Who would have thought purchasing groceries at the local supermarket would expose something meaningful than the average person would realize. An unhappy male worker for the supermarket was groaning and mishandling his keys to unlock a door while carrying a large bucket of water. I thought nothing of it and continued browsing around the store trying to figure out what I was going to eat for dinner. However, as I continued through an aisle, the unhappy male worker reminded me of one summer job I worked after graduating high-school. After leaving the supermarket and continuing towards the exit doors, I also observed another group of workers performing their duties just outside of the supermarket. Three workers were smiling and it …show more content…
As described in the article by Phil Wahba, “Wal-Mart store workers are being asked to do a lot more than they used to.” This means that employees are not choosing the best actions resulting in the best overall consequences for everyone concerned. On the other hand, a good opposing argument against this principle is that the utility of employees at Wal-Mart is forfeited for the utility of customers and consumers shopping at Wal-Mart and business executives. Wal-Mart employees are earning minimum wage for their hard work for the benefit of customers, consumers, and Wal-Mart executives. The utility for customers, consumers, and especially Wal-Mart executives is then increased as profits rise in which business executives benefit from this. A surplus in profits results in greater overall prosperity for the company which can potentially result in an increased number of jobs if more locations are opened. Furthermore, employees can continue to work and keep their jobs as more positions would also be created from newly opened locations. However, creating more minimum wage jobs is not necessarily beneficial because there would be a larger portion of the population unable working at Wal-Mart, unable to support themselves. If customers and
Common views of professionals will agree that our economy is partly affected by the Wal-Mart effect. Neumark, Zhang, and Ciccarella (2005) will agree with Stone, Goetz, and Swaminathan by saying that “We estimate the effects of Wal-Mart stores on county-level employment and earnings, accounting for endogeneity of the location and timing of Wal-Mart openings that most likely biases the evidence against finding adverse effects of Wal-Mart stores” (Pg. 1). This is another common aspect of all these professionals with the idea that there is a negative effect behind the openings of Wal-Mart. All of the effects found are common as they reduce local businesses around new Wal-Marts. Neumark, Zhang, and Ciccarella (2005) quotes “ Yet two of the most commonly-heard criticisms are that Wal-Mart eliminates more jobs than it creates for a community and that Wal-Mart’s wage levels pull down standards for all workers—not simply creating low-wage jobs, but driving down wages” (Pg. 1). Not only is the Wal-Mart effect destroying the local businesses, Wal-Mart does not help create more jobs for the jobs it loses in the community. Also Wal-Mart does not pay its workers a good wage. That can greatly affect a community because
Not only Wal-Mart is saving money for consumers, Wal-Mart creates jobs, improve economic conditions and overall improve the areas in where they operate. Wal-Mart usually open in rural and down trotted areas. A perfect example is Carol Foote. She and her friend Paula Beaulieu started a petition to open a
According to Raj Patel (2010), Wal-Mart employs “2.1 million greeters, stock clerks, and logistics officers working at its 8,416 stores ... [and] ranks among the largest employers worldwide--only China's army has more people on its payroll.” (para. 1). That is 2.1 million people who chose to work for the company, who were employed despite whatever setbacks there were holding them back from a “real” job. While Wal-Mart is definitely not the dream job, it is better than no job, and in fact does not pay that much below the retail average of $11.86/hour (EAE Alberta, 2011, p. 4). In this economy, it is unrealistic to believe that any retail job will lead a new fancy car every year, or pay much further than the necessities. The high cost of living with a low minimum wage goes beyond Wal-Mart’s business structure. However, it is a job that is helpful in employing students who need to pay for their education, and in assisting in immigrants making money when they first move to North America. It employs those hard to employ people and gives them the experience needed to move on to a better job with higher pay. Also missed in Parmar’s article is the fact that when employing two million people, there is a much higher chance of the company having an issue with employees. Due to its immense amount of employees, it is 5,500% more likely that a bad event will happen at Wal-Mart as opposed to smaller companies such
As stated on the corporate website (2017), “Walmart is the largest retailer in the world, where 2.3 million associates meet the needs of more than 260 million customers every week.” These numbers are huge, and with so many locations around the globe, they have had allegations been made by employees regarding their dissatisfaction about poor work conditions, gender discrimination, low wages, poor benefits, and inadequate health care. Walmart has been criticized for its policies against labor unions and this issue has prompted public outrage, (Johansson, 2005) which is of great concern for the market. The company has also faced criticism for being anti-union, but it has claimed that it is rather pro-associate, whereby employees
During the last 20 years, Wal-Mart has moved into many areas wiping out all the stores around causing people to loose jobs, slashing the tax base and causing many more disturbing problems to neighborhoods so people should stop supporting Wal-Mart for many of these reasons. Always low prices, does this sound familiar? Well this would be the slogan of the world’s most controlling company; Wal-Mart. Wal-Mart grew over the years into a 256 billion dollar company after making its name across the world in 1915. The major problem with Wal-Mart is that it maintains its own mini-economy. Some people believe Wal-Mart supports the American economy while most others hold that Wal-Mart’s global outsourcing will and has
Wal-Mart excels in customer service; and the wages provided to their employees is beyond just minimum wage. “Wal-Mart’s success is the direct result of the dedication of its associates, and they reward their hard work with benefits that work for them. Their benefits include more than medical coverage and a competitive pay package: They offer associates retirement savings plans, pharmacy benefits, the opportunity to share in bonuses and valuable discounts at their stores (walmartstores.com, n.d).”
