has, at times, stymied even the experts. In 1996, Haynes said, the Department of Ecology determined there were no wetlands on the property. About that time, the city allowed a change to commercial zoning.

It wasn't until 2001 that the front wetland -- the one that was recently filled -- was identified by a company working for another potential developer.

Merker said wetland classifications can come and go amid the area's often drought-like conditions.

"We live in almost a desert in Eastern Washington. As a result, oftentimes these wetlands don't have water in them sometimes for a couple years in a row," he said.

Soil saturation is a major factor in determining wetland status, Merker said, adding, "wetlands can exist without above-ground water ever showing."

Despite the possible presence of another wetland on the east part of the property, the Department of Ecology couldn't block Wal-Mart from going in there.

Although the agency provides a report to the city during the state environmental review process, Merker said the final decision on whether Wal-Mart can build lies with the city of Spokane.

Wetland

What: A wetland that existed on land Wal-Mart Stores is eyeing on Spokane's South Hill has been illegally filled.

Who: Various theories have been floated, including that a previous owner filled the wetland; that the city of Spokane filled it during road construction last year; and that some unknown entity filled it during grading work over the past several months.

What's a wetland: Soil saturation is a major factor in determining wetland status; there doesn't have to be visible water.

Copyright (c) 2006, The Spokesman-Review, Spokane, Wash.

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Publix tops shopper survey, again

Florida Times-Union
02/22/2006                      [back to top] 

Feb. 21--Many people blame Winn-Dixie Stores Inc.'s problems on Wal-Mart Stores Inc.'s infiltration into the Southeastern grocery market, taking customers away from Winn-Dixie. But shoppers actually prefer Winn-Dixie over Wal-Mart. And, not surprisingly, they prefer Publix Super Markets Inc. over both of them.

That's the conclusion of an annual University of Michigan customer satisfaction survey taken on major supermarket chains, which will be released today.

Of seven supermarkets studied, Publix led the way with a customer satisfaction index of 81 in 2005. Winn-Dixie finished in the middle of the pack with a 73, and Wal-Mart was at the bottom with a 70. The average for the industry is 74.

"With Wal-Mart, people are not terribly satisfied with them, although they go there anyway," said Claes Fornell, director of the university's National Quality Research Center.

"They don't come out of that store being particularly happy," he said.

Fornell said the center asks customers their feelings about the shopping experience. But even though shoppers may not enjoy it, they will shop at Wal-Mart because of the low prices there.

"The pull is just too strong," he said.

The customer satisfaction scores in the supermarket industry have generally been stable, Fornell said. But Winn-Dixie's 2005 score of 73 is up slightly from 72 in 2004, as the company works to improve customer service after filing for a Chapter 11 bankruptcy reorganization a year ago.

Winn-Dixie's satisfaction index peaked at 75 in both 1995 and 1996, according to the survey, which began in 1994.

Overall in the fourth quarter of 2005, the university's American Customer Satisfaction Index continued a slow and steady climb by rising 0.4 percent. The overall index measures companies in several retail, financial services and e-commerce industries.

"Retailers are starting to put more emphasis on the fact that it's really good business to have satisfied customers," Fornell said.

He can point to the home improvement industry, where The Home Depot Inc.'s customer satisfaction rating dropped 8.2 percent in the past year to 67. Meanwhile, competitor Lowe's Companies Inc. rose 2.6 percent to 78.

"Since 2001, Home Depot's stock has declined and Lowe's has gone up, mirroring the movement of their ACSI scores," Fornell said.

Among all industries surveyed, e-commerce retailers produced the most satisfied customers, with online book sellers Amazon.com and barnesandnoble.com posting the highest scores of any companies at 87.

In the department and discount stores category, Kohl's, which opened its first three Jacksonville area stores last October, was the highest ranked chain with a score of 80.

The overall index, based on surveys of more than 200 companies in 42 industries, is rising because of satisfaction g ains for finance and insurance and e-commerce businesses. But the index for retailers as a whole actually fell from 72.6 in 2004 to 72.4 in 2005, and is down from its high of 75.7 in 1994, the first year of the survey.

"There's still a long way to go to really do well," Fornell said.

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Wal-Mart: 15 Countries and Counting

by John Yunker
February 22, 2006                  [back to top] 

Wal-Mart is currently doing business in 15 countries, but that number is going to grow. The company has certainly had some ups and downs overseas -- ups in Mexico and downs most everywhere else.

Still no ecommerce site yet for any other market than the US. But when you figure that the US Wal-Mart site just surpassed a whopping $1 billion in revenues, it's just a matter of time before the company tackles new markets.

Here's an excerpt from their Q4 2005 call:

"During the fourth quarter, we also continued our international growth through acquisitions. We acquired the Sonae retail operations in Southern Brazil; we increased our ownership of Seiyu to 53%, resulting in the consolidation of Seiyu in our financial statements beginning in January of 2006. We are now in 15 countries and we expect that number to increase. We acquired 545 new international stores and 50,000 new associates in just one week through our acquisitions, and we will build or relocate another 220 international stores in fiscal 2007."

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Wal-Mart developer appealing building permit

New York Times
February 22, 2006                   [back to top]

BENNINGTON, Vt. --The businessman who wants to open a new Wal-Mart in town and a group that opposes the project are both appealing the local building permit to the Environmental Court.

Jonathan A. Levy, of BLS Bennington, objects to some of the conditions imposed on his plan by the Development Review Board to replace the existing Wal-Mart with a 112,000-square-foot store, more than twice as large as the existing store.

He wouldn't say which aspects of the permit he was appealing.

Last month, the board approved Levy's plan on the condition that he get support from the Transportation Agency for his plan to widen the road to the new Wal-Mart. He was also required to build a bicycle and pedestrian path behind the store.

A group that opposes the larger Wal-Mart also appealed. Citizens for a Greater Bennington argues that the local permit didn't require a state transportation study or look at the economic and social impact of the Wal-Mart project.

The project still needs a state Act 250 land-use permit. That process has not yet begun.

© Copyright 2005 The New York Times Company

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Wal-Mart outlook cautious

PROFITABLE QUARTER BELIES RISING COSTS

By Marcus Kabel
Associated Press
Wed, Feb. 22, 2006            [back to top]

Wal-Mart Stores reported a 13.4 percent increase in fourth-quarter profits that beat Wall Street estimates, but the world's largest retailer also offered a cautious -- and disappointing -- profit outlook Tuesday as it struggles with higher interest expenses resulting from international acquisitions.

Wal-Mart also faces rising marketing costs as it tries to lure more upscale shoppers.

The retailer forecast first-quarter earnings per share between 58 and 62 cents and said it expected to earn $2.88 to $2.95 a share for fiscal 2007, which ends next Jan. 31. Analysts surveyed by Thomson Financial projected per-share earnings of 62 cents in the first quarter and $2.98 for the year.

The downbeat outlook reflects the fact Wal-Mart is finding it harder to sustain profit growth in the high teens as in previous years. Given its huge U.S. presence, much of the company's growth will now have to come from international markets, where start-up costs are higher, according to Ken Perkins, president of Retail Metrics, a research firm in Swampscott, Mass.

Meanwhile, many analysts expect Wal-Mart's upscale marketing strategy to take time to pay off as the retailer tries out merchandise including trendier women's clothes in 3,200 U.S. stores, hoping to regain sales growth momentum lost to smaller rivals such as Target. Its new strategy helped push the cost of selling in the fourth quarter up 8 percent from a year earlier, to $69 billion.

``The fact of the matter is that when you're doing what is essentially a turnaround and trying to get feet back under something, it doesn't always go that smoothly,'' said Patricia Edwards, a portfolio manager and analyst at Wentworth, Hauser & Violich in Seattle, which manages $6.6 billion in assets and holds about 63,000 Wal-Mart shares.

``They have a lot of moving parts,'' Edwards said.

The company's shares didn't take much of a beating by investors -- its stock slipped 0.8 percent, or 36 cents, to $45.74 on the New York Stock Exchange. But Wal-Mart's shares have fallen more than 10 percent over the past year amid concerns about slower growth and criticism from union-backed groups over how it treats its workers.

Wal-Mart said net income rose to $3.6 billion, or 86 cents per share, for the quarter ended Jan. 31 up from $3.2 billion, or 75 cents per share, a year earlier. Minus 2 cents per share from a one-time tax benefit, it earned just above the 83 cents per share projected by analysts surveyed by Thomson Financial.

The retailer reported total fourth-quarter net sales of $89.3 billion and total revenue of $90.1 billion. Analysts expected revenue of $90.4 billion.

© 2006 MercuryNews.com and wire service sources. All Rights Reserved.

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Wal-Mart plans face-lift to revive business in U.S.

By Michael Barbaro
The New York Times
WEDNESDAY, FEBRUARY 22, 2006                 [back to top]

NEW YORK For all its success in the United States - and there is plenty of it - Wal-Mart Stores is still struggling to figure out its home turf, where sales growth at individual stores has sagged, its customers routinely flirt with rivals like Target for clothing, and its advertising has often failed to inspire.

Now the retailer's plans to fix the problems have become clearer. Wal-Mart executives have pledged to remodel nearly half of the company's U.S. stores over the next 18 months, beef up the marketing division and expand a bold line of urban clothing, called Metro7, across much of the chain.

The changes, explained in Wal- Mart's fourth-quarter earnings announcement Tuesday, threw a spotlight on the increasingly important role of one man: Eduardo Castro-Wright, the new chief of Wal-Mart's U.S. stores. Castro-Wright is a popular figure in the company because of his success in transforming the retailer's Mexican division into one of its most profitable units.

Castro-Wright, 51, has proved to be an aggressive innovator, overseeing a change in regional store management that would put more supervisors in the field rather than in the company's hometown of Bentonville, Arkansas, and encouraging experimentation like a new pharmacy station that brings customers closer to pharmacists.

"Clearly, Wal-Mart's fortunes over the next 12 to 18 months hinge on the quality of the job that Eduardo Castro- Wright does," said Robert Buchanan, a retail analyst at A.G. Edwards. "He is the man on the hot seat."

Bill Dreher, a retail analyst at Deutsche Bank Securities, called Castro-Wright a rising star and a very strong candidate to succeed the chief executive, H.Lee Scott Jr., providing he could fix what analysts said was broken in the United States - a shopping experience that Wal-Mart executives concede has become inconsistent and, at times, unpleasant because of cluttered aisles and outdated decor.

Sales at Wal-Mart stores open for at least a year grew, on average, 3.6 percent a month in fiscal 2005, compared with a 5.8 percent gain for Target, according to the International Council of Shopping Centers, a trade group.

In its report Tuesday, Wal-Mart said profit rose 13 percent in the quarter ended Jan. 31, but the company, the world's largest retailer, predicted that full-year earnings would fall below Wall Street's expectations.

Wal-Mart shares, which fell 36 cents Tuesday, were up 9 cents at $45.83 on Wednesday afternoon.

Wal-Mart said it was optimistic about 2006 despite the financial burdens, including higher energy prices, facing its predominantly working-class shoppers.

The company forecast full-year earnings of $2.88 to $2.95 a share, compared with analysts' estimates of $2.98.

During a conference call, Castro- Wright outlined his plan to improve the uneven shopping experience at Wal- Mart's American stores, which accounted for 67 percent of the company's $312 billion in sales last year.

Perhaps the most ambitious part of the plan is the proposed renovation of 1,800 stores over the next 18 months. The remodeling is intended to bring the chain's oldest outlets in line with newer ones, which have faux hardwood floors in the clothing department, lower display cases that make it easier to see merchandise and - as Wal-Mart likes to emphasize - better restrooms.

Copyright © 2006 The International Herald Tribune

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Wal-Mart's results miss expectations

Nick Gibbens
22 Feb 2006                 [back to top]

Wal-Mart, the world's largest retailer, has reported a 13.4 per cent rise in fourth-quarter profit, below market expectations.

The US firm said net profit for the three months to January 31 was $3.6bn, or 86 cents per share, compared to $3.2bn, or 75 cents per share, a year earlier.

US net sales during the quarter were $89.3bn, up 8.6 per cent on the previous year.

Wall Street had expected better, but Wal-Mart was hit by higher costs and rising interest rates.

International sales at Wal-Mart, which owns UK supermarket Asda, rose by 14.1 per cent to $1.16bn.

Wal-Mart chief executive Lee Scott: "We're pleased our trend of year-over-year increases in sales and net income continues."For the year ending January 31, Wal-Mart made a net profit of $11.2bn, up from $10.3bn a year earlier.

Revenue for the year rose by 9 per cent to $312.4bn, while earnings per share were $2.68, up from $2.41 in fiscal 2005.

"We're pleased our trend of year-over-year increases in sales and net income continues," said Wal-Mart chief executive Lee Scott.

"We added more than $7bn in sales in the quarter and ended the year strong."

Mr Scott said he is "optimistic" about the year as he anticipates positive results from the company's business strategies to improve the customer experience.

"Our entire management team is dedicated to growing sales by making our stores more relevant to today's customers," he explained.

"We want our merchandise to appeal to a broad range of customers who are already shopping our stores. We want customers to shop Wal-Mart for all their needs, from consumables to electronics, home décor and apparel."

Looking ahead, Wal-Mart said it is targeting net income of 58 cents to 62 cents per share for the first quarter of fiscal 2007. For the full year, the company expects earnings of $2.88 to $2.95 per share.

Wal-Mart shares fell 45 cents to $48.40 in late-morning trade on the New York Stock Exchange.

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Wal-mart profit rises, but outlook dismays

By Lauren Coleman-Lochner
Bloomberg News
WEDNESDAY, FEBRUARY 22, 2006                  [back to top]

NEW YORK Wal-Mart Stores said on Tuesday that fourth-quarter profit rose 13 percent, bolstered by holiday sales of clothing, electronics and gift cards, but the world's largest retailer forecast annual earnings below analysts' estimates.

Net income for the quarter rose from a year earlier, to $3.59 billion, or 86 cents a share, exceeding analysts' estimates and helped by a tax gain of 2 cents, the company said. Revenue rose 8.7 percent, to $90.1 billion.

Sales at stores open at least a year rose 3.1 percent for the quarter through Jan. 31, lagging behind those of Wal- Mart's main U.S. competitor, Target. Wal-Mart is upgrading stores and merchandise to challenge Target, which has outpaced it in the same category for more than a year because of the popularity of its private-label apparel.

International sales rose 9.6 percent to $18.4 billion, but were hurt by weakness at ASDA, the retailer's British supermarket unit, which failed to meet fourth- quarter profit and sales goals as market leader Tesco pulled further ahead.

ASDA has been slower than Tesco to broaden its food ranges and introduce financial services like life insurance. Wal-Mart said ASDA plans to open as many as 30 stores this year, creating about 7,000 jobs. ASDA currently has 145,000 employees.

ASDA accounts for about 50 percent of Wal-Mart's international sales, or about 10 percent of the retailer's total revenue.

Wal-Mart's chief financial officer, Tom Schoewe, said the company was satisfied with the results.

Still, the week after Christmas "was not as good as it could have been," at Wal-Mart stores, he said. "We weren't as aggressive from a merchandising standpoint as we could have been." Wal-Mart started holiday advertising as early as Nov. 1 last year, and it raised profit margins by limiting markdowns.

"The holidays seemed to work out reasonably well for them," said Amy Bonkoski, an analyst at National City based in Cleveland, Ohio. "They really did get out there earlier and presented different kinds of merchandise and a slightly more upscale image."

Besides aiding overall profit, the move helped the retailer beat Target's monthly sales gain in November for the first time in 18 months. Target reported a 2.6 percent increase in sales at stores open at least a year for November after cutting its initial forecast in half. In December, however, the situation reversed, with Wal-Mart reporting a 2.2 percent gain, its smallest December increase in five years, after traffic declined. Target's figure was 4.7 percent.

Still, some analysts say Wal-Mart may be starting to lure customers from Target. "I don't think that was an aberration," Patrick McKeever, an analyst with SunTrust Robinson Humphrey, said of the figures for November. "It could be a sign of things to come in 2006."

Wal-Mart on Tuesday forecast profit for 2007 of up to $2.95 a share, less than the $2.98 consensus estimate. It also forecast first-quarter profit of 58 cents a share, compared with an average estimate by Thomson of 62 cents.

Shares of Wal-Mart fell 31 cents to $45.79 in late New York trading.

Wal-Mart, which has 3,800 U.S. stores, said it would open 555 new stores this year, including 335 in the United States. The company is also renovating stores, adding faux- wood floors and more space between racks in the clothing area. It plans to improve displays and overhaul bathrooms, executives have said.

Though these initiatives are positive, Wal-Mart's customers are generally lower-income than Target's, making them more vulnerable to higher fuel prices or a slowdown in economic growth, said Rick Rubin, an analyst with Mercantile Bankshares. "Unfortunately for Wal-Mart, we're still not seeing the trading-up effect," he said.

Acquisitions help Federated

Federated Department Stores, owner of the Macy's and Bloomingdale's chains, said on Tuesday that fourth- quarter profit rose 59 percent, helped by holiday sales at its newly acquired stores and a tax settlement.

Net income rose to $699 million, or $2.56 a share, from $440 million, or $2.61, a year earlier. Sales climbed 87 percent, to $9.57 billion, in the three months through Jan. 28, aided by its acquisition of May Department Stores, the company said.

Federated had strong sales of dresses, handbags and fragrances during the holiday season, its chief executive, Terry Lundgren, said. The retailer also benefited from its $11 billion acquisition of May, whose stores performed better than Federated expected, he said. Net income was helped by a gain of 8 cents a share from a tax benefit.

Shares of Federated fell 35 cents to $71.28 in late New York trading.

Excluding $131 million in costs to integrate the May stores and adjustments to the value of its inventories to reflect clearance sales, Federated had earnings of $2.74 a share.

On that basis, the company exceeded estimates of $2.62 a share, according to Thomson Financial.

