Wal-Mart goes on the offense

  • By Eric Fetters / Herald Writer
  • Thursday, January 13, 2005 9:00pm
  • Business

Wal-Mart launched a high-profile defense Thursday of its employment practices and the effects its stores have on communities, issues that have surfaced locally in the wake of the retailer’s expansion plans.

In Snohomish County, Wal-Mart has three stores, with two more planned for south Everett and Smokey Point. It also is considering sites in Stanwood and elsewhere.

The world’s largest retailer has a reputation for not paying most of its 1 million employees well and for using mostly part-time workers. Company officials refuted that.

“I think there is a lot of misinformation and untruths about our company. Today, we’re just getting the facts out and telling our story,” said Eric Berger, Wal-Mart’s community affairs manager for the Puget Sound region.

Lee Scott, chief executive of Wal-Mart Stores Inc., delivered a similar message during a round of media interviews, and the company also took out full-page ads Thursday in some of the nation’s largest newspapers.

The ad says the company’s average pay is “almost twice” the federal minimum wage of $5.15 an hour, that 74 percent of its hourly workers work full time and that Wal-Mart offers health and life insurance, company stock and a 401(k) retirement plan.

In the Puget Sound area, Berger noted, Wal-Mart’s average employee wage is $9.98, well above the state’s minimum wage of $7.35 an hour.

Wal-Mart’s campaign also boasts that 60 percent of its employees are women, and more than 40 percent of its store management jobs are held by women. The retailer has vigorously fought lawsuits accusing it of bias against women and not paying employees for all the hours they worked.

The company has also been criticized by the United Food and Commercial Workers union, which continues to try to organize Wal-Mart workers. Greg Denier, a national spokesman for the union, accused Wal-Mart of being deceptive in its new campaign.

“Obviously, it is a defensive reaction to growing community, consumer and worker concern about the impact of Wal-Mart,” Denier said.

He said the company’s health insurance is too expensive given what employees are paid, and does not provide adequate coverage for noncatastrophic illness.

Scott said Wal-Mart decided to become more aggressive in merchandising and the way it gets its message across after the company’s Thanksgiving weekend sales failed to meet expectations.

Wal-Mart’s CEO added, however, that he does not dismiss concerns expressed when Wal-Mart wants to open a new store.

“I think there’s lots of questions when Wal-Mart comes to a town that need to be answered. Not all of those questions are frivolous,” he said.

The Associated Press contributed to this story.

Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.

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