I remember when I got hired in January 2007, the person who trained me said that everyone that got hired at Walmart is a piece of Walmart . In another word, everyone is part of the Walmart family no matter the employee racial background. However , it seems to change nowadays specially in my job location.
Having a high turnover rate is the major effect of these challenges with Wal-Mart’s compensation and benefits program. If employees are dissatisfied with their pay they are more than likely going to find another job. People need to support themselves and their families and without proper pay it is not possible. Wal-Mart employees have been quitting left and right because they have found another company that will pay them a better and fairer wage for the same position. The high number of employees quitting due to low wages has caused Wal-Mart to have a high turnover rate. However, this is not Wal-Marts only reason for such a high turnover rate. The lack of health insurance benefits offered to employees is the main and perhaps the most important cause of high turnover rate for Wal-Mart. People need health insurance not only for themselves but for their families as well. Without health insurance Wal-Marts workers are not able to see doctors when they or their family gets sick or even for a regular checkup. Since their employees are not getting the health benefits needed they are leaving Wal-Mart to find another company that will give them the health benefits needed and for a lower out of pocket premium.
Wal-Mart’s strongest tool in fighting off unionization efforts is the weak penalties for employers that violate U.S. labor laws. Wal Mart has enormous monetary resources, which gives the company the ability to break various labor laws and only see minimal consequences from their standpoint. Ultimately, this gives Wal-Mart little incentive to obey U.S. labor laws, as the consequences for breaking the laws are minimal.
Please read Barbara Ehrenreich's recent book, Nickel and Dimed. In her brilliant book she reveals the misery of working for a big box retailer and the impossibility of living in America on poverty wages. She spent time working at Wal-Mart in St. Paul, Minnesota and struggled to survive. Read her account of the anti-union propaganda that Wal-Mart espouses. Wal-Mart is no friend to the working poor.
Walmart’s new hiring policy of only hiring temporary workers, has affected around 1.3 million workers. (Cite). According to a recent survey conducted by Reuters on fifty-two Walmart stores, the results show that twenty-seven stores were only hiring temporary workers, twenty stores were hiring full-time, part-time, and temporary workers, and five stores were not hiring at all (Reuters, 2013). According to the company, this policy is implemented in order to make sure that the company is “staffed appropriately”. (Reuters, 2013) However, one of the other reasons why the company is only hiring temporary workers and part-time workers is to mitigate their operational costs. (Reuters, 2013) In 2013, 10 percent of Walmart’s U.S. workforce consists
Most times changes in a organization's hiring policies generates positive results, saving the organization time and money, or creating a more pleasant work environment. Unfortunately, Walmart has not had positive results to their retroactive changes to their hiring policies. According to a Reuter survey, Walmart forcefully introduced their new hiring policy which new employees are hired on a 180 days temp contract. This policy has been implemented to ease the effects of the potential rise in health care costs due to Obama Care. Representatives of Walmart find these new changes to the hiring policy unfair due to the weak job market. My belief is change is in order. Walmart has set a poor example for many companies and has created what I feel
Although, if people keep agreeing to work for minimum wage then these higher wages will never be set because the economic marketplace knows that it can increase its profit margin by paying workers less which is what it will always try to do. Looking at the article, it can be seen that if Wal-Mart were to raise there minimum wage to the acceptable amount of twelve dollars ($12.00) an hour, the corporation would take a $3.21 billion dollar hit to their checkbooks. Even if immigrants were the ones who were always sweeping the market to its lowest paying profit margin they are still providing a benefit to corporations which is therefore providing a benefit to everyone who interacts with that corporation and should it be a corporation like that of Wal-Mart a plethora of people are receiving the benefits while much fewer are being harmed.
This theory comes from the question what makes people satisfied and what do they value. Wal-Mart’s employees express their dissatisfied with their pay and benefits package. Most employees can’t afford or aren’t eligible to receive their healthcare package. Wal-Mart continues to feel the effects and consequences by having a high turnover rate with employees. Most of Wal-Mart’s turnovers are voluntary, leaving the cost to be substantial to Wal-Mart. Wal-Mart’s turnover rate is absolutely appalling. Approximately 70% of Wal-Mart employees quit outright within the first 12 months. This could be that Wal-Mart is openly against any kind of labor union within their organization and will stop at nothing to keep collective bargaining away. (Keil, 2005)
Wal-mart is the number one retail store in the U.S. and was founded by Sam Walton in 1962. Wal-mart has expanded to include the U.S., Mexico, Puerto Rico, Canada, Argentina, Brazil, China, and various other places. In 1988, Wal-mart developed the Supercenter concept to meet the growing demand for one stop family shopping. Supercenters combine grocery and general merchandise all under one roof. Their purpose is saving people money to help them live better (Wal-Mart, n.d). Even their success Wal-mart has still had many lawsuits for violating labor laws and