Copyright © 2006 The International Herald Tribune

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On Private Web Site, Wal-Mart Chief Talks Tough

By STEVEN GREENHOUSE and MICHAEL BARBARO
The New York Times Company 
February 17, 2006                                        [back to top]

In a confidential, internal Web site for Wal-Mart's managers, the company's chief executive, H. Lee Scott Jr., seemed to have a rare, unscripted moment when one manager asked him why "the largest company on the planet cannot offer some type of medical retirement benefits?"

Mr. Scott first argues that the cost of such benefits would leave Wal-Mart at a competitive disadvantage but then, clearly annoyed, he suggests that the store manager is disloyal and should consider quitting.

The Web site, which Mr. Scott uses to communicate his tough standards to thousands of far-flung managers, gives a rare glimpse into the concerns that are roiling Wal-Mart's retailing empire, from the company's sagging stock price to how it treats its workers. Judging by the managers' questions, Mr. Scott has an internal public relations challenge that in some ways mirrors the challenge he faces from outside critics.

And while Mr. Scott's postings are usually written in a careful, even guarded manner, they can often be revealing — for example, showing a defensiveness and testiness with critics — that Mr. Scott normally keeps under wraps.

Copies of Mr. Scott's postings covering two years were made available to The New York Times by Wal-Mart Watch, a group backed by unions and foundations that is pressing Wal-Mart to improve its wages and benefits. Wal-Mart Watch said it received the postings from a disgruntled manager. While the existence of the Web site and Mr. Scott's participation in it have been known, transcripts have never been made public before.

The Web site has a folksy name — Lee's Garage, because Mr. Scott pumped gas at his father's Kansas service station while growing up.

But its tone is at times biting. In his response to the store manager who asked about retiree health benefits, Mr. Scott wrote: "Quite honestly, this environment isn't for everyone. There are people who would say, 'I'm sorry, but you should take the risk and take billions of dollars out of earnings and put this in retiree health benefits and let's see what happens to the company.' If you feel that way, then you as a manager should look for a company where you can do those kinds of things."

Mona Williams, a Wal-Mart spokeswoman, said Mr. Scott responded so sharply because of the manager's sarcastic tone. The question, she said, indicated the manager failed to understand how competitive retailing is and would not be able to convey that to his subordinates.

"At Wal-Mart, we communicate very candidly with one another," she said. She added that Mr. Scott's tone did not deter employees from asking questions, noting that 2,147 questions have been asked since last April.

Commenting on a labor union that is fighting Wal-Mart's expansion plans in New York City and elsewhere, Mr. Scott wrote in the Web site, "that way its members' employers" — meaning many Wal-Mart competitors — "can continue to charge extremely high prices for food and tolerate poor service."

Stung by the many news media reports about allegations of sex discrimination, off-the-clock work and child labor violations at Wal-Mart, Mr. Scott wrote, "The press lives on things that are negative."

The Web site shows many sides of one of the nation's most powerful executives. He denounces managers who complain about the company or their subordinates. He frets about the success of his discount rival Target. He exhorts employees to act with integrity. He mocks General Motors for problems caused by its generous benefits. He rejects a manager's suggestion that Wal-Mart has created "a culture of fear," and he hails Wal-Mart's performance in responding to Hurricane Katrina.

Mr. Scott has made some of these points before in public speeches, but in these confidential e-mail messages to managers, he delivers far blunter insights in much greater detail.

In one posting, he urges managers to set an example by doing more to comply with the company's 10-foot rule, requiring employees to smile and ask "Can I help you" when a shopper is less than 10 feet away.

In his postings, Mr. Scott tries to strike a chummy, "in the trenches" tone, reminding managers how frequently he visits stores — at least once a week — and pops into meetings unannounced "to make sure there's not a filter keeping me from hearing what's really important."

But his responses often serve to remind managers of the gap between them and their chief executive, who earned more than $17 million last year, including stock options, who hops around the globe on Wal-Mart's fleet of jets and who lives in a gated community called Pinnacle.

"I recently had dinner with the prime minister of the U.K., Tony Blair, and his wife; my wife and I had a meeting with Prince Charles to talk about sustainability; and I met with Steve Case, the founder of AOL, and talked about health care," Mr. Scott wrote in a two-week-old entry describing how he represents Wal-Mart around the world.

Mr. Scott, 56, joined Wal-Mart in 1979 as its assistant trucking manager. Helped by his affable manner and his command of the company's vast distribution system, he was named chief executive in 2000.

Throughout the dozens of postings, Mr. Scott shows deep concern about the many attacks and allegations that Wal-Mart skirts environmental and labor laws. He acknowledges that Wal-Mart used to have a greater tolerance for managers who cut corners, but his postings insist that Wal-Mart's new focus is on total compliance with the law. In a posting last June, he quoted the Rev. Dr. Martin Luther King Jr., saying, "The time is always right to do what is right."

Responding to a manager's question about attacks on Wal-Mart's image, Mr. Scott wrote in an April 2004 posting: "Your value to Wal-Mart is outweighed by the damage you could do to our company when you do the wrong thing."

"If you choose to do the wrong thing: if you choose to dispose of oil the wrong way, if you choose to take a shortcut on payroll, if you choose to take a shortcut on a raise for someone — you hurt this company," he added. "And it's not unlikely in today's environment that your shortcut is going to end up on the front page of the newspaper. It's not fair to the rest of us when you do that."

Lee's Garage was set up in January 2004, at Mr. Scott's suggestion, to improve communications with managers after a wave of particularly bad publicity, including a federal raid that rounded up 250 illegal immigrants who cleaned Wal-Mart stores and a class-action lawsuit charging sex discrimination, filed on behalf of 1.6 million current and former female employees.

Ms. Williams of Wal-Mart said a public relations assistant screened the questions and Mr. Scott dictated responses to an aide. At first the site was accessible only to salaried managers. Last October, it became available to all 1.3 million employees in the United States.

The questions posted on the Web site range from the self-interested (when will managers receive a raise?) to the competitive (will the merger of Sears and Kmart hurt Wal-Mart?) to the academic (is Wal-Mart technically a monopoly that could be broken up?).

A recurring theme is the attacks on Wal-Mart's image and managers' worries that these attacks are undermining employee morale and the company's ability to grow. Asked if the negative publicity has slowed Wal-Mart's expansion, Mr. Scott responded: "I think it probably has. You can't get letters that say, 'I read where you're doing this and therefore I'll never shop with you again,' and assume everyone who writes that is just some nut. Some of those are real people who don't know us and believe what they've read."

A manager of a Wal-Mart's store in Medford, N.Y., asked about Wal-Mart's repeated failure to gain zoning variances and other government permits to open its first store in New York City. "We're going to have to be a lot more sophisticated about it than we have been," he said, saying that Wal-Mart brings good jobs and great prices. "But I think you'll see us get the stores."

Though Wal-Mart is three times larger than its next biggest retail rival, Mr. Scott appears to be preoccupied with competitors whose individual store sales are growing faster than Wal-Mart's — namely Target and Walgreens.

Asked about Wal-Mart's stock price, which has fallen 11 percent in the last five years, Mr. Scott said: "You cannot have Target or Walgreens beating you day after day after day." Mr. Scott wrote that one reason Wal-Mart's same-store sales were growing more slowly than Target's was that Wal-Mart's customers earn less and have been squeezed worse by soaring fuel prices.

"Wal-Mart's focus has been on lower income and lower-middle income consumers," he wrote. "In the last four years or so, with the price of fuel being what it is, that customer has had the most difficult time. The upper-end customer got a tremendous number of tax breaks about four years ago. They have been doing very well in this economy."

He said having to pay $50 to gas up a car did not change anything for rich customers, but did for those who didn't earn a lot. "It changes whether or not you go to the movie, whether or not you buy new sheets, whether or not you go out to eat."

At several points, Mr. Scott addressed criticisms that Wal-Mart health plan was too stingy toward its employees. He said that Wal-Mart's health plan "stacks up very, very competitively" with other retailers. In a knock at companies that provide more generous benefits, Mr. Scott wrote: "One of the things said about General Motors now is that General Motors is no longer an automotive company. General Motors is a benefit company that sells cars to fund those benefits."

In one posting, Mr. Scott talked about how proud he was about Wal-Mart's response to Hurricane Katrina, when it rushed urgent supplies to the Gulf Coast. "The media coverage has been extremely positive and speaks to who we really are as individuals, and as a company."

When one manager asked how an associate — Wal-Mart's term for an employee — could become chief executive of the world's largest retailer, Mr. Scott wrote, "The first thing you can do is make sure you treat your people well, and understand that your associates are what will make you a success."

Copyright 2006 The New York Times Company 

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Wal-Mart to anchor $80M shopping center in Bradley

Kohl's, PetSmart also tenants in 800,000-square-foot center

By H. Lee Murphy
Feb. 17, 2006

(Crain's) — An 800,000-square-foot shopping center, to be anchored by Kohl's, PetSmart and Wal-Mart, is planned on a 113-acre site at the intersection of Illinois Highway 50 and St. George Road in suburban Bradley.

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Wal-Mart Positioned For New Round Of Growth

Tom Van Riper
02.17.06                       [back to top]

The sleeping giant may be ready to rise again.

Shares of Wal-Mart (nyse: WMT - news - people ), which have been stuck in neutral for most of the past five years despite sales and profit growth that has consistently beaten industry benchmarks, seem poised for a fresh round of growth as Wall Street looks for the valuation to catch up to performance.

The retail giant reports fourth-quarter results on Tuesday, with Edward Jones analyst David Powers looking for 83 cents a share on $90 billion in sales, eight cents better than the year-earlier period. And he thinks earnings growth will accelerate to nearly 13% in the April quarter, thanks to some higher margin items and well-documented economies of scale that result in better-than-average returns on invested capital.

"We believe Wal-Mart's growth outlook remains favorable," Powers said in a research note.

January's 4.7% same-store sales growth represented the high end of the retail giant's forecast. That's a positive development for a company whose results had been coming in at the low end of predictions for several months. December's sales growth came in at just 2.2%. Analysts think the jump was significant, even though it was partly the result of holiday gift card sales pushing the recognition of some sales into January, when many customers redeemed the cards for purchase.

Powers, who rates the stock at "buy," thinks Wal-Mart's current risks on the legal front are manageable. Others think the biggest potential risk to future profits is whether unions succeed in expanding the recent Maryland legislature decision forcing the company to pay more for employee health care to other states.

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Wal-Mart CEO shoots back

Head of retail behemoth defends company's practices on internal Web site.

CNNMoney.com
February 17, 2006                 [back to top]

NEW YORK (CNNMoney.com) - On an internal Web site, Wal-Mart's chief executive fires back at store managers questioning the retailer's practices, including its choice to not offer benefits for retirees.

In postings made on Lee's Garage, a confidential Web site Wal-Mart (Research) CEO Lee Scott uses to communicate with the retailer's store managers, Scott is candid about the company's decision to not offer a medical retirement plan.

"If we're not competitive, we don't exist. We have to operate in the environment we're in today. So we do not have retiree health benefits, and we will not have retiree health benefits unless the industry as a whole changes, or unless the government somehow gets involved in what is today a health-care mess in this country," he argues in a posting from April.

Wal-Mart Watch, a group that monitors the retailer and often criticizes its practices, provided CNNMoney.com with copies of Lee's responses.

The postings, which at times take on biting tone, show a defensiveness that Scott usually keeps under wraps, according to the New York Times, which first reported on the Web postings.

In response to the manager inquiring about retiree medical benefits, Scott continues: "What bothers me is that this is a store manager who's running the store meetings in the morning. If this is how he feels and how he expresses himself, I worry about him representing all of us in management to his associates.

"Quite honestly, this environment isn't for everyone. There are people who would say, 'I'm sorry, but you should take the risk and take billions of dollars out of earnings and put this in retiree health benefits and let's see what happens to the company.' If you feel that way, then you as a manager should look for a company where you can do those kinds of things."

In the transcripts, Scott tackles other topics, including the company's stagnant share price and public attacks on its practices.

In an April 2004 posting, Scott admits he is concerned about the onslaught of negative media attention. "I don't know if I'd say I'm concerned about Wal-Mart's reputation: among the people who matter most, namely our associates and customers, we have a very fine reputation. But I am concerned about the press."

The postings on the Lee's Garage site offer a glimpse into the concerns roiling the retail empire, the Times said, ranging from the retailer's ongoing expansion to its treatment of employees.

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Wal-Mart's Japan unit sees 5th year in loss in 2006

Fri Feb 17, 2006            [back to top]

TOKYO (Reuters) - Wal-Mart Stores Inc.'s <WMT.N> struggling Japanese subsidiary, Seiyu Ltd. <8268.T>, said on Friday it would lose much more money than expected this year due to an asset impairment charge.

That would be a fifth straight year of net losses for the company, owned 53 percent by the U.S. retail giant.

Japanese retailers have benefited from a recovery in the country's economy, which boosted personal spending, but Seiyu is lagging the trend as it struggles to adopt its U.S. parent's sales strategy.

Wal-Mart, the world's biggest retailer, took a controlling stake in Seiyu in December and sent one of its executives to head the company in a bid to make an inroad into Japan's crowded retail market.

Seiyu forecast a net loss of 54.5 billion yen ($461 million) in the year to December, compared with a consensus forecast of a loss of 8.5 billion yen in a poll of four analysts by Reuters Estimates.

Its group net loss totaled 17.77 billion yen in 2005 due to sluggish sales, promotional spending that squeezed margins and a one-off charge. That compared with a net loss of 12.32 billion yen in 2004.

Same-store sales fell 2.1 percent last year.

The 2005 results were expected because Seiyu warned last month that its net loss would likely widen from its previous forecast, in part because of 2.1 billion yen special charge on inventory reevaluation.

Seiyu shares rose 48 percent in 2005, but lagged a 61 percent increase on Tokyo's retail sub-index <.IRETL.T>.

Prior to the announcement, the stock closed down 12.73 percent at 240 yen, while the subindex ended down 2.49 percent. The Nikkei average <.N225> was down 2.06 percent.

($1=118.21 Yen)

© Reuters 2006. All rights reserved.

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Gregoire pledges to pass a "Wal-Mart bill" next year

By Curt Woodward
The Seattle Post-Intelligencer (WA)
February 16, 2006                                [back to top]

OLYMPIA, Wash. -- Gov. Chris Gregoire pledged Thursday to pass a "perfected" bill next year mandating health care spending by large employers, just days after a version aimed squarely at Wal-Mart died at the Legislature. Speaking at a meeting of organized labor groups, Gregoire promised to work out details that apparently led the state House's top Democrat to block the measure this year.

"I think we ought to work to perfect the bill and make it happen next year," she said to thunderous applause from members of the Washington State Labor Council.

The bill in question was killed Tuesday evening when House Speaker Frank Chopp, D-Seattle, refused to bring it up for a vote before a key legislative deadline that day.

Unions lobbied furiously for the measure, which would have required companies with 5,000 workers to devote 9 percent of their payrolls to health benefits. Those that didn't meet the standard would have to pay into taxpayer-funded health programs.

It's similar to measures being pushed in more than 30 states by organized labor, and the key target is retail behemoth Wal-Mart.

Chopp doubted the measure's effectiveness, and said he wants to study the status of employer-funded health care in the coming year. Gregoire endorsed that approach on Thursday.

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Democrat demands Wal-Mart pay fair share of health-care costs

By R.A. Dillon
Fairbanks Daily News-Miner
February 16, 2006                             [back to top]

JUNEAU--An Anchorage Democrat is pursing legislation forcing Wal-Mart to pay more for its employee health care. The bill by Rep. Eric Croft requires employers with more than 2,000 workers to spend at least 8 percent of their payroll on employee health care or else pay into a fund for the uninsured.

The Fair Share Health Care Act is patterned on a Maryland law that has spawned both similar legislative attempts in more than 30 states and a court challenge.

Wal-Mart is one of four companies in Alaska with more than 2,000 employees--Providence Alaska Medical Center, Safeway and Fred Meyer are the others--but the only one known to spend less than 8 percent on medical benefits.

The Arkansas-based retailer is the state's third largest employer with 2,725 associates.

Wal-Mart employs 325 people at its Johansen Expressway store in Fairbanks, according to co-manager Brad McGinnity.

The company is forcing its workers to apply for the state-funded Medicaid program by not providing them with adequate compensation, said Croft, who is campaigning for governor in November.

Medicaid expenses, which made up 40 percent of the state Department of Health and Social Services' $607 million budget in 2005, are the fastest growing sector of state spending.

The state has not broken out the number of Medicaid recipients to see how many of those claiming benefits on the state's low-income health care program belong to the working poor, but Croft said the number is significant.

"We think large companies should provide a fair health-care plan for their employees and if they don't, they should contribute to a fund to pay back the state," Croft said.

Separate legislation by Rep. Max Gruenberg, D-Anchorage, would require people applying for medical assistance to provide the names of their employers to the state.

"This will allow the state to determine those employers who are not paying their fair share of health care costs," he said.

Gruenberg said he wanted to collect more information before supporting legislation mandating spending levels on health care for Wal-Mart and other large retailers.

"We're hoping to get these companies to pick up some of their own expenses, but first we want to see how big a problem it is for Alaska," he said.

Alaska is just the latest state to step up pressure on the discount retail giant to expand health care coverage for its more than 1.3 million U.S. workers. Anti-Wal-Mart groups in Fairbanks, Anchorage and Homer have protested expansion by the retail giant.

Over the past four decades, Wal-Mart has grown from a small chain to a global enterprise with 5,000 stores in 10 countries.

Wal-Mart officials complain they are being singled out because of their large size, which means they are more likely to have more employees on public health assistance.

Wal-Mart spokeswoman Jennifer Holber said the company is the number one employer of the disabled and welfare-to-work participants, which contributes to the 7 percent of its workforce that receive Medicaid benefits.

Wal-Mart said more than 615,000 of its 1.3 million workers are covered by company health plans, and that it has taken some 160,000 people off the uninsured rolls in 2006.

"We're very interested in sitting down and working with states to get to the root of the problem," Holber said. "We want solutions, but the fair share bills that are being introduced don't offer a systemic approach to the problem."

In Fairbanks, Wal-Mart's McGinnity said he was surprised to hear about Croft's bill, in part because he thinks the company already provides good benefits for workers.

Several of the store's applicants come to Wal-Mart hearing that the store offers great benefits, he said.

"Most of our associates are very happy with our insurance plans right now," he said, based on what they have told him. McGinnity said he did not know how many of his store's employees qualified for health insurance or how many worked full-time.

The bills have the support of labor unions who argue Wal-Mart is putting profits over the health of its workers.

"We don't think they're going to treat Alaskan workers any different that they have nationally," said Wally Stuart, director of United Food and Commercial Workers in Anchorage.

The United Food and Commercial Workers International Union recently launched a $100,000 national advertising campaign targeting Wal-Mart.

The measures are House Bills 449 and 468.

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Bottlers Sue Coca-Cola At issue: Wal-Mart Powerade delivery plans

CSP Daily News
February 16, 2006                    [back to top]

SPRINGFIELD, Mo. -- A group of about 50 Coca-Cola bottlers filed a suit in U.S. District Court here to prevent The Coca-Cola Co. and Coca-Cola Enterprises Inc. (CCE) from shipping PowerAde to customer warehouses instead of delivering the product directly to individual stores, a system that has been in place for more than 100 years.

Coca- Cola bottlers will also seek a preliminary injunction to stop CCE’s PowerAde warehouse delivery plans until the legal action is resolved.

A similar suit is also expected to be filed in Circuit Court of Jefferson County in Birmingham, Ala., by an additional group of bottlers bringing the total number of bottlers involved to nearly 60.

The suits contend that an agreement negotiated in 1994 between the bottlers and the company specifically prohibits warehouse delivery of PowerAde to retailers like Wal-Mart.

“The plans for a large scale rollout of warehouse delivery of PowerAde fundamentally alters the system that has made Coca-Cola the most recognized global icon and one of the world’s most valuable brands,” said Claude B. Nielsen chairman, president and CEO of Coca-Cola United Bottling Co., Birmingham, Ala., the third largest Coca-Cola bottler in the United States and a member of the executive committee for the Coca-Cola Bottlers Association.

Nielsen said the bottlers and Coca-Cola have worked for months to come to an acceptable resolution of the issue of PowerAde warehouse delivery. “Unfortunately, despite our best efforts, we have not been able to reach a solution with either the company or CCE and we are left with no alternative but to initiate legal action,” said Nielsen.

The bottlers are also concerned that the warehouse delivery of PowerAde violates the principles that underlie the bottlers’ perpetual contracts with Coca-Cola. Throughout their 100-year history, bottlers have served all of their customers directly, large and small, by using their own employees and trucks to deliver product to store shelves within their exclusive territories.

In the 1970s, that system was challenged by the Federal Trade Commission (FTC) in part because of objections that the exclusive territory system made it impossible for large customers to use their warehouse delivery systems. Congress intervened and passed the Soft Drink Interbrand Competition Act in 1980, concluding that the bottler system should be preserved because of its benefits to competition, consumers and local communities including smaller retailers.

“All Coca-Cola bottlers, first and foremost, seek to provide the best and most reliable service we can for our customers,” said Edwin C. Rice, chairman and CEO of Ozarks Coca-Cola Bottling, Springfield, Mo., which saw its PowerAde volume grow by 121% in Wal-Mart stores in its territory in 2005. “Regrettably, this action involves one of our most valued and largest customers. It is our commitment to provide Wal-Mart with excellent service and local promotional activity that will continue to build the PowerAde brand.”

“We believe that DSD continues to provide retailers, both large and small, with the most efficient and effective distribution of Coca-Cola products,” said Rice. “Combined with superior merchandising, local brand development and strong local relationships, DSD has had a tremendous impact on the overall success of the PowerAde brand.”

Research shows the bottling system played a key role in the doubling of PowerAde sales volume between 2000 and 2004. While PowerAde trails the market leader in isotonic drinks nationally by a wide margin, several of the plaintiff bottlers, which have more than 10,000 employees collectively, have built PowerAde into either a leadership or strong contender position in their local markets.

“The value that the bottling system brings to the Coca-Cola Co. and our customers is without question,” said Rice. “We believe the ultimate success measure for retailers is increasing PowerAde sales, which is more a matter of operational performance on the part of the bottler than warehouse delivery. Getting the product to the warehouse is not the goal. The goal is getting the product into the hands of more consumers more often.”

Atlanta-based Coca-Cola said it is “extremely disappointed” with the suits by bottlers representing about 10% of the company’s U.S. volume, attempting to block the test by CCE of a new delivery system for Powerade.

“These suits are actions against our consumers and our customers—they would prevent the Coca-Cola system from strengthening its competitive position in this category and meeting consumer demand for lower cost, more efficient access to our popular Powerade sports drinks,” said Don Knauss, president of Coca-Cola North America. “The actions by bottlers…would greatly hamper the Coca-Cola system from competing with other sports drink brands, and that does a great disservice to the system, its people and its consumers.”

He added, “We want to work with all our bottlers to create growth in all channels and with all customers. Litigation is completely inappropriate and unfounded in light of the ongoing discussions between the company and all our bottlers to respond to a major customer’s request for the benefit of everyone. We are extremely disappointed that a few individuals are attempting to hijack those discussions.”

Powerade U.S. volume growth was in double digits in 2005, reaching an 18.6 share in the sports drink category (FY 2005 Nielsen Measured Channels). Wal-Mart approached the company and its bottlers last summer, saying it wanted to increase availability of Powerade in its stores and grow the brand even faster, if the system would allow it to deliver the product to its stores through its own warehouses. In response, CCE decided to conduct a test of that proposal in some of its exclusive territories, which it is allowed to do under its contract with the company.

“When a customer comes to our system with an idea, we want to consider it as a system for the benefit of our consumers and our entire system, which is how we have handled this request,” said Knauss. “We are currently reviewing a complex and unrealistic proposal from the Coca-Cola Bottlers Association and have committed to responding to it by February 22. These lawsuits will only shut down for everyone what we believe had been a productive business dialogue.”

Meanwhile, Coca-Cola said that Warren E. Buffett and J. Pedro Reinhard have informed the company that they do not intend to stand for re-election to the board at the upcoming annual meeting of shareowners.

Buffett said that his decision was a consequence of the increased demands on his time resulting from Berkshire Hathaway’s acquisitions of new companies. He also noted that Berkshire Hathaway intends to retain its holdings of Coca-Cola stock.

Both Buffett’s and Reinhard’s terms expire on April 19, 2006, at the Company’s Annual Meeting of Shareowners. The company has no immediate plans to fill the vacated board seats.

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Wal-Mart sweetener sours Splenda

By month's end, the retailer's supercenters will carry a store version of the popular sugar alternative.

Reuters
February 16, 2006           [back to top]

CHICAGO (Reuters) - Wal-Mart Stores Inc. will carry a store-brand version of the popular low-calorie sweetener Splenda in its U.S. supercenters by the end of the month, the retailer said Wednesday, a move that may revive investor concerns about Splenda maker Tate & Lyle Plc.

Wal-Mart (Research), the world's biggest retailer, tested its own version of the sweetener -- called sucralose -- under the brand name "Altern" last year, making analysts worry that the company could threaten sales and profits for Britain's Tate & Lyle.

In September, Tate & Lyle said Wal-Mart had removed Altern from its shelves. However, the company said on Tuesday that Altern was once again showing up at a handful of Wal-Mart stores, and it was trying to determine whether the product infringed on its patent.

On Wednesday, Wal-Mart spokeswoman Karen Burk confirmed that the retailer tested Altern in a few stores last fall, and said the company was now planning to roll it out nationwide.

"We're now introducing this product and it will be available in all of our supercenters by the end of February," she said in response to questions from Reuters.

Wal-Mart has nearly 2,000 U.S. supercenters, its largest stores, that include a full line of groceries alongside general merchandise goods ranging from toothpaste to televisions.

The zero-calorie Splenda sweetener was launched by Tate & Lyle and its partner, Johnson & Johnson's (Research) McNeil unit, in the United States in 1998. Tate & Lyle sells Splenda to food and drink makers, while McNeil controls sales to retailers.

Splenda accounts for a large portion of Tate & Lyle's annual profit, so analysts fear that if Wal-Mart can obtain a cut-price version, then food and drink makers would also be able to buy cheaper sucralose.

"Tate & Lyle does not expect the launch of this product, even were it to be on a national scale, to have any material effect on the results of its sucralose division and is making this statement in recognition of the high level of investor interest in sucralose," Tate & Lyle said in Tuesday's statement.

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Debate over ‘Wal-Mart law’ hits Colorado

By Charles Ashby
Pueblo Chieftain
February 15, 2006                    [back to top]

Retailer defends health benefits as group seeks increased spending. DENVER - More than 250 workers chanted and testified at the Colorado Legislature on Monday to try to get lawmakers to increase access to medical coverage by forcing Wal-Mart to pay more.

Though HB1316 would require large corporations that employ 3,500 or more people to provide health insurance to their workers, the workers made clear the measure was aimed at Wal-Mart.

The discount store has been the target of numerous attacks nationwide over employee pay and benefits. Maryland's Democrat-controlled state Legislature recently overturned a governor's veto in support of the law. A nation retail group subsequently filed a court challenge of the Maryland law.

"Colorado families struggling to pay for their own health care can't afford to also subsidize free-loading corporations, like Wal-Mart, that refuse to pay their fair share," said Bill Vandenberg of the Colorado Progressive Coalition. "Corporations have to pay their own way."

Wal-Mart spokeswoman Kelly Hobbs said 75 percent of the company's employees have health care. She said the bill is part of a national campaign by unions to punish the company for not hiring union workers.

"Labor union's leaders have been unsuccessful forcing our workers to unionize, so they developed a multi-million dollar campaign to slow down Wal-Mart's growth," she said.

The House Business Affairs & Labor Committee took testimony on the measure, but delayed voting on it for another day.

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House panel approves health insurance bill aimed at Wal-Mart

By John Stamper
Lexington Herald-Leader
February 15, 2006                      [back to top]

FRANKFORT — Lawmakers chastised retailing giant Wal-Mart today, threatening to approve legislation that would force the world’s largest company to take better care of its more than 30,000 Kentucky employees. The proposal, which would require companies with more than 25,000 employees to spend at least 10 percent of their payroll on employee health insurance, was passed by the House Banking and Insurance Committee 15-4, with three members voting “pass.”

However, many legislators who voted for the bill said they still have serious concerns and might vote differently when the measure comes before the entire House.

“It has a rough, bumpy road ahead, to say the least,” said Democratic Rep. J.R. Gray of Benton, a co-sponsor of the proposal.

Wal-Mart has faced intense criticism in the past year for its health insurance policies, which force many of its employees and their families to rely on state-sponsored health-care plans or go uninsured.

Called the Fair Share Health Care Act, the proposal appears to affect only Wal-Mart and UPS, which has a large air hub in Louisville.

Businesses with 25,000 or more workers that fail to spend 10 percent of their payroll on health insurance would be required to pay a sum equal to that amount to the state. That money would be used to support the Medicaid program.

Companies that fail to make the required payment would face a $250,000 fine.

Similar versions of the so-called Wal-Mart bill are under consideration in 33 states this year, according to Laurie Smalling, a Wal-Mart regional manager of state government relations who testified today.

Calling the provision “an unfair mandate,” Smalling said the bill would “cost jobs and slow economic growth.”

She declined to say what percentage of the company’s Kentucky payroll is spent on health insurance. She also couldn’t say how many of the company’s Kentucky workers rely on Medicaid.

The company has 38 Wal-Mart stores, two distribution centers and seven Sam’s Club stores in the state, which pay an average hourly wage of $9.94, Smalling said.

An internal company memo leaked to the media late last year indicates that 5 percent of Wal-Mart’s workers nationwide are on Medicaid, compared with an average of 4 percent for other national employers. About 27 percent of its workers’ children are on Medicaid, compared with 22 percent nationally.

In all, 46 percent of Wal-Mart workers’ children are on Medicaid or are uninsured, according to the memo.

“We have large entities that are riding on the backs of taxpayers,” said Rep. Melvin Henley, R-Murray, a co-sponsor of House Bill 493. “We need some special regulations to control the mammoths among us.”

Those who opposed the bill, and some who voted to pass the measure, said it is unfair to single out one company when businesses of all sizes are struggling to provide adequate health insurance.

“I just have a reluctance to attack one business like this,” said Rep. Sheldon Baugh, R-Russellville, who voted “pass.”

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Bernanke expresses concern on industrial banks

Reuters
February 15, 2006                    [back to top]

WASHINGTON, Feb 15 (Reuters) - A bill that would make industrial banks subject to the same level of federal supervision as other banks would help alleviate the Federal Reserve's concerns about those financial institutions, Fed Chairman Ben Bernanke said on Wednesday. Responding to a question from a House panel about industrial loan companies, or banks that may be owned by corporations but are not subject to a level of federal bank regulation, Bernanke said placing those institutions under the Bank Holding Company Act would relieve the Fed's anxiety.

"In my view, the bill that you're describing would solve the problem and would relieve our anxiety considerably about this particular type of organization," Bernanke told the U.S. House Financial Services Committee in his first appearance on Capitol Hill as Fed chief.

Industrial banks are state-chartered and state-regulated, and fall under FDIC supervision. Commercial companies may own them because federal laws that bar non-financial companies from engaging in banking activities do not classify them as banks.

Recently, former Fed chairman Alan Greenspan said Congress should review a "loophole" in federal law that allows companies to buy industrial banks in a handful of states but avoid a level of supervision by regulators.

Wal-Mart , the world's largest retailer, has applied to open an industrial bank in Utah. That application has generated substantial opposition from some lawmakers.

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NOW Urges Wal-Mart to Expand Emergency Contraception Access to Stores in all States

NOW
February 15, 2006                 [back to top]

Under pressure from a lawsuit and the state pharmacy board, Wal-Mart agreed yesterday to start stocking and selling emergency contraception in its Massachusetts stores. Currently Wal-Mart does not dispense emergency contraception (also known as Plan B or the "morning after pill") in any state other than Illinois, where it is required to do so by law.

"While NOW is encouraged by this development, it is clear that Wal-Mart only changes its policy when backed into a legal corner. Their concern for the rights of women customers is secondary at best," said NOW Action Vice President Melody Drnach.

NOW named Wal-Mart a Merchant of Shame nearly four years ago, pointing to the retail giant's long list of alleged workplace abuses, including sex discrimination in pay, promotion and compensation, and its refusal to dispense emergency contraception.

To be most effective, emergency contraception should be taken as soon as possible within 72 hours of unprotected intercourse or contraceptive failure. Because Wal-Mart has put so many smaller stores out of business, in a number of areas it is the only pharmacy for miles. No woman at risk for unintended pregnancy, be it the result of sexual assault or a broken condom, should be turned away by Wal-Mart and forced to find another pharmacy while the clock is ticking.

Unable to fill their Plan B prescriptions at Wal-Mart stores, three Massachusetts women filed suit against the retailer on Feb. 1. In a matter of days, the state Board of Registration in Pharmacy voted unanimously to require Wal-Mart to stock and sell emergency contraception, and the company announced that it would comply "as soon as reasonably possible."

"NOW urges Wal-Mart to take action immediately to meet the requirements of the Massachusetts pharmacy board. Unfortunately, women will continue to be denied Plan B at thousands of Wal-Mart pharmacies across the country," said Drnach.

A Wal-Mart spokesperson told the media that the company is reviewing its nationwide policy on emergency contraception and "actively thinking through the issue."

"Simply saying that they're reviewing the policy is not enough," said Drnach. "Any policy that discriminates against women is wrong and should be changed without delay."

Copyright 1995-2006, All rights reserved. Permission granted for non-commercial use. National Organization for Women

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Wal-Mart must stock emergency contraception

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BOSTON (AP) — The state board that oversees pharmacies voted Tuesday to require Wal-Mart (WMT) to stock emergency contraception pills at its Massachusetts pharmacies, a spokeswoman at the Department of Public Health said. The unanimous decision by the Massachusetts Board of Pharmacy comes two weeks after three women sued Wal-Mart in state court for failing to carry the so called "morning after" pill in its 44 Wal-Marts and four Sam's Club stores in the state.

The women had argued that state policy requires pharmacies to provide all "commonly prescribed medicines."

The board has sent a letter to Wal-Mart lawyers informing them of the decision, said health department spokeswoman Donna Rheaume. Wal-Mart has until Thursday to provide written compliance with the board's decision.

Wal-Mart spokesman Dan Fogleman said the company hadn't heard about the decision, but would comply with any order.

Wal-Mart carries the pill in Illinois only, where it is required under state law. The company has said it "chooses not to carry many products for business reasons," but declined to elaborate.

Copyright 2006 The Associated Press. All rights reserved.

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Pro-Abortion Group 'Delighted' Wal-Mart Must Stock 'Morning-After' Pill

By Melanie Hunter
CNSNews.com
February 14, 2006                 [back to top]

(CNSNews.com) - A pro-abortion group is praising the Massachusetts Board of Pharmacy for its unanimous decision requiring all Wal-Mart stores in the state to stock the "morning-after" pill.

NARAL Pro-Choice Massachusetts said it is "delighted" over the state board's decision in favor of three women who challenged the store for refusing to carry the emergency contraception in its pharmacies.

"This decision reflects the values of fairness and privacy that a vast majority of Massachusetts residents support," said NARAL Pro-Choice Massachusetts Executive Director Melissa Kogut in a statement. She said the pharmacy board did "the right thing."

Kogut called on all Wal-Mart stores throughout the nation to dispense the Plan B emergency contraception "and replace its current policy of discrimination with one that puts women's health first."

The pro-abortion group sent over 26,000 messages from all 50 states to Wal-Mart headquarters in Bentonville, Ark., calling on the retailer to reverse its policy and carry the "morning-after pill."

"The message from Americans is clear -- the public wants pharmacies to be a resource for medical care, not a barrier," said Kogut.

The Associated Press reports that Wal-Mart spokesman Dan Fogleman, who did not hear about the pharmacy board's decision, said Tuesday that the company would comply with any order. The retailer already carries the contraceptive pill in Illinois, where it is required under state law.

"Just a few days ago, a Wal-Mart spokesperson indicated that for the first time Wal-Mart may be rethinking its policy. The plaintiffs here in Massachusetts can be proud that their voices have been heard. We will be sure that the voices of Americans all over the country will continue to be heard as well," said Kogut.

The morning-after pill "has tremendous potential to reduce unintended pregnancy and the need for abortion but only if women have access to this back-up method soon after unprotected sex, contraceptive failure or rape," Kogut concluded.

Copyright 1998-2006 Cybercast News Service

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States must follow Maryland's lead on Wal-Mart health benefits

The Free-Lance Star (VA)
February 12, 2006                     [back to top]

WASHINGTON--Maryland just took a positive step toward expanding workers' rights. And the move could have larger implications around the country. The state's General Assembly passed a law called the Fair Share Health Care Fund Act that will require Wal-Mart, and other large employers, to dedicate 8 percent of its payroll costs to employee health care.

If employers fall short of this mark, they will have to pay the difference to the state's health-care program for low-income families.

Many other states may use Maryland's law as a template to introduce similar legislation this year. In the process, Maryland is helping to redefine the social compact with America's workers.

Wal-Mart executives, business leaders, and conservative politicians have criticized Maryland lawmakers for undeservedly beating up on the retail giant. But those lawmakers were responding to the demands of hard-working people across the state who are struggling with exorbitant health-care costs.

Taxpayers who don't want to give big companies a free ride, unions and other organizations that represent the interests of working families--and even some Wal-Mart consumers--also pushed for reform. An amazing 66 percent of Marylanders supported this bill.

When customers register outrage about the unfavorable practices of their favorite brands, positive changes occur.

McDonald's replaced its plastic foam packaging with more environmentally friendly paper products.

Nike was forced to address sweatshop labor conditions in its shoe-manufacturing facilities.

And Starbucks began selling "fair-trade" coffee that properly compensated coffee plantation workers and small farmers.

Wal-Mart, too, can be required to become a better corporate citizen. With $256 billion in profits last fiscal year and 1.6 million employees worldwide, Wal-Mart's labor-relations model sets far-reaching standards.

The company's willingness to suppress pay and benefits, disregard labor regulations regarding break time and other working conditions, and squash employee efforts to form unions, has a devastating social impact.

When the world's largest employer applies this model to its workforce, it has a hand in legitimizing these practices--and enabling its vendors and rivals to follow suit.

As a result, competition fueled by the violation of workers' rights creates a race to the bottom.

Maryland's "Wal-Mart" law sets a floor for employee benefits among rival businesses. By doing so, the cost of health care benefits will no longer be a variable employers can use to increase profitability.

Maryland is pointing the way. We must demand that our democratic beliefs about fair play, justice and equality be extended to workplaces.

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Wal-Mart and Li ka-Shing seen key to Mexico port expansion

By Nick Carey
Sun Feb 12, 2006             [back to top]

KANSAS CITY, Missouri (Reuters) - Top retailer Wal-Mart Stores Inc. <WMT.N> and Hong Kong magnate Li ka-Shing are key players in a $300 million expansion of Mexico's Pacific port of Lazaro Cardenas aimed at ensuring goods reach U.S. shelves, according to the U.S. railroad that serves the port.

"Wal-Mart and other retailers are looking for backup routes so that even if some ports face stoppages they have reliable backups," Michael Haverty, chief executive of Kansas City Southern <KSU.N>, told Reuters at KCS headquarters here in a recent interview.

As part of current plans, he added, Wal-Mart may build a major distribution center in Kansas City.

When asked about the plans for Lazaro Cardenas and Kansas City, Wal-Mart declined to comment. "It is premature for us to discuss details of this project," said Marty Heires, a spokesman for the world's biggest retailer.

But stoppages in 2004 at the largest U.S. container port complex in Los Angeles-Long Beach and concerns over capacity crunches at U.S. ports have led Wal-Mart and other retailers such as Target Corp. <TGT.N> and Home Depot Inc. <HD.N>, to seek backup routes for a vast tide of imported merchandise.

With U.S. imports seeing double-digit volume growth over the past three years and set for further gains, the search for backup routes has become more urgent, Haverty said.

Analysts have questioned how much business Lazaro Cardenas can bring to KCS. But Haverty said expansion plans by Hutchison Whampoa Ltd. <0013.HK> -- the flagship of Hong Kong magnate Li ka-Shing and operator of the world's top container port in Hong Kong -- include Lazaro Cardenas.

Haverty said an initial $300 million development phase for Lazaro Cardenas planned with Wal-Mart and Hutchison participation, with more investment seen possible, has "the potential to transform our company."

In Hong Kong, Hutchison spokesman Anthony Tam said the company did not wish to disclose plans for Lazaro Cardenas.

But Haverty said most of the $200 million Kansas City Southern has earmarked for investment in Mexico in 2006-2007 will be for track from Lazaro Cardenas.

AVOIDING BOTTLENECKS

Lazaro Cardenas already annually handles 100,000 20-foot equivalent units (TEU), or containers. But Hutchison will add capacity equivalent to 700,000 TEUs a year by 2008, with the option to increase that to 2 million, Haverty told Reuters.

Long Beach handled 14.2 million TEUs in 2005, up 8 percent from 2004 -- much of that driven by shipments from China, which has seen a steadily expanding trade surplus with the United States.

Ports on both coasts of the United States are expanding to catch some of this extra business as big retailers "continue to diversify their port policies," John Lanigan, chief marketing officer at the No. 2 U.S. railroad Burlington Northern Santa Fe Corp <BNI.N>, told Reuters in a separate interview.

Prince Rupert in British Columbia, long the second Pacific gateway for Canada after Vancouver, now touts itself on its Web site as "North America's closest port to Asia."

But via its rail links, Kansas City also hopes to benefit from and promote what Chris Gutierrez of local nonprofit company Smartport describes as an "inland port."

Kansas City Southern Chief Financial Officer Arthur Shoener said a trip from Mexico to Houston or Atlanta on KCS rail lines was 300 miles shorter than for containers from Long Beach.

Lazaro Cardenas would also be cheaper and less likely to suffer labor disruptions than at unionized U.S. facilities.

Shoener said another port-building company besides Hutchison was in talks with the Mexico authorities to build a separate facility at Lazaro Cardenas. He did not name that company.

Haverty said KCS has also discussed Lazaro Cardenas with both Target and Home Depot, but only through intermediaries.

Using Lazaro Cardenas was not what KCS planned in 1995 when it bought a minority stake in Mexico's largest railroad, gaining access to Lazaro Cardenas. At that point, KCS planned to ship goods between manufacturers in Mexico, the United States and Canada in what it touted as the "NAFTA Railway."

After 2004 Long Beach delays, the strategy was reviewed.

Hutchison, encouraged by Danish shipping and oil group A.P. Moeller-Maersk <MAERSKb.CO> -- Wal-Mart's largest shipper -- studied the U.S. coast and Mexico to find additional entry points to the U.S. market, Haverty said. Hutchison has already expanded a facility at the eastern end of the Panama Canal.

"It wasn't until the major delays on the West Coast in 2004 that the potential of Lazaro Cardenas became apparent," Haverty said. "We're not looking to compete with Long Beach because we never could. But there is plenty of additional business to go round."

It makes sense for Wal-Mart to consider moving goods through Lazaro Cardenas because its Mexican unit Wal-Mart de Mexico <WALMEXV.MX> is the largest retailer in the country, Standard & Poor's analyst Andrew West said.

(Additional reporting by Emily Kaiser in Chicago)

© Reuters 2006. All rights reserved.

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Critical documentary on Wal-Mart

by JWSmythe
Sunday, February 12 2006                      [back to top]

A documentary on the perils of runaway capitalism that spotlights Wal-Mart screened at the Berlin Film Festival on Saturday, and interest among European distributors and television networks has been strong. The feature-length documentary focuses on working conditions at the U.S. retail giant and argues that the company treats its employees shabbily in pursuit of maximum profit.

"Wal-Mart is the poster child for the worst in corporate behavior," U.S. director Robert Greenwald said in an interview after his film, "Wal-Mart: The High Cost of Low Price", screened to a large and appreciative audience.

"But it is not only Wal-Mart, it is these issues that affect all of us all around the world."

Wal-Mart, based in Betonville, Arkansas, has criticized the film by saying it is not an accurate portrayal of the company.

"Let's be clear about Mr. Greenwald's intent: it is not to present a fair and accurate portrayal of Wal-Mart," the retailer said in a statement last year.

"It is a propaganda video -- pure and simple -- designed to advance a narrow special interest agenda."

The film, which Greenwald partly financed, portrays Wal-Mart Stores Inc as a monster that destroys the fabric of small towns by killing off small business with discount prices, and as a firm paying poverty-level wages without adequate health cover.

Greenwald, who said he tried unsuccessfully to interview Wal-Mart executives for his documentary, shows how Wal-Mart moved into two small towns in Ohio and Missouri, among other places, and how family-owned stores folded after its arrival.

"Wal-Mart is on a rampage across America but no one is doing anything about it," says hardware store worker John Faenza in the film. Greenwald reports that wages and property values fell when Wal-Mart came to town.

Read More

Editor: We have not reviewed this movie yet, but it would seem to point out the already obvious, which has been covered in numerous news stories.

WalMart, the monolythic undercutting supercenter, is well known for destroying local economies. Small stores have no way to compete with the pricing, even if they are offering the better product. WalMart, like some of it's low-price competition, get "special" products, which appear very similar to the regular retail items.

One example which was pointed out to me a few years ago are the Sony "Handycam" camcorders. We had a damaged unit, so we brought it to a Sony authorized repair center. As soon as we put it on the counter, the tech said "You bought that at WalMart, didn't you?" He was absolutely right. He told us he could tell by the model number. That series is only sold at WalMart. He wasn't surprised that it was broken either. Items built for WalMart are of a far lower quality than the ones sold at other retail stores. So much so that the Sony Handycams which WalMart sells are considered disposable.

This was upsetting to us, since the project I was on had purchased about 30 of these cameras. We found ourselves in a cycle of returning one or two units almost weekly. As WalMart began refusing to exchange the defective units, we started purchasing regular "retail" units, which didn't fail.

I still have one of these lower quality WalMart units. It's an interesting camcorder. It sometimes gets confused and ejects the tape without warning. It will sometimes turn itself on or off, and sometimes just operates normally.

Why did we buy the units from WalMart? Because they were cheaper. Just like every consumer, we look for the "better deal". That purchase of 30 units at WalMart took the purchase away from small local vendors.

Mom and Pop stores close their doors very quickly in the shadow of WalMart stores. In many documented cases, the opening of a WalMart resulted in the death of the town. Once the customer base was gone, WalMart would then shut the doors on their own store, because there was no longer a profit to be made.

WalMart has buying power that Mom and Pop stores don't have. You get better deals with the larger quantity purchases. Mom and Pop store owners cannot afford to buy 100,000 DVD players, or logo T-shirts, and even if they did, they'd never be able to sell them.

Did Mr. Greenwald have an agenda making this film? Maybe. Lets see if he documented the truth, or made a work of fiction.

I was once a WalMart employee. Yes, I was a low-income individual, who needed a job. I worked in one of the vast WalMart warehouses for several months. I saw employees virtually working themselves to death, to make the company happy. One employee broke two fingers while unloading a freight truck. Rather than report the accident and lose his job, he taped his fingers together with packing tape and endured the pain for $8 per hour.

While WalMart was not the worst place I ever worked, it seems their systematic abuse of employees applies to almost all employees. We've seen reports of this frequently. Staff being expected to work off the clock, skipping breaks and lunches. Blatent sexual and race discrimination. And finally, despite their previous "Made in the USA" campaign, they are now one of the largest trading partners with China. It's no wonder the American trade deficit is getting worse. In 2004 WalMart imported $18 billion per year, with a 20% per year growth. This story reports the figure to be between $18 billion and $20 billion for the year 2004.

According to This story, WalMart is responsible for 10% of the United States trade deficit with China.

Imagine what it could do for the U.S. Economy if WalMart started supporting the country it's destroying. Imagine trading in American made items. It's a whole lot better than another blue collar worker finding out that his job was outsourced to China.

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Asda found guilty of trying to blackball union employees

By : Amy Watts 
Sun, 12 Feb 2006                [back to top]

LONDON - Leading supermarket group Asda followed discriminatory policies against trade union employees in its stores, an employment tribunal has ruled. Consequently, Asda could face £850,000 in fines. It was ruled that Asda was guilty of offering inducements to GMB union members in Washington, Tyne and Wear, to negate a collective agreement that had been negotiated by the union.

Each of the 340 union workers stands to gain £2,500 from Asda. "Last year Asda offered GMB members in Washington a pay rise of 10% if they would give up their membership, but our members rejected this," said Paul Kenny, the acting general secretary of GMB union.

"Asda have been found guilty of trying to bribe their way to a union free company. They have now been directed to pay £850,000. The Asda management need to take a clear message from this, that the GMB is not going away and the union will fight on every front to protect our members' right." Meanwhile, Asda said that it was disappointed with the ruling.

The supermarket, which is owned by retailing giant Wal-Mart, said that it was considering an appeal. "When we bought the depot from Wincanton a number of years ago we protected the workers' existing terms and conditions," said Ed Watson, a spokesman for the supermarket.

"After many requests for them to be brought into line with an Asda owned and operated depot close by we gave them the opportunity by ballot whether they supported the move. They voted against any changes and were kept on the existing terms."

Asda has fallen behind supermarkets Tesco Plc and J Sainsbury Plc in the financial states last year. It failed to meet any of its profits goals and was seen to be slow to expand its food range and introduce services like life insurance at its stores.

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A Wal-Mart Grows in Wyoming

by: Chris Steins
Campus Progress via Alternet
11 February, 2006                            [back to top]

I don't know how long my family's printing company can survive, since Wal-Mart moved into my town and displaced most of the local businesses, writes Kat Smyth.

"Shaped by the natural resources that surround it, Rock Springs is filled with small businesses that cater to the needs of its residents. Growing up in a family that started its own business, Smyth Printing, I was raised to believe in the importance of customer service, fast turn-around, and quality products. For twenty-five years, my parents have established partnerships within the community. City Market was the local grocery store where we shopped. I got my hair cut at Lynn's beauty salon and ate cookies at Fred's bakery.

Now, all of those businesses have been wiped out and in their place stands a massive concrete box called Wal-Mart."

"...Back across the street at Smyth Printing, my parents have established a small business whose primary focus is narrowly defined by a particular trade, not five or six. While the nation's largest retailer is struggling to defend itself from public attack on their poverty wages and stingy health care plan, we are looking for ways to keep my family business afloat. While carrying boxes of envelopes into Hemphill Trucking, the owners chat with my father about the booming natural gas wells up North.

...Perhaps Wal-Mart does represent inevitable economic winds of change; nonetheless, we need to fight to protect the small businesses and independent spirit of towns like Rock Springs, Wyoming."

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Critical documentary on Wal-Mart stirs Berlin fest

By Erik Kirschbaum
Saturday 11 February 2006             [back to top]

BERLIN, Feb 11 (Reuters) - A documentary on the perils of runaway capitalism that spotlights Wal-Mart screened at the Berlin Film Festival on Saturday, and interest among European distributors and television networks has been strong.

The feature-length documentary focuses on working conditions at the U.S. retail giant and argues that the company treats its employees shabbily in pursuit of maximum profit.

"Wal-Mart is the poster child for the worst in corporate behaviour," U.S. director Robert Greenwald said in an interview after his film, "Wal-Mart: The High Cost of Low Price", screened to a large and appreciative audience.

"But it is not only Wal-Mart, it is these issues that affect all of us all around the world."

Wal-Mart, based in Betonville, Arkansas, has criticised the film by saying it is not an accurate portrayal of the company.

"Let's be clear about Mr. Greenwald's intent: it is not to present a fair and accurate portrayal of Wal-Mart," the retailer said in a statement last year.

"It is a propaganda video -- pure and simple -- designed to advance a narrow special interest agenda."

Greenwald's film, which has sold 110,000 DVDs since November and been shown in a limited theatrical release in the United States, was quickly snapped up by distributors in Britain, Germany and Australia.

The film, which Greenwald partly financed, portrays Wal-Mart Stores Inc as a monster that destroys the fabric of small towns by killing off small business with discount prices, and as a firm paying poverty-level wages without adequate health cover.

Greenwald, who said he tried unsuccessfully to interview Wal-Mart executives for his documentary, shows how Wal-Mart moved into two small towns in Ohio and Missouri, among other places, and how family-owned stores folded after its arrival.

"Wal-Mart is on a rampage across America but no one is doing anything about it," says hardware store worker John Faenza in the film. Greenwald reports that wages and property values fell when Wal-Mart came to town.

Images of boarded-up shops accompanied by haunting Bruce Springsteen songs deliver a powerful message about the excesses of capitalism, one which scares many Europeans.

"Wal-Mart is sucking down standards around the world," the narrator says. Greenwald includes interviews with ex Wal-Mart managers and employees detailing poor treatment of staff.

"Wal-Mart is abusive in ways that other corporations that are committed to profits are not," Greenwald told Reuters.

"They have a culture that says it's okay to do anything as long as it's good for profits. It's okay not to give employees health insurance. It's okay to take money away from communities to build Wal-Marts.

"I don't believe there is any other company that is as aggressively exploiting people as Wal-Mart."

© Reuters 2006. All Rights Reserved.

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Wal-Mart, Realtors trying to revive new store at 53rd and Meridian

Bill Wilson
Wichita Business Journal
February 10, 2006                        [back to top]

Rumors surrounding the demise of Wal-Mart's proposed supercenter at 53rd and Meridian might yet prove exaggerated.

Talks are under way to address traffic and noise concerns that led the Wichita City Council in December to unanimously reject a proposal to build a supercenter on the northwest corner of 53rd and Meridian.

Wichita City Council member Sharon Fearey says Wal-Mart will present "substantial changes in their plan" to the Wichita Area Metropolitan Planning Commission and affected district advisory councils this spring. Those changes haven't been finalized.

Then Fearey plans to convene a meeting in District 6 to gauge the public's response to the changes.

"I tend to listen to the people," she says. "Then, we'll go from there."

Wal-Mart spokeswoman Angie Stoner in Bentonville, Ark., says the company is reviewing the council decision and looking for ways to move the project forward.

Mike Loveland, a Realtor with J.P. Weigand and Sons Inc. in Wichita who brokered part of the land deal with Wal-Mart, says the land remains under contract to the Arkansas retailer.

During a Dec. 13 council meeting, Fearey led the charge against the store, saying it threatened the retail character of the neighborhood.

Neighbors said the 24.7-acre store would have brought excess traffic and noise to the residential area. Plans included a department and grocery store, an express lube and tire center and drive-thru service in the pharmacy and garden center.

© 2006 American City Business Journals Inc.

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Wal-Mart and Monsanto on Indo-U.S. Agriculture Initiative board

By Gargi Parsai
Friday, February 10, 2006             [back to top]

NEW DELHI - The United States-based multinationals, Wal-Mart and Monsanto, are on the board of the Indo-U.S. Knowledge Initiative on Agriculture Research and Education. It will set the agenda for collaborative farm research with Indian laboratories and agricultural universities.

In India, the universities on their own and through Krishi Vigyan Kendras serve as extension agencies for farmers on the field and have a wide reach.

The influence of the American private sector became obvious to Indian scientists during the first meeting of the board in Washington DC in December 2005. Representatives of the Wal-Mart food chain and the Monsanto Seed Corporation were keen on using the Initiative for retailing in agriculture and on trade aspects. Transgenic research in crops, animals and fisheries would be a substantial part of the collaboration in biotechnology, requiring India to pledge huge funds.

Issues of Intellectual Property Rights and Benefit-Sharing were also discussed. India is endowed with rich biodiversity and has a huge bank of germ plasm and genetic resource material in the public research system.

India is looking for joint ownership or joint patents, whereas in the U.S. much of the transgenic and hybrid agricultural technology is with the corporates.

Indian Council of Agriculture Research Director-General Mangala Rai is the co-chair of the Board along with Ellen Terpstra, Administrator of the U.S. Department of Agriculture's Foreign Agriculture Services. There will be seven members on each side.

Only private funding

According to well-placed sources, the American side clearly told the Indians that there would be no U.S. government funding.

In their university system, research is funded by the private sector, which will then hold the patent on a technology. Even technologies developed with public funds are licensed to corporates.

But India will have to pay even the "tuition fee" to scientists who visit America for "capacity building" and training. It is also expected to allocate up to Rs. 400 crores over three years towards the Initiative. Of this, about Rs. 300 crores will be for research in transgenic and biotechnology.

Sources said this came as a jolt to scientists, who were looking for a yesteryear kind of development and application-oriented collaboration and technology dissemination with substantial U.S. funding.

But for the appointment of a joint secretary on the board, the Union Agriculture Ministry has virtually no direct role. Planning Commission Deputy Chairman Montek Singh Ahluwalia is directly and closely involved in the Initiative.

Priority areas

After considering a 56-page Indian draft proposal, the board identified four major priority areas. They are: Human Resource and Institutional Capacity Building; Agri-Processing and Marketing; Emerging Technologies and Natural Resources Management. The Indian side had sought priority collaboration on Climate Change, Soil and Waste Management, IPR, Bio-safety, Food Safety, Regulatory Frameworks, Post-Harvest Management, Value Addition, Food Marketing, Product Handling, Nanotechnology, Vaccines and Diagnostics and Precision Farming.

Four areas

However, the Board agreed only on four areas in the short term: Education, learning resources, curriculum development and training; Food Processing and use of bio-products and bio-fuels; Biotechnology and Water Management.

Hectic and hush-hush preparations are on to finalise a Work Plan next week, in time for a formal announcement by U.S. President George Bush when he arrives in India in March.

Copyright © 2006, The Hindu

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City looks into land owned by Wal-Mart

By Tom Lochner
CONTRA COSTA TIMES            [back to top]  

Hercules is exploring acquiring land owned by Wal-Mart near the city's waterfront, where the retail giant planned to build a store. Hercules City Manager Mike Sakamoto said Friday the city's appraiser wrote Wal-Mart a letter earlier this week, but the city has not received any response. Wal-Mart spokesman Kevin Loscotoff said Friday he is aware Wal-Mart has received a letter from an appraiser but could not comment further. In December, Wal-Mart applied to build a 142,000-square-foot store at the future Bayside Marketplace, which it acquired from a developer in the fall. The 17-acre property is along John Muir Parkway about midway between San Pablo Avenue and San Pablo Bay. A vocal group of opponents has opposed Wal-Mart's plan for a variety of reasons, both local and global. A city staff report earlier this month found Wal-Mart's plan inconsistent with a 2003 development agreement that called for a neighborhood shopping center with the largest store limited to 64,000 square feet. Wal-Mart withdrew its application last week but left open the possibility it would reapply. Last week, after withdrawal of the application, Loscotoff said Wal-Mart was still committed to going forward. Some Wal-Mart opponents have urged the city to invoke eminent domain to acquire the property. Sakamoto said that although eminent domain is on a city's menu of options, any talk of it now would be premature. "The City Council is reviewing its options with regards to acquiring the property" and is considering "different steps," Sakamoto said.

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Residents voice Wal-Mart concerns

By Tom Lochner
CONTRA COSTA TIMES
Thu, Feb. 09, 2006                 [back to top]  

About 70 residents denounced Wal-Mart at a Planning Commission meeting Monday, even after the retail giant took itself off the agenda by pulling its plan for a store near the waterfront -- at least for now. Residents described Wal-Mart as an economic predator that strip mines communities for their retail dollars, leaving the carcasses of neighborhood businesses in its wake. Going global, they blasted Wal-Mart's labor practices nationwide and abroad in addition to warning of traffic and blight in their town. A former resident of Romania said Wal-Mart supports communism as a large-scale dealer of Chinese goods manufactured by "slave labor." Another speaker urged the city to invoke eminent domain to take Wal-Mart's property and market it to a friendlier retailer.

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Wal-Mart's Ambitions in India

By Isabelle Sender
Market Views
FEBRUARY 9, 2006              [back to top]  

While the retail giant continues to explore market opportunities, government restrictions may keep it out

Global retail giant Wal-Mart (WMT ; S&P investment rank 5 STARS, strong buy; recent price, $46) is still bullish on India despite bearish signals from the Indian government.

After trying for months to move into the world's second-most populous nation, the giant merchant won't be checking out of India just yet, in the opinion of Standard & Poor's Equity Research Services, despite a trade policy that prohibits foreign general merchandisers to set up shop there. Wal-Mart stated on Feb. 2 that it has applied to create a separate entity in Bangalore devoted to "market research and business development in relationship to the retail industry in India."

"I think that has been no secret that we think the market opportunity in India is really outstanding," Wal-Mart spokeswoman Beth Keck told the Associated Press on Feb. 2.

DOORS OPENING? "This is just another example of Wal-Mart's efforts to expand operations in India," says Joseph Agnese, an equity analyst with Standard & Poor's. "The company already sources a significant amount of goods from India. There is plenty of room for expansion internationally, in our view. The company is looking at India as one of many opportunities." Economists expect India to increase its gross domestic product by about 7% in fiscal 2006 (ending March). That's about the same as the country's income growth rate, estimated between 7% and 7.5%.

"Total consumption expenditure is likely to grow at over 6%," Siddhartha Roy, chief economist at Tata Group, estimated during a recent economic panel discussion.

The Indian government opened the doors of its retail market to 51% foreign direct investment (FDI) two weeks ago. But this most recent economic liberalization applies strictly to companies that sell goods through single-branded stores. The partial allowance permits a direct majority ownership interest by foreign entities, which, we think, is good news for many of the world's marketers of top labels.

GROWING MARKET. In S&P's view, the widely anticipated FDI policy for limited retail investment, however, effectively slams the "Closed" sign on big-box chains and particularly Wal-Mart, feared by India's Communist party as potentially putting mom-and-pop stores out of business by sheer virtue of its size. The retail behemoth rang up slightly more in retail sales for the year ending January, 2005, than the entire Asian subcontinent sold to its population of more than 1 billion, a quarter of whom live in poverty.

Still, Agnese believes that the FDI policy is a step in the right direction toward India opening its retail industry to 100% investment one day. Currently, annual retail sales in India are estimated at between $200 billion and $280 billion. Wal-Mart has been arguing that it is a prime candidate to benefit the most from retail FDI in India, where it has been lobbying for policy change while looking for an Indian joint-venture partner.

India's booming economy, consumerism, and middle class is a key focus for the giant chain. In June, John Menzer, then-president and CEO of Wal-Mart's international operations, devoted most of a 30-minute speech to an account of his recent trip to the subcontinent. "The consuming class has grown from 35 million families in 1996 to an expected 80 million [in 2005]. That's roughly in line with the U.S.," Menzer explained to shareholders and analysts.

BUYING IN. Wal-Mart's experience in emerging markets is the crux of its battle plan. Bentonville has been down this path of limited investment in retail before. Not too long ago, it battled anti-FDI sentiment in Mexico. In S&P's view, Wal-Mart won that battle. It is now the biggest private employer in Mexico and operates more than 780 stores in that country. And even in communist China, Wal-Mart operates 56 joint-venture stores as of Jan. 31.

The new India policy, while disallowing much foreign direct investment, does not prevent institutional investors from acquiring more than 51% of any Indian retail company. Foreign institutional investors (FII) can own 100% of Indian retail companies. Some Wal-Mart watchers say it may go the FII route, now that the FDI route is blocked.

Wal-Mart, however, says that's not the plan. "Wal-Mart executives still hope to be able to open up stores in India in the future," Agnese said, after speaking with Wal-Mart management about India plans. "When I asked about the possibility of Wal-Mart entering [India's retail sector] by taking an equity interest in an existing company, the response was that it currently is not interested in any existing operations in the country."

QUICK CHANGE. Ajit Dayal, CEO and chief investment officer at Quantum Advisors, an asset management company based in Bombay, says that foreign big-box retailers would have to surmount many operational challenges in India if they were to enter India directly or through an investment partner.

"We're not sure that what is considered a prime location for a retailer today is going to be defined as a central business district tomorrow. There is so much growth that centers of gravity within the time frames of available financing shift too quickly," he says.

Dayal believes that in addition to the pace of change that redefines business districts at an exponential pace, logistics on the size and scale that Wal-Mart is accustomed to would not be plausible to implement. He thinks that the current environment does not bode well for Wal-Mart or other big-box operations, based on the stark difference between the current benchmark for a typical retail store in India and Wal-Mart's traditional footprint. So while Bentonville remains positive on the subcontinent, its passage to India may be a difficult one.

Copyright 2000- 2006 by The McGraw-Hill Companies Inc. All rights reserved.

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Migden proposes `Wal-Mart' bill

GIANT RETAILER WOULD BE REQUIRED TO CONTRIBUTE MORE TOWARD HEALTH CARE SACRAMENTO

The San Jose Mercury News
February 9, 2006                           [back to top]  

Modeled after a controversial Maryland law, a California state senator today announced she will introduce legislation that would require Wal-Mart and other employers with more than 10,000 employees to spend at least 8 percent of total wages on health benefits.

``More Californians are uninsured than the populations of Connecticut, Maine, Rhode Island and Vermont combined,'' said Sen. Carole Migden, D-San Francisco. ``Three-quarters of them are in working families whose employers do not offer them health insurance coverage. This bill will go a long way toclosing this gap.''

Though the bill targets all employers with more than 10,000 employees -- there are believed to be as many as 25 in the state -- most, including the State of California, already meet the threshold.

Wal-Mart, which argues that it is being unfairly targeted by such proposals, employs roughly 70,000 Californians at an average salary of nearly $15,000, according to Migden. Her bill would force the nation's largest retailer to pony up an estimated $50 million toward employee health care coverage.

The bill would not apply to fast food giants, convenience markets or other businesses that operate as individually owned franchises.

This week, a national retail industry trade association filed suit challenging the Maryland law -- primarily to discourage other states from adopting similar laws.

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Wal-Mart workers' healthcare

By Fred Frost
The Miami-Herald (FL)
February 9, 2006                          [back to top]  

It's no secret that America's healthcare system is broken, and that any solution is hopelessly caught in the great legislative traffic jam we call Washington, D.C. But Floridians don't have to wait around for help from the White House to win basic healthcare rights. We have a chance to move forward and demand that major corporations doing business in our state pay their fair share of healthcare costs. It's wrong that large corporations such as Wal-Mart weasel out of their duty to provide health insurance for their employees and shift those healthcare costs onto others, much like deadbeat dads or corporate polluters who close up shop before the cleanup costs come due.

The problem is widespread. A landmark study by the Commonwealth Fund found that among companies with 500 or more employees, more than a quarter of their workers actually don't receive any health-insurance coverage whatsoever from their employers.

Paid below-poverty wages

Who pays the price?

Of course, their employees are the main victims. Most Americans understand that healthcare should be a right -- but these workers have nothing of the sort. Although they do the best they can to make ends meet, millions live in fear that they or family members will get sick because there is no way they can pay for a doctor or hospital.

A large number of those who are paid below-poverty wages, through no fault of their own, have to rely on Medicaid or other state programs when they become ill.

That means that if you're a taxpayer, you pick up the tab every time a business doesn't pay its fair share for healthcare and pushes its employees onto these public-funded programs. The tab is colossal. The Commonwealth Fund estimates that taxpayers are paying $21 billion to cover workers whose employers don't provide health insurance.

Others are also paying the price for deadbeat businesses. If you're a businessperson who does the right thing and provides health insurance for your employees, you pay dearly for the businesses that don't.

Not only are they tilting the competitive playing field, unethically cutting their costs, undercutting you and putting you at an unfair disadvantage. You and your employees also pay higher health-insurance premiums to cover care for those companies' employees. That is because healthcare providers, when serving workers with no insurance, have to raise their fees to cover their own shortfall. The bottom line is that you and your employees get hit with much higher bills.

Sensible, fair solution

According to Commonwealth Fund, businesses like yours are paying an estimated $31 billion extra every year to cover employees of those businesses who aren't pulling their own weight.

Is it unjust? Absolutely. But fortunately, there is a sensible and fair solution. Responsible businesspeople, union members, community leaders and other reformers in Florida now have a chance to join together to support a new Fair Share Health Care bill, HB 813 and SB 1618.

It would require large employers with at least 10,000 employees to pay their fair share of their employees' healthcare -- 9 percent of their payroll costs. They could either use those funds for health insurance for their employees or contribute the money to a state fund.

Not only does the idea make good sense; it has enormous popular backing. In a recent Lake Research poll, 83 percent of Americans said that they support requiring large, profitable companies either to provide health insurance for their employees or pay a percentage of their payroll into a healthcare fund.

State legislators, prepare

Still, it probably won't be easy to pass this reform. When Fair Share Health Care legislation came up in Maryland last year, Wal-Mart -- which has become notorious for illegally violating its employees' most basic rights -- flew in a platoon of lobbyists and waged a full-throttle campaign to stop the bill.

In the end, Maryland's courageous legislators defied Wal-Mart's pressure and passed Fair Share Health Care, and even overrode Maryland's right-wing Gov. Bob Ehrlich's veto.

Wal-Mart and its allies are poised to use the same tactics in Florida. Our state legislators must do the right thing and make sure that Florida workers and their children have the basic healthcare they deserve. After all, they were elected to represent our state -- not Wal-Mart.

Fred Frost is president of the South Florida AFL-CIO.

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Wal-Mart, others file lawsuit against 'fair share healthcare' law

Mike Burns
Earthtimes.org
Posted on : 2006-02-08                   [back to top]  

Retailers plan to oppose any move to enforce 'fair share' healthcare legislation that requires them to spend more on their workers' healthcare. The Retail Industry Leaders Association (RILA), of which Wal-Mart is a member, yesterday filed a lawsuit challenging a state law that was recently passed in Maryland.

The Maryland law makes it mandatory for companies with more than 10,000 employees to contribute at least 8 percent of payroll, either towards Basic Health Plan (BHP) or the state-subsidized Medicaid fund.

BHP covers mostly low-income employees and is funded entirely by the government. Medicaid makes health coverage available to families on welfare and children from low-income families.

Wal-Mart said it supported the law, even though the grocer and other members of the RILA were concerned that other state senators could follow the example and push for similar legislation in their states.

The Maryland mandate passed on January 12 is the first of its kind in the country and directly affected Wal-Mart which was the only Maryland company employing more than 10,000 people. It had support from unions like SEIU and UFCW and the unionized supermarket Giant Foods.

The RILA filed one more lawsuit challenging a similar health care law in Suffolk County, Long Island. The RILA members have reason to be concerned. Last week, a television campaign by the United Food and Commercial Workers International Union urged lawmakers to pass similar bills for their states. If the campaign is effective, more than 20 states would have similar laws affecting retailers' businesses.

Companies that are certain to be affected by such laws include, Safeway, Fred Meyer and Target, besides Wal-Mart.

The RILA said all its members agreed “that access to healthcare is vital. But these spending mandates will drive away business and discourage job creation.” They would also take away the flexibility of these businesses, it said.

The retailers' group said it considered the Maryland law “bad policy” It also violates the constitutional clause of 'equal protection', a RILA spokesperson said.

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Group Files Challenge to Wal-Mart Law

Group Challenges Md. Law Meant to Pressure Wal-Mart to Spend More Money on Workers' Health Care

By KRISTEN WYATT
The Associated Press              [back to top]  

ANNAPOLIS, Md. - Retailers are concerned that state and local laws requiring companies to spend more on workers' health care could become a trend. Now they're seeking to send a message to elected officials around the country who are considering such bills.

A trade group filed two lawsuits Tuesday against so-called "fair share" health care laws, seeking to block state and local governments from enforcing them. But the store owners' attention is clearly on the agendas of legislatures in at least 30 states, where unions say lawmakers could consider bills similar to those passed in Maryland and Suffolk County, N.Y.

"We certainly hope that the other states ... will pause and look at what we're doing in Maryland and Suffolk County and consider that these are unwise and unlawful laws," said Sandy Kennedy, president of the Retail Industry Leaders Association, which filed the lawsuits.

Unions and health care advocates are pushing for mandates patterned after the Maryland law, which requires companies with more than 10,000 employees in the state to spend at least 8 percent of payroll on health care or contribute the difference to the state Medicaid fund.

Wal-Mart, based in Bentonville, Ark., is the only company in Maryland of that size that doesn't meet the 8 percent threshold. Backers of the law said it was needed because some Wal-Mart employees rely on taxpayer-funded Medicaid health coverage.

The company supports the lawsuits because health care benefits should be mandated by the federal government, not the states, said Dan Fogleman, a Wal-Mart spokesman.

"We believe that the health care challenges facing our country are a national challenge that require national solutions," Fogleman said.

The lawsuit argues that state and local governments are not allowed to mandate levels of health care coverage by private companies. Both lawsuits ask federal judges to grant injunctions to prevent enforcement of the laws.

"States may not mandate benefits for private employers," said W. Stephen Cannon, a lawyer representing the Arlington, Va.-based retail group.

The organization represents more than 400 companies that operate a total of more than 100,000 stores with more than $1.4 trillion in annual sales, including Wal-Mart. Kennedy said Wal-Mart has a seat on RILA's board, but that other board members joined in authorizing the lawsuits.

The RILA lawsuit argues that Maryland's law "arbitrarily singles out one company for discriminatory treatment."

Several other states, including West Virginia and Washington, have begun discussing whether Wal-Mart should be required to pay more for health care. Union leaders who pushed Maryland's bill have said at least 30 states may use Maryland's law as a template.

A supporter of the Maryland law, Progressive Maryland, criticized retailers for suing over the change.

"It's desperado time for the world's biggest corporation," said Sean Dobson, head of Progressive Maryland. "The people's elected representatives imposed responsibility on Wal-Mart, and now they're trying to undo it with their squadrons of lawyers and their infinitely deep pockets."

After hearing of the lawsuit, Republican Gov. Robert Ehrlich called the Wal-Mart law "ridiculous" and said he wasn't surprised by the lawsuit. Ehrlich vetoed the bill, but the legislature overrode his veto last month.

"It's yet another chapter in a negative story for Maryland," Ehrlich said.

Associated Press writer Tom Stuckey in Annapolis contributed to this report.

Copyright 2006 The Associated Press. All rights reserved.

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Sen. Clinton urges caution on Wal-Mart bank bid

By Kristin Roberts
Wed Feb 8, 2006               [back to top] 

WASHINGTON (Reuters) - New York Democrat Sen. Hillary Clinton has entered the debate over Wal-Mart's controversial bank application, telling regulators she has "serious reservations" about allowing companies to enter financial services by exploiting a "loophole" in U.S. law.

According to a February 3 letter obtained by Reuters on Wednesday, Clinton, a former Wal-Mart board member, told the Federal Deposit Insurance Corp. the retailer's bid to open an industrial loan company (ILC), if successful, could have a significant impact on the financial sector.

"After hearing from very concerned constituents about Wal-Mart's application for federal insurance for their ILC, I see this as a time to urge the FDIC to give serious and careful review to the relevant issues before moving forward on any application for federal insurance," Clinton wrote to the FDIC's acting chairman.

"Indeed, I believe that any action by the FDIC that would lessen or loosen the oversight for ILCs while granting it the same privileges and functions of traditional commercial banks would be a critical mistake and stand in stark contrast to the fundamental principle of the separation of banking and commerce."

Clinton's letter is the latest in a string of correspondence from Capitol Hill to the FDIC urging the regulatory agency to either oppose or move slowly and carefully on the application from the world's largest retailer to open an industrial bank in Utah.

A spokesman for the FDIC said the agency's acting chairman had received Clinton's letter but had not yet responded. He declined further comment.

Industrial banks are state-chartered and state-regulated, and fall under the supervision of the FDIC. Commercial companies may own them because federal laws that bar non-financial companies from engaging in banking activities do not classify them as banks.

Wal-Mart is trying to open a bank to handle electronic payment processing.

But some legislators have raised concerns that Wal-Mart could use its bank as a base to offer a much wider array of services. Banks also fear competing with Wal-Mart.

Others who oppose Wal-Mart's application adopt the argument used recently by Clinton and the National Association of Realtors -- that Wal-Mart's bank would violate the historic separation in the United States between banks and enterprises that do not engage primarily in finance. Still, other corporations have already set up industrial banks, such as General Electric and General Motors.

Former Federal Reserve Chairman Alan Greenspan recently said Congress should review a "loophole" in federal law that allows companies to buy industrial banks in a handful of states but avoid a level of supervision by bank regulators.

Clinton referenced Greenspan's comments and said industrial banks may pose a greater risk to the FDIC than other insured depository institutions.

"With the dramatic expansion of ILCs over the last several decades, I am particularly concerned that these financial institutions do not have the same oversight and regulatory structure that traditional, full-service commercial banks have," she wrote.

The FDIC, under a new acting chairman, has agreed to hold a public hearing on Wal-Mart's application. That would be the agency's first formal public hearing on a bank application ever. A subcommittee in the House of Representatives also is expected to hold a hearing on industrial banks this year.

Wal-Mart has said it welcomes the hearings. It was not immediately available to comment on Clinton's letter.

© Reuters 2006.

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Health-Care Law Aimed at Wal-Mart Challenged in Court

By Randy Hall
CNSNews.com
February 08, 2006                [back to top] 

(CNSNews.com) - A national retail association filed lawsuits Tuesday challenging two measures that legislate the amount businesses spend on employee health care, including a Maryland law that targets Wal-Mart Stores, Inc.

The Retail Industry Leaders Association (RILA) filed its challenges in U.S. district courts in Baltimore and Brooklyn to test laws in Maryland and Suffolk, County, N.Y., that "unlawfully mandate a specific health-care expenditure, single out the retail industry and threaten to eliminate the flexibility that businesses require to meet the needs of their diverse workforce," according to a press release.

"We all agree that access to health care is vital, but these spending mandates will drive away business and discourage job creation," said Brad Anderson, chairman of RILA and vice chairman & CEO of Best Buy Co., Inc. "They're simply unlawful and unwise."

"The health plan spending mandates that we are challenging today do nothing to fix the problem they claim to address and, in fact, divert focus and resources away from real solutions," said RILA President Sandy Kennedy.

According to the organization's website, RILA is a trade association with member companies that operate more than 100,000 stores, manufacturing facilities and distribution centers and have facilities in all 50 states. Together, RILA members account for over $1.4 trillion in annual sales.

RILA's board of directors unanimously agreed to initiate litigation because "the health-care system cannot be fixed with a patchwork of state and local mandates that require individual industries to play by different rules," according to James Myers, CEO of PETCO Animal Supplies, Inc., a RILA member. "It's a national issue that requires a national approach."

In Suffolk County, N.Y., the law specifically targets large, non-unionized food retailers, which must make health-care payments at a rate of no less than $3 per hour worked.

As Cybercast News Service previously reported, the state of Maryland on Jan. 12 passed the Fair Share Health Care Act, requiring large, private companies doing business in the state to spend at least 8 percent of their payrolls on employee health benefits.

This law is specifically aimed at RILA member Wal-Mart, and union-financed foes of the retail giant are working to introduce similar bills in at least 30 states this year, though legislatures in Wisconsin and Indiana have already voted down their versions of Fair Share statutes.

A RILA spokesman also said the laws in Maryland and New York are invalid because they violate the federal Employee Retirement Income Security Act (ERISA).

"Over the past three decades, the Supreme Court of the United States has held repeatedly that ERISA, not state and local laws, regulates employer health plans," said Steve Cannon of the Constantine Cannon law firm, which is serving as outside general counsel to RILA.

"Now that the legislative process has played out in Maryland and Suffolk County, it is time to challenge these newly enacted health plan mandates in the courts," Cannon said. He also asserted that the statutes violate the Equal Protection Clause of the U.S. Constitution because they were written to single out specific companies for arbitrary treatment.

However, Paul Blank, campaign director for WakeUpWalMart.com, dismissed the litigation filed Tuesday as "just another attempt by Wal-Mart and its allies not to pay its fair share for health care in the state of Maryland and elsewhere."

Blank, whose organization is funded by the United Food and Commercial Workers International Union, noted that "the Maryland attorney general has already said Fair Share Health Care legislation is in compliance with the law.

"Wal-Mart would be better off changing its behavior and living up to its responsibilities," Blank added "States should be applauded, not sued, for trying to address the fact that in every state where we have data, Wal-Mart is costing taxpayers millions by having more employees on taxpayer-funded health care than any other employer."

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Report says Wal-Mart, others cost state millions

By CURT WOODWARD
Associated Press
Feb 7                                   [back to top] 

OLYMPIA, Wash. (AP) -- Wal-Mart and other large retailers are pushing tens of millions of dollars per year in health costs onto taxpayers, a new report produced for Democratic state senators says.

Supporters of a bill that would force large companies to pay a minimum amount for health benefits plan to use the new data to press lawmakers for a vote on the measure.

Wal-Mart officials and business groups have railed against the proposal, saying it is meant to punish certain businesses and will have no real effect for workers who need help paying their hospital bills.

The report estimates that in 2004, Wal-Mart workers received more than $22.7 million in taxpayer-funded health benefits. More than $12.1 million of that total came from Washington state's coffers.

Democratic lawmakers and union activists discussed the findings at a Tuesday news conference. An early copy of the report was obtained by The Associated Press through a public records request.

"This is a serious public policy discussion. We need to have an analysis of why this shift is occurring," said Rep. Steve Conway D-Tacoma, a co-sponsor of House legislation aimed at Wal-Mart's health care spending.

Wal-Mart spokeswoman Jennifer Holder questioned the report's accuracy and said company officials have been denied access to key state data on the subject.

In any case, employment numbers used to generate the cost figures are from 2004, and Wal-Mart has vastly improved its health care benefits since then, Holder said.

"It's an apples and oranges comparison from Wal-Mart in 2004 to Wal-Mart today," she said.

The bills being considered in Washington this year are part of a push by organized labor in more than 30 states to force minimum health care spending by employers.

On Tuesday, the Retail Industry Leaders Association, a trade group, sued to challenge a Maryland law designed to pressure Wal-Mart and other large companies to spend at least 8 percent of payroll on health care or contribute the difference to the state Medicaid fund.

Washington state's version would require companies with at least 5,000 workers to contribute an amount equal to 9 percent of their payroll to health benefits.

State Senate staffers based estimates in the report on figures from two earlier confidential reports detailing which employers in Washington had the most workers receiving government health benefits in 2004.

In those reports, Wal-Mart was the leader in workers receiving government health assistance. The world's largest retailer has about 16,000 employees in Washington.

Using the earlier reports as a base, Senate staff members figured that Wal-Mart had an average of 3,180 employees on the state-federal Medicaid program and 456 on the state-funded Basic Health Plan in 2004.

The report includes public-health cost estimates for three other large retail or grocery outlets: Safeway, with more than $10.8 million spent on its workers; Fred Meyer, with more than $7 million; and Target, with more than $5.8 million.

Don Brunell, president of the Washington Association of Business, said targeting certain employers with spending mandates will not solve the underlying problems with expensive health care.

"A lot of folks are realizing ... the issue is much more complicated," he said. "It's not going to be solved with a Wal-Mart bill or anything else."

But Democrats said the measure would help stop what they see as an erosion in employer support for health care.

Other companies mentioned in the report - particularly Safeway and Fred Meyer - have been effectively forced to cut benefits as they try to compete with Wal-Mart, said Sen. Jeanne Kohl-Welles, D-Seattle.

"I don't know that we can blame them," said Kohl-Welles, a primary sponsor of the measure. "If corporations all did the responsible thing - and most do - we wouldn't need this legislation."

Officials computed an average monthly cost to the state of $182 for workers on Washington's Basic Health Plan. Each worker who received Medicaid benefits was assumed to cost the state an average of $291 per month. The report also calculates the federal share for Medicaid clients.

The reports do not attempt to calculate the additional cost of taxpayer health benefits for dependent children of those workers. But the report said costs would increase by 20 percent for each Medicaid-eligible child supported by a worker.

Adding covered children would greatly increase the figures in Tuesday's report, bill supporters said. "We're looking at huge numbers here," said Sen. Karen Keiser, D-Kent.

Wal-Mart, however, says more than 615,000 of its 1.3 million workers are covered by company health plans. The company also says it has taken some 160,000 people off the uninsured rolls.

---

The health insurance bills are SB6356 and HB2517.

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N.J. wants large employers to spend more on health care

By Jonathan Tamari
Courier-Post (NJ)
February 7, 2006                    [back to top] 

TRENTON -- Saying some large companies such as Wal-Mart are shirking their responsibilities to provide health care to employees, state senators took up proposals Monday aimed at forcing employers to pay more for coverage. One measure would force companies with more than 1,000 employees to spend at least $4.17 per hour for their workers' health care. Companies that fall short would have to pay into a state fund that provides health coverage for the poor.

Another bill would require the state to track companies whose workers use FamilyCare, a state health insurance plan meant for the poor. Democrats and employee union leaders said big companies are forcing workers into the taxpayer-funded program by offering health insurance that is either limited or too expensive.

"The taxpayers of the state of New Jersey should no longer bear the burden of funding health care for corporations that are making hundreds of millions of dollars in the state," said Sen. Stephen M. Sweeney, D-West Deptford.

Business advocates, however, said forcing health-care costs up is effectively a new tax that will hurt business.

"This bill sends an anti-business message to companies across the country," said Jeanette Issenman of the Commerce and Industry Association of New Jersey.

The bill requiring health-care spending is similar to measures that unions have pushed in more than 30 other states. It was discussed by a Senate committee Monday, but no formal action was taken.

"Every one of our state residents deserves equal access to the finest health-care available," said Sen. Joseph F. Vitale, D-Woodbridge, one of the bill's sponsors.

There are 340 companies in New Jersey with 1,000 or more employees, according to the state Department of Labor and Workforce Development. Wal-Mart, with about 12,274 workers, according to the latest state figures, is one of the state's largest employers.

Wal-Mart spokeswoman Kelly Hobbs called the bill "an arbitrary mandate on large employers," adding that many people, not just Wal-Mart workers, are uninsured.

Several business advocates pointed to a recent Kaiser Family Foundation study that said the average health-care plan for one person costs companies about $4,000 a year. Those companies would have to pay more than $7,500 a year for employees who work 35 hours a week, however, under the health-care bill.

"This legislation, in effect, would create a new tax," said Christine Stearns, vice president of the New Jersey Business and Industry Association.

A recent study by liberal think-tank New Jersey Policy Perspective said many workers at large companies rely on FamilyCare for health insurance. A bill sponsored by Sen. Barbara Buono, D-Metuchen, would require the state to list those companies. That measure advanced out of the Senate Health, Human Services and Senior Citizens Committee.

"(FamilyCare) was never intended to be exploited by some of the largest and most profitable retailers," Buono said.

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Wal-Mart to open about 1,500 new stores

By MARCUS KABEL
AP Business
FEB. 7                        [back to top] 

Wal-Mart Stores Inc. plans to open more than 1,500 stores in the United States in the coming years, on top of nearly 3,200 it already operates, the world's largest retailer said Tuesday. John Menzer, the company's vice chairman and head of its domestic Wal-Mart stores division, said Wal-Mart was on schedule to meet an announced target of between 335 and 370 new U.S. store openings this year after 341 last year. That number includes Wal-Mart discount stores, Supercenters that also have a full grocery section, smaller Neighborhood Markets and Sam's Club membership warehouses. Supercenters are the largest single group with 1,980 locations in the U.S. and the focus of future growth plans.

Menzer did not specify a timeline for the new stores. He also did not refer to zoning and permit fights that have erupted in some places where Wal-Mart wants to expand, including big markets such as California where the company has fewer locations than in its traditional bases in the South and Midwest. "We are really focused on opening new stores right now. We see so many opportunities to open new stores that that's where our capital is going first," Menzer said during a Web cast from a financial conference hosted by Citigroup in Miami. Wal-Mart opened 69 new stores and Sam's Clubs in January, a company record for one month, it announced last week. Menzer said 1,800 of its existing Supercenters would be remodeled over the next 18 months to make them more inviting, adding touches such as faux wood floors, wider aisles and digital television display walls. The remodeling program, which Menzer said would not require a large capital outlay, is part of a broader strategy to interest consumers who are already in the store for basics to buy more fashions, electronics, home furnishings and fancier foods. Wal-Mart began working on the remodeling program last year, and formally unveiled it in October at its annual meeting with analysts. As part of its growth plans, Wal-Mart also is experimenting with new formats for Supercenters to fit the big box structures into tighter urban neighborhoods. New styles will include multilevel stores and underground or above-store parking rather than a huge lot out front

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Retail group files challenge to Wal-Mart law

English Business News
02/07/2006                           [back to top] 

ANNAPOLIS, Maryland_A national retail industry trade association filed suit Tuesday challenging a Maryland law designed to pressure Wal-Mart Stores Inc. to spend more money on health care for its employees.

The law, the first of its kind in the U.S., was enacted Jan. 12 when the Democratic-controlled legislature overrode Republican Gov. Robert Ehrlich's veto. The law requires companies with more than 10,000 employees in Maryland to spend at least 8 percent of payroll on health care or contribute the difference to the state Medicaid fund.

State officials said Wal-Mart is the only company of that size that does not meet the 8 percent threshold.

The suit was announced in Arlington, Virginia, by the Retail Industry Leaders Association, which represents companies that operate more than 100,000 stores with more than $1.4 trillion (euro1.17 trillion) in annual sales.

The association, which also filed a lawsuit challenging a health care law passed in Suffolk County, New York, said the two laws illegally mandate specific health care expenditures and threaten to take away flexibility businesses need to deal with their employees.

The association also said the two laws are invalid because they violate the federal Employee Retirement Income Security Act.

"Over the past three decades, the Supreme Court of the United State has held repeatedly that ERISA, not state and local laws, regulates employer health plans," said Steve Cannon, outside general counsel to the association.

Chris Kofinis, communications director for union-backed Wake Up Wal-Mart, which lobbied for the bill in Maryland, predicted it will withstand a court challenge.

Lawmakers in Suffolk County, New York, approved a law last fall that would require large grocery retailers to give workers a health care benefit worth at least $3 (euro2.51) an hour. The law applies to companies with at least $1 billion (euro0.84 billion) in annual revenue and at least 25,000 square feet (2,250 square meters) of sales space for groceries. Companies are exempt from the rule if they have a collective bargaining agreement, which Wal-Mart does not.

Copyright © 2006 The Associated Press. All rights reserved.

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Wal-Mart aims to corner neighborhood market

The mega retailer is opening smaller Neighborhood Markets, challenging grocers in the region

Mark Chediak
Orlando Sentinel
02/06/2006                        [back to top] 

Feb. 6--Every week, stay-at-home mom Migdalia Estrada has a choice when she ventures out to buy groceries for her family of five. She can go to her old east Orlando neighborhood standby -- the Publix on South Chickasaw Trail -- or step inside the Wal-Mart Neighborhood Market, the new grocery store on the block.

These days, Estrada, 44, said she finds herself making more trips to the nearby Wal-Mart.

"Some stuff is cheaper at Publix, but they sometimes have more specials here," she said on a recent shopping trip to the Neighborhood Market, where she had filled her cart with staples including orange juice, instant soup, rice and canned black beans.

2 more stores planned

Aiming directly at consumers like Estrada, discounter Wal-Mart Stores has tagged the fast-growing Orlando market as a ripe spot for its more consumer-friendly Neighborhood Markets.

Last month, the retail giant celebrated the grand opening of its fourth location in Central Florida on South Alafaya Trail and plans to open another two stores with one in east Orange County slated to launch in March.

Much smaller than a Wal-Mart Supercenter -- more than four Neighborhood Markets could fit into one of the gigantic grocery/discount stores -- the Markets sell traditional grocery fare such as fresh produce and meats. They also offer amenities including a staffed deli, drive-through pharmacy and liquor department with a separate entrance.

Taking on 7-Eleven

The 24-hour stores also feature a "grab-and-go" section with prepared sandwiches, and some locations sell gas, pitting the company against convenience stores like 7-Eleven. The smaller format of the stores makes them easier to place in dense urban cities where the company is now trying to gain a foothold -- Dallas/Fort Worth, Phoenix and Las Vegas.

"A Neighborhood Market is really geared to someone who will shop more often and buy less," said Wal-Mart spokesman Eric Brewer. "It's for people who want to go in and get out quickly, like singles or couples who don't have kids."

The other convenient thing about the grocery-market format for Wal-Mart is that the stores tend not to incite the same kind of community backlash as the company's massive Supercenters, which are scattered throughout Central Florida.

Grocers should be worried

For example, neighborhood protests have fended off proposed Wal-Mart Supercenters in east Orange County, Oviedo and New Smyrna Beach; however, planned Neighborhood Markets have met little resistance here.

"Frankly, among all of the concepts, only the Supercenters will have such a high level of concern" from neighbors, Brewer said.

Grocers, however, should be a bit worried. Wal-Mart, the nation's leading grocer, has been making inroads in the Orlando grocery market, trailing only Lakeland-based Publix Super Markets in market share, according to TradeDimensions International, a research firm.

With last month's sale of Albertsons to a private investment group and Winn-Dixie still in bankruptcy, Wal-Mart is poised to gain even more ground. Its $109 billion in U.S. food and drug sales in 2004 makes it the largest grocer in the country.

"Wal-Mart has a cost advantage," noted Mitchell Corwin, a supermarket analyst for Morningstar. "Through its distribution and lower labor costs, it operates at a lower cost base, so it can offer groceries at lower prices."

Budget shoppers

But the price difference is not always great. Last week, a dozen Grade A large eggs cost 88 cents at the Neighborhood Market on Chickasaw and 89 cents -- on sale -- at the nearby Publix. A gallon of low-fat store-brand milk cost $3.14 at the Market and $3.49 at Publix.

It's the low prices that draw budget shopper Estrada, who makes frequent trips to her Neighborhood Market for her three children and husband, a carpet salesman.

"My kids, they're teenagers and they eat a lot," Estrada said as she scanned the canned-foods aisle for sales.

For grocers to compete with Wal-Mart, they'll have to offer services that you can't find at a Wal-Mart Neighborhood Market store, such as an on-site butcher, Corwin said.

That's exactly the tactic Publix is taking. "We offer superior customer service, treating our customers and associates like kings and queens," said Publix spokesman Dwaine Stevens.

'The competition is there'

Publix, for example, makes sure to staff its stores with plenty of employees who can help direct customers and assist with grocery bagging and other needs.

"We realize the competition is there," Stevens said, "but we firmly believe we offer a product that is more appealing." As evidence, Stevens pointed to the grocery store's growth in the Central Florida market with the company now operating 120 stores.

Enice Orozco of Orlando, who shops at the Publix and Wal-Mart Neighborhood Market on South Chickasaw Trail, said she goes to both stores for different reasons.

On a recent shopping trip, Orozco stopped at Publix for shrimp but said her husband likes the Neighborhood Market across the street for some items. "He's in the restaurant industry and prefers the meat over there," she said.

Copyright (c) 2006, The Orlando Sentinel, Fla.

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Wal-Mart agrees to become tenant at Livonia redevelopment

By Brent Snavely
Crain Communications, Inc.
February 06, 2006                             [back to top] 

Schostak Bros. & Co. and Wal-Mart Stores Inc. said Monday that Wal-Mart has agreed to become an anchor tenant of an $80 million to $100 million redevelopment of Wonderland Mall in Livonia.

After a long and contentious battle, the Livonia City Council approved Southfield-based Schostak’s plans to raze the aging mall and replace it with a 500,000-square-foot shopping center called Wonderland Village.

However, to appease residents opposed to the project, the council restricted Wal-Mart’s ability to operate to 18 hours a day instead of the requested 24 hours.

Until Monday, Wal-Mart and Schostak had declined to comment on whether the hour restrictions would cause Wal-Mart to back out of the development.

“Wal-Mart is pleased to announce that we will build a supercenter in Livonia at the former Wonderland Mall location,” Roderick Scott, Wal-Mart’s senior manager of public affairs, said in a statement Monday.

The new shopping center also is expected to have a Target store, a third yet-to-be named anchor store and about 40 additional shops and restaurants.

“When completed, Wonderland Village will be approximately half the square footage of the former Wonderland Mall and will create a synergy of retail experiences, a mix of uses, brought together with landscaping, water features, clock tower and harmonious facades — not just the traditional strip of stores,” Schostak said in a statement.

While Schostak will manage Wonderland Village, Wal-Mart plans to purchase the land for its 204,000-square-foot supercenter, said Linda Busse, Schostak’s director of corporate communications and marketing.

The deal has not closed.

Entire contents © 2005 Crain Communications, Inc.

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Wal-Mart threatens to halt DC plans

DCVelocity                     [back to top] 

Stung by the Maryland legislature's passage of the so-called "Wal-Mart bill," the mega-retailer is now threatening to suspend plans to build a giant distribution center in that state. The retailer had planned to construct a new DC in Somerset County on Maryland's Eastern Shore—a move that would create as many as 800 jobs in that region.

The threat comes in reaction to passage of Maryland's Fair Share Health Care Fund Act, a controversial health care measure that would require the retailer and other large companies to spend 8 percent of their payrolls in the state on health care or face a hefty tax. The act was nicknamed the "Wal-Mart bill" because the retailer, which reportedly employs nearly 17,000 people in Maryland, is the only big employer in the state that falls short of that threshold.

The bill traveled a bumpy road to passage. First adopted by the state legislature in April 2005, it was vetoed by Maryland Governor Robert L. Ehrlich Jr. in May. But on Jan. 12, state legislators overrode his veto. Many Maryland politicians argue that taxpayers indirectly subsidize Wal-Mart's health care costs through government programs and hospital fees.

Wal-Mart was quick to protest the override. "This legislation does nothing to accomplish that goal [of assuring everyone access to affordable health insurance]," says Wal-Mart spokeswoman Sarah Clark. "This vote was never about health care. This was about partisan politics ...."

What undoubtedly has Wal-Mart worried is the prospect that Maryland's action could boost similar efforts in other states. More than 30 states are considering comparable health care measures.

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Utahns foot insurance bill

By Kirsten Stewart
The Salt Lake Tribune
February 5, 2006                     [back to top] 

Looking to hold down spending on health care, employers have made unpopular choices, scaling back workers' health coverage or eliminating it altogether. But there's another way: get Medicaid to pick up the tab.

An analysis by The Salt Lake Tribune of Utah Department of Health data shows taxpayers footed the health insurance bill for 7,220 working Wasatch Front Utahns and their children in 2004. That's an estimated $42 million subsidy for low-wage employers such as Wal-Mart, Convergys Corp. and McDonalds. Also benefitting: public schools, universities and the LDS Church.

There are 250,000 Medicaid consumers in Utah. The Tribune's findings reflect those who work - and most don't - and live in Weber, Davis, Salt Lake and Utah counties.

The subsidies have broad implications for the country's health insurance crisis. This year, Utah will spend more than $1.5 billion on Medicaid, with Uncle Sam paying more than $1 billion of that total.

Last month, Maryland became the first state to mandate that large employers, those with 10,000 workers or more, spend at least 8 percent of their payroll on health care or contribute to a state fund. Other states have ordered the public disclosure of large employers whose workers receive government-paid healthcare.

Who is on Utah's List? Topping Utah's roster is Wal-Mart, which has 234 workers getting Medicaid or related assistance through the Primary Care Network and Children's Health Insurance Program.

Convergys Corp., with 8,000 workers at Utah call centers, had the second-highest total, at 181 employees. Other large Utah employers benefitting from state-funded insurance include Intermountain Health Care (IHC), the University of Utah and The Church of Jesus Christ of Latter-day Saints.

Household names like McDonalds, Burger King and the Delta Center, home of the Utah Jazz, also are on the list. Businesses with high totals were concentrated mostly in retailers, fast-food chains, call centers and temporary employment agencies. "I'm tired of seeing businesses getting state, county and municipal tax breaks and then telling their workers, 'You can go here and get Medicaid, food stamps and free child care,'" remarked Sen. Ed Mayne on the findings. "They're not meeting their corporate and civic responsibilities. And they're taking advantage of the taxpayers and businesses that are doing their fair share." A minimum solution? Mayne, a West Valley City Democrat, is sponsoring legislation he says would make private insurance more affordable - hiking the state's minimum wage from the current federal $5.15 to $7 an hour.

Wages at many large businesses, including Wal-Mart, already start above minimum wage. But Mayne said the change would be a "first step" toward a living wage, which might help the uninsured afford private coverage. As the pool of insured grows, costs for everyone drop, he said.

Republican lawmakers and Gov. Jon Huntsman Jr. have agreed not to debate a minimum wage measure this election year. Huntsman instead appointed long-time advocate for the homeless Pamela Atkinson to investigate.

Utah's enrollment in Medicaid, a health safety net for the disabled, low-income children and their parents, pregnant mothers and seniors, is flattening out as the economy improves. But from 2001 to 2005, it grew 52 percent, faster than any other state program. The average annual cost per Utahn on Medicaid: $5,838.

Atkinson plans a comprehensive analysis of workers on Medicaid, food stamps and other aid. Among the issues: Is the expansion of Medicaid to cover the working poor an outcome of welfare reform, which had moved them off cash assistance and into low-paying jobs? Or are employers exploiting workers to reap bigger profits? The Wal-Mart controversy. Wal-Mart has no shortage of critics unhappy with the big-box retailer's methods for reining in benefit costs, such as hiring more part-time workers and, as disclosed in an internal memo published by The New York Times last fall, discouraging unhealthy people from working at its stores. Company spokesman Dan Fogleman did not dispute the authenticity of the memo but said Wal-Mart is unfairly targeted. Wal-Mart has the most workers on Medicaid in Utah and in other states because of its sheer size, he said. "It's a numbers game. This isn't about just one company. This is about a health care crisis in America. We're doing what we can to try and make coverage affordable," said Fogleman.

Combatting negative publicity because less than 45 percent of its 1.33 million U.S. workforce receive company insurance, Wal-Mart announced a new plan this fall: allowing some employees to buy insurance for $11 a month.

Fogleman said in Utah, full-and part-time employees have access to plans that charge $23 a month. Family coverage starts at $65. Wal-Mart's ranks of company-insured now stand at 47 percent, Fogleman said.

Wal-Mart Watch, a nonprofit group allied with labor unions in Washington D.C., is unimpressed. "It's unacceptable that a company with $10.3 billion in profits has a health plan that covers less than half of its employees," said the group's president, Nu Wexler.

Utah's large employers split: Two of Utah's Top 10 employers, Hill Air Force Base and Skywest Airlines, have zero Wasatch Front workers on state-funded insurance, according to Health Department records.

The state's largest, IHC, has 26,000 employees - nearly double Wal-Mart's Utah workforce - but only 48 workers on Medicaid.

Also, 85 percent of the hospital chain's workforce are "benefits eligible," with 81 percent of those taking advantage of company plans, said Jeff Lowder, assistant vice president for human resources. "We're in the healthcare business, but we still have to pay for it," said Lowder. IHC is unique in that what it doesn't pay now it will pay later in the form of charity care for the uninsured. Also, only a third of its staff are part-time, whereas Wal-Mart and call centers Convergys and Teleperformance USA hire many part-time senior citizens, college students and second wage-earners.

Few of Convergys's part-timers opt for company insurance, though it is offered to all employees. Bare bones coverage is available for as low as $9.16 a month. "We're doing every bit as much as we can, and then some, other than to say it's free; and that's not going to happen," said Convergys benefits director Lynn Peterson. Schools' health problems . The AFL-CIO plans to push legislation similar to Maryland's new mandate in more than 30 states. No large private employers contacted by The Tribune would disclose what percentage of their payroll is spent on health benefits.

But University of Utah officials say the public research university spends 7 percent, and Alpine School District spends 21 percent. In a Catch-22 cycle, schools also contribute to Medicaid spending. Alpine (with 59), Granite (24), Jordan (25) and Nebo (25) school districts have workers drawing on Medicaid. So do the U. (38), Weber State University (14), Utah Valley State College (16), and other public entities, including state government (29) and Internal Revenue Service center in Ogden (30). "That tells you what people are earning," said Utah Board of Education attorney Carol Lear.

Asked whether government should take the lead in insuring its workforce, Lear said, "Yes. But this is Utah and we're talking schools. They pay what they can afford." Schools and colleges offer rich health plans with low or no premiums, which they leverage against low wages to retain teachers. But the schools can't afford to also cover their bus drivers, custodial staff and lunchroom workers. Alpine, for example, only offers paid insurance to full-time staff, about 3,561 of its 6,054 employees.

Alpine School District Accountant Jim Hansen said, "This year we spent $35.5 million on healthcare benefits." Part-timers can buy insurance through the district. But last year, only 15 did, probably because the Cadillac plan costs $345 a month for one person or $1,094 for a family.

Also on the list: BYU, small businesses: LDS Church-owned Brigham Young University has 51 workers on Medicaid, mostly between the ages of 19 and 26. BYU officials say they place upwards of 10,000 students in campus jobs each year. Its chain of thrift stores, Deseret Industries, employs large numbers of disabled Utahns and has 74 workers on Medicaid.

The vast majority of Utah workers on Medicaid - 4,563 - have jobs at small businesses, which struggle to afford coverage. Huntsman's advisers had explored allowing small businesses to buy insurance from Utah's Public Employee Health Plan, but the idea was recently shelved under intense lobbying by the insurance industry.

Utah healthcare reformist and advocate for the poor Judi Hilman backed the proposal. She said, "We're at a crossroads. Are we going to build on an employer-based system or go toward a single-payer route? If we build on the employer-based system, as unsustainable as that is, then we have to level the playing field."

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Darwinism, Wal-Mart-style

PETER PRUYN
February 5, 2006                  [back to top] 

READER TED Sares is wise to be wary of government intervention to address concerns regarding Wal-Mart's business practices (''Wal-Mart is penalized for being successful," letter, Jan. 29). However, he is unwise to dismiss the legitimacy of government controls in capitalism out of hand. Without a minimum wage, the Federal Reserve adjusting interest rates, and hundreds of other controls, a fair marketplace would not exist.

Like an organism in nature, the success of any organization, or society, is proportional to its ability to adapt or learn. Wal-Mart has successfully learned how to leverage a global economy faster than society's ability to create conditions for a fair marketplace, including fair labor practices.

Wal-Mart is capitalism with cancer. What's the best treatment?

PETER PRUYN Cambridge

© Copyright 2005 The New York Times Company

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Banking Wal-Mart, Texas bank roll into area

Josh Drobnyk
Washington Business Journal
February 3, 2006                              [back to top] 

Wal-Mart's biggest banking partner plans to open its first in-store branch in Greater Washington this summer.

Houston-based Woodforest National Bank, now in more than 100 Wal-Mart stores in Texas and North Carolina, filed an application with the Virginia State Corporate Commission Jan. 25 to set up a branch in a Manassas Wal-Mart.

The Manassas branch is scheduled to open by this summer, according to Wal-Mart spokesman Marty Heires.

About 1,100 stores, 35 percent of Wal-Mart's total, have bank branches now, and there are agreements for another 300, Heires says.

Woodforest, with $1.8 billion in assets, plans to open 22 in-store branches in Virginia this year, nearly all in the southern and central parts of the state, says Cindi Stewart, Woodforest's vice president of marketing.

The Houston bank is entering a market familiar with grocery-store branches. Chevy Chase Bank, for example, has had a long-standing relationship with Giant Food.

"Banks have been playing around with in-store branching for over 30 years," says bank consultant Bert Ely of Alexandria-based Ely & Co.

No one was playing around when Wal-Mart filed an application to form its own bank last year. The proposal, separate from the Woodforest venture, sparked heated debate.

In July, the world's largest retailer applied with Utah banking regulators and the Federal Deposit Insurance Corp. to start an industrial bank to help cut down on fees for credit and debit card transactions.

"It is really something that the customer won't see," Heires says.

Bankers nationwide, however, noticed the application and sent in fervent letters of opposition. "Wal-Mart will establish banking offices in its stores and cause competitive problems for local banks the same way it has for local retailers," wrote Walter Ayers, the Virginia Bankers Association president, in a letter to the FDIC signed by the heads of 25 other state bankers associations.

The FDIC won't act on the application until it fills a vacancy on its five-member board and holds a hearing.

© 2006 American City Business Journals Inc.

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Wal-Mart pulls out of Hercules project

East Bay Business Times
February 3, 2006                        [back to top] 

After a report from the city staff of Hercules recommended that city officials disapprove a proposed Wal-Mart store, the world's largest retailer announced Thursday it has temporarily ended plans to build in the Contra Costa County city.

Arkansas-based Wal-Mart Stores Inc. (NYSE: WMT) said it had withdrawn an application that was to be heard by the Hercules Planning Commission to build a 142,000-square-foot store in the Bayside Marketplace development so it can "reevaluate its options in light of the (staff report)."

That staff report said the proposed Wal-Mart was not "in substantial compliance" with initial development plans negotiated by city and Wal-Mart officials, so recommended a rejection by Planning Commission members.

"Wal-Mart is obviously disappointed by staff's recommendation, and while we might not agree with their conclusions it seems prudent to withdraw the application in order to reevaluate our options," said Kevin Loscotoff, regional manager of public affairs for Wal-Mart, in a statement.

Wal-Mart still owns the site where the proposed store was to be built, located at Alfred Nobel Drive and John Muir Parkway, so is likely to come up with another proposal.

"...We are 100 percent committed to this site and want to take whatever time necessary to assess the city's comments," Loscotoff said in his statement.

Though, as in many other communities, the proposed Wal-Mart generated opposition from some residents, the company contends Hercules residents are anxious to have greater retail options in their city.

Bayside Marketplace is part of the larger Bayside Project that encompasses a 105-acre site on the Hercules waterfront. A combination of retail, residential and commercial development, along with some open space preservation, is proposed for the land.

© 2006 American City Business Journals Inc.

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Wal-Mart should pay fair share of health benefit costs

By Mike Murphy
The Olympian
February 3, 2006                        [back to top] 

I was pleased to see The Olympian comment on an important issue before the Legislature — what to do about large employers shifting health care costs to the rest of us. The most obvious example is Wal-Mart, one of our nation's largest and most profitable employers. Wal-Mart is big and wealthy, but it does not provide decent health care benefits for its employees.

Should we be concerned about how Wal-Mart treats its employees? Wal-Mart and its allies say this topic should be no concern to the public or the Legislature.

I see it differently.

Wal-Mart follows a business model of providing minimal health care, which it knows will shift costs to taxpayers and other employers. A recent news article said more than 3,100 of Wal-Mart's employees in Washington are on taxpayer-funded health care plans.

This practice by Wal-Mart and some other large employers has a direct impact on the entire state. The cost to taxpayers is estimated at tens of millions of dollars a year.

This is unfair to our state treasury, to communities across Washington, to business and to families. Our Legislature must step in. That's why I decided to support the “Fair Share” bill.

The bill sets a minimum for the state's largest employers and targets the worst corporate abusers. For companies with 5,000 or more employees, the bill requires them to spend at least 9 percent of payroll on health care or pay the difference into the state's health care fund. That's a reasonable minimum. The vast majority of companies that size already meet the standard.

The bill is supported by businesses, working families, elected officials, health care professionals, and community and civic leaders. This bill can help address the growing number of uninsured children and adults in Washington, now estimated at more than 600,000 people.

Health care is a national crisis, and we do need comprehensive change. But as we work to bring change nationwide, we can't ignore growing abuses of the present system by Wal-Mart and other large employers. We must stop the “race to the bottom” by unfair employers.

This legislation will have two important benefits. First, employees at Wal-Mart and other companies would get improved health care for themselves and their children. Second, and perhaps more important, taxpayers would no longer provide an unintended subsidy to corporations whose employees are on the taxpayer-funded Washington Basic Health Plan.

Wal-Mart and its allies have tried to characterize this bill as anti-business. This is the same argument that failed in Maryland, where similar legislation was passed into law.

Many small and larger businesses support the “Fair Share” bill because it levels the playing field. Fair-minded employers shouldn't be paying higher premiums to offset the irresponsible few. Fair-minded employers should not be penalized for doing the right thing.

Wal-Mart has a well-documented history of questionable treatment of its employees. It's time to pass this legislation and help put a stop to abuses of our health care system.

Mike Murphy is treasurer of the state of Washington.

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Wal-Mart urged to stock day-after pill

By Marcus Kabel
San Diego Union-Tribune (CA)
February 3, 2006                        [back to top]   

A coalition of women's groups and family planning organizations on Friday urged Wal-Mart Stores Inc. to change its policy and start stocking emergency contraceptive pills in its pharmacies. The groups, claiming a total membership of 10 million women, called on Wal-Mart Chief Executive Lee Scott to stop blocking access to a legal medication. Their joint statement came in the same week that three Boston women filed a suit against Wal-Mart, contending that the retail giant violated Massachusetts state law by failing to stock emergency contraceptives, also known as “morning-after” pills, in its pharmacies.

“Wal-Mart's actions are clearly an outrageous intrusion into the health and privacy of all U.S. women. When a doctor prescribes emergency contraception for a woman, Wal-Mart does not have the right to overrule that decision,” the joint statement said.

Signatories were the National Organization for Women, NARAL Pro-Choice America, Planned Parenthood and the National Council of Women's Organizations, together with a union-funded anti-Wal-Mart campaign group, WakeUpWalmart.com.

Wal-Mart has said it does not stock the drug for business reasons because it is not commonly prescribed. But Wal-Mart indicated for the first time Friday it may be rethinking that policy.

Company spokeswoman Mona Williams said the Bentonville, Ark.-based company had not stocked the pills in the past, except where required by law, because there seemed to be less customer demand than for other medication.

“However, women's health is a high priority for Wal-Mart, so clearly there are broader considerations and we are giving this a lot of thought,” Williams told The Associated Press.

Williams declined to elaborate when asked if that meant Wal-Mart was considering stocking the medication nationally.

Wal-Mart has said that when it doesn't stock a particular drug, its pharmacies refer customers to other stores.

But the joint statement by the women's groups said that was a hollow gesture in communities where Wal-Mart may be the only pharmacy for miles around.

“To be most effective, emergency contraception should be taken within 72 hours of unprotected intercourse or contraceptive failure,” the groups said. “No woman at risk for unintended pregnancy, be it the result of a broken condom or sexual assault, should be turned away by Wal-Mart and forced to find another pharmacy while the clock is ticking.”

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'The Wal-Mart Effect' from Charles Fishman

The Motley Fool
NPR
February 3, 2006                  [back to top] 

Wal-Mart is a business with 1.6 million employees in the United States alone. It does more business than Target, Sears, Kmart, J.C. Penney, Safeway, and Kroger combined. And more than half of all Americans live within 5 miles of a Wal-Mart store. David Gardner talks about the big, big business of Wal-Mart with Charles Fishman, author of The Wal-Mart Effect: How the World's Most Powerful Company Really Works - and How It's Transforming the American Economy.

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Wal-Mart succumbs to opposition

By Tom Lochner
Contra Costa Times
February 3, 2006                    [back to top] 

Wal-Mart on Thursday withdrew an application to build a store in Hercules, but left open the possibility it could come back with an amended plan. An opponents' group, meanwhile, vowed to continue to fight to keep the world's largest retailer out of Hercules.

In a news release, Wal-Mart said it would "re-evaluate our options" in light of a city staff report finding that its proposed project is "not in substantial compliance" with an initial development plan and a 2003 development agreement.

City Manager Mike Sakamoto cautioned against reading too much into Thursday's Wal-Mart action.

"It's a real vanilla kind of withdrawal," he said, "It doesn't go into any depth at all. It would be inappropriate to draw any conclusion at this time about the permanency or non-permanency of the withdrawal."

The staff report recommended the Planning Commission deny approval. Wal-Mart's proposal has been dropped from the agenda of Monday's Planning Commission meeting.

In December, Wal-Mart applied to build a 142,000-square-foot store as the anchor tenant of Bayside Marketplace, a 17-acre tract off John Muir Parkway. That application echoed one filed last March on Wal-Mart's behalf by the Lewis Group of Sacramento, the former owner of the property. Lewis withdrew its application in September and sold the tract to Wal-Mart in November.

A 2003 development agreement between the city and Lewis calls for a retail center with a 64,000-square-foot store and other stores.

The staff report, by Community Development Director Steve Lawton, Planning Manager Dennis Tagashira and consulting planner Charlie Knox, finds Wal-Mart's project "materially different" from the plan described in the 2003 development agreement between Lewis and the city.

Moreover, the report says, the initial development plan envisioned a "neighborhood-serving shopping center that includes a grocery store and drug store in discrete retail units distributed across the site."

The report predicts Wal-Mart's plan would "adversely influence the types of tenants" that would locate nearby.

Wal-Mart has said its stores help nearby businesses thrive. In its news release, it claimed broad local support.

But ever since Lewis' original proposal, the idea of a Wal-Mart in Hercules has drawn passionate and broad opposition. Some say a big-box store would not fit with the New Urbanism, pedestrian-oriented concept of the nearby waterfront and fear it would draw many out-of-town trucks and cars.

Others say the retailer is anti-union, underpays employees and provides inadequate benefits, thus overburdening social and medical services.

Wal-Mart has rejected those notions, countering that it pays good salaries and benefits and provides good jobs with advancement opportunities.

"We don't want a Wal-Mart because of its bad reputation in the city and the state and the country and the world," said Steve Kirby of the group Friends of Hercules. "We'll take it all the way to a referendum, if they ever get something through the planning commission."

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Hillary Clinton Returns Wal-Mart Cash

By DEVLIN BARRETT
Associated Press Writer
February 3, 2006                          [back to top] 

WASHINGTON -- Sen. Hillary Rodham Clinton gathered checks from Hollywood friends, John Kerry's wife and even a former Republican congressman, but records filed Friday show she returned cash from an even older ally -- Wal-Mart.

Senate records made public Friday detail how Clinton, D-N.Y., raised a whopping $6 million in the last three months of 2005, bringing her campaign cash to $17 million going into her re-election run, in which she has yet to face organized opposition.

Some $1,500 of that money came from Amo Houghton Jr., the former Republican congressman who retired in 2004. Houghton, an heir to the Corning glass company in upstate New York, did not immediately return a call for comment.

The junior senator from New York is also a potential presidential candidate in 2008. She took in plenty of donations from box office stars and political heavyweights, according to paperwork filed with the Federal Election Commission.

Teresa Heinz Kerry, the wife of Sen. John Kerry, D-Mass., gave Clinton $2,100. John Kerry, who lost the 2004 presidential race, is also considered a presidential prospect in 2008.

Clinton returned $5,000 to the political action committee of Wal-Mart Stores Inc., a company with long ties to the Clintons dating back to their days in Arkansas, where Wal-Mart is headquartered.

Clinton campaign spokeswoman Ann Lewis said the money was returned "because of serious differences with current company practices."

The senator served on the Wal-Mart board from 1986 to 1992, and was close with the Walton family that created the nation's largest retailer.

But the senator signaled a new stance on the company's business practices in a speech last week, when she told the U.S. Conference of Mayors that the company should provide better worker benefits.

"Cities and states are saying we can't keep holding the bag here," Clinton told the conference, citing a new Maryland law requiring Wal-Mart to spend 8 percent of payroll in health benefits or contribute to insurance plans.

Other donors to Clinton include former Sept. 11 commission member Richard Ben-Veniste, who gave her $1,000 in November. Actress Reese Witherspoon contributed $1,000, and talk show host Jerry Springer donated $4,200.

Actor Danny DeVito gave $1,000, and actress Morgan Fairchild gave $1,500. Edie Falco of "The Sopranos" gave $1,000, and Jessica Seinfeld -- comedian Jerry Seinfeld's wife -- gave $4,200.

The papers also showed what it costs a candidate to raise $6 million in three months. One company alone was paid more than $461,000 to conduct direct mail appeals for Clinton.

Copyright 2006 Newsday Inc.

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Migden bill raises health care ante for biggest state firms Requires 8% payout for worker benefits, or Medi-Cal funding

Greg Lucas,
SFO Chronicle
Thursday, February 2, 2006                  [back to top] 

Sacramento -- California's largest employers would be required to prop up the state's medical insurance program for the poor if they don't offer their workers generous enough health benefits under a bill set for introduction in the Senate.

Modeled after a law passed earlier this month in Maryland that only affected mega-retailer Wal-Mart, the California legislation would require employers of more than 10,000 to spend at least 8 percent of total wages on health benefits.

If they don't, the company would contribute the difference between what it does pay and the 8 percent threshold to Medi-Cal, the state's health care provider of last resort.

"Government and entitlement programs are a safety net. They are not supposed to be a place employees from a major corporation are compelled to get their health care because their employer shirks that responsibility," said Sen. Carole Migden, D-San Francisco, who is introducing the bill.

"Why should the taxes paid by the domestic worker or the car mechanic or the school nurse be used to cover costs that should rightly be borne by another worker's employer?"

Wal-Mart characterizes the bill as just the latest assault by unions who have orchestrated legislative attacks in dozens of states against the giant retailer, whose nonunion workforce totals 1.3 million nationwide with more than 70,000 employees in California.

"Union leaders have been unsuccessful in forcing our associates (employees) to unionize, so they've devised a multimillion-dollar campaign to slow down Wal-Mart's growth,'' said Kelly Hobbs, a spokeswoman for the retailer in Washington, D.C.

"These bills are nothing more than a political ploy," said Hobbs, noting that three-fourths of Wal-Mart's employees have health coverage. Roughly 45 percent of the retailer's employees are insured by the company, while another 30 percent are insured either through a spouse's plan or Medicare.

Counting Migden's bill -- expected to be in print within the next few days -- 22 state legislatures have introduced bills to impose some kind of health care mandate on employers.

The number of businesses affected varies from state to state. Florida, Kentucky and Michigan have 10,000-employee thresholds, as Maryland's law does, but a bill in Massachusetts affects businesses with more than 10 employees. New Hampshire's mandate begins at 1,500 employees; Oklahoma's at 3,000.

The rash of bills has attracted the opposition of the National Restaurant Association and the National Retail Federation, which are helping bankroll a coalition to oppose the measures.

Restaurateurs were instrumental in repealing a California law signed in 2003 mandating larger employers provide health care for their workers.

"These bills are a major threat to business in general and the restaurant industry in particular," said Tom Foulkes, vice president of state relations for the National Restaurant Association in Washington, D.C.

"They do nothing to help the case of the uninsured or fix the health care system in America, which is really the root of the problem. All these bills do is find someone else to pay for it," Foulkes said.

The Maryland law was vetoed last year by the state's Republican governor. The heavily Democratic-majority Legislature overrode his veto in January.

Only three employers in that state have more than 10,000 employees. Of the three, only Wal-Mart was not unionized.

"Wal-Mart was not the target of the bill," said Maryland state Sen. Gloria Lawlah, a Prince George's County Democrat who carried the legislation. "The real culprit is the high cost of health care."

Support for Migden's measure will come from groups like Health Access, an advocacy group that strongly supported the 2003 mandate on employers to provide health coverage.

"Larger employers should pay their fair share and not burden taxpayers and emergency rooms," said Beth Capell, a lobbyist for Sacramento-based Health Access. "People who get up every day and go to work ought to get health insurance on the job. It's as simple as that."

The number of California companies that would be affected by Migden's bill is small.

There are 22 companies with more than 20,000 employees in California, 15 with between 15,000 and 19,999 employees and 32 companies with between 10,000 and 14,999 employees, according to the state Department of Economic Development.

Among companies with more than 10,000 employees is Levi Strauss, which has 12,300 employees, according to Forbes magazine. Foster Farms employs 11,000. Pacific Gas and Electric Co. employs nearly 12,000.

Stanford University also has more than 10,000 employees.

Among the state's largest employers is Oakland-based Kaiser Permanente, which has 33,000 employees. Bechtel has 42,000 employees.

Migden said she doubts that any of those employers would be affected by the bill because they spend more than the 8 percent threshold in her bill on health benefits for employees.

©2006 San Francisco Chronicle

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NOW and Allies Support Lawsuit Calling for Emergency Contraception Access at Wal-Mart

February 2, 2006                 [back to top] 

At the same time Wal-Mart faces the largest gender discrimination class action lawsuit in U.S. history, affecting 1.6 million women, three Massachusetts women are now suing Wal-Mart over its failure to provide access to emergency contraceptive pills.

Wal-Mart's decision not to stock or sell emergency contraception -- also known as Plan B or the "morning-after pill" -- unnecessarily denies women everywhere their right to access a legally-approved drug. The lawsuit charges that Wal-Mart is violating a Massachusetts policy requiring pharmacies in the state to dispense all "commonly prescribed medicines."

Wal-Mart's CEO Lee Scott should not decide what medicines women may or may not take. Wal-Mart's actions are clearly an outrageous intrusion into the health and privacy of all U.S. women. When a doctor prescribes emergency contraception for a woman, Wal-Mart does not have the right to overrule that decision.

To be most effective, emergency contraception should be taken within 72 hours of unprotected intercourse or contraceptive failure. Because Wal-Mart has put so many smaller stores out of business, in a number of areas it is the only pharmacy for miles. No woman at risk for unintended pregnancy, be it the result of a broken condom or sexual assault, should be turned away by Wal-Mart and forced to find another pharmacy while the clock is ticking.

Wal-Mart's statement that they choose "not to carry many products for business reasons," rings hollow and