April, 2005

UFCW Calls on Wal-Mart to Publicly Release Documents on Alleged Illegal Slush Fund

Washington DC—Today’s Wall Street Journal revealed that former Wal-Mart Board member and Vice Chairman Thomas M. Coughlin, the #2 person at the company, alleges that he operated an illegal anti-union slush fund as part of a company program to suppress the democratic freedom of workers to make a choice for a union voice at work.

The UFCW calls on the company to publicize all documents connected with the U.S. attorney’s criminal probe of the Coughlin case.

Wal-Mart has already been found guilty of illegally spying, bribing with promotions, firing and intimidating workers. According to the Wall Street Journal, these revelations, if true, mean that Wal-Mart’s anti-worker, anti-union program “would represent a criminal offense under the federal Taft-Hartly Act,”—a federal felony to pay employees to persuade coworkers to abandon support for union representation.

The Journal also reported that Coughlin “is expected to use the ‘union project’ as part of his defense to the charges about mismanagement of funds.”

“We are deeply disturbed by these allegations of Wal-Mart’s anti-union activity,” stated UFCW Executive Vice President and Director of Organizing Bill McDonough.   These are serious criminal offenses and cast Wal-Mart’s systematic anti-worker activities on a much more sinister level.  Wal-Mart should not try and cover up its activities but should do the right thing and make all of the documents public immediately.”

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Wal-Mart Admits Their Health Care Program Falls Short

WakeUpWalmart.com, America’s campaign to change Wal-Mart, challenged Lee Scott, CEO of Wal-Mart, Inc. to explain his statement yesterday regarding Wal-Mart’s health care coverage.  During “”Wal-Mart Media Days,”" a two-day public relations effort to improve Wal-Mart’s image, Lee Scott answered questions from reporters.

According to the St. Louis Post Dispatch, Scott, in response to a reporter’s question about why Wal-Mart has the most number of employees on state Medicaid rolls, apparently said, “”There are government assistance programs out there that are so lucrative it’s hard to be competitive, and it’s expensive to be competitive,”" Scott said.

Georgia state legislator Nan Orrock was shocked.  “”It should be an embarrassment to Wal-Mart that our tax-payer funded Medicaid programs compete with their dismal health care,”" stated Orrock.  “”Our programs are intended for our state’s poor and underserved as a safety net, not as a better alternative to the largest corporation with more than $10 billion in profit.”"

Instead of living up to its responsibility as America’s largest corporation, Wal-Mart continues to ask taxpayers to pay their health care costs.  Several states are considering addressing this health care cost shift.  In Maryland, for example, the State Senate passed a bill yesterday requiring corporations to spend at least 8 percent of their payroll on health care benefits for its employees or put the difference into Maryland’s Medicaid fund.  According to the Baltimore Sun, Maryland has several employers with over 10,000 employees, but Wal-Mart is the only company that fails to meet the 8 percent threshold.

“”This is outrageous! With over $10 billion in profits, Wal-Mart has a moral responsibility to provide decent healthcare for their 1.4 million employees,”" stated Paul Blank, Wake-Up Wal-Mart’s campaign director.  “”It is a sad day when the largest company in America admits that taxpayer sponsored healthcare programs, like Medicaid, provide better health care than our nation’s largest employer.”"

It should also be noted, in the 11 out of 12 states where we have data, Wal-Mart is the company with the highest number of employees on Medicaid.  In addition, more than 500,000 of Wal-Mart’s employees do not receive coverage under Wal-Mart’s health care plan.

“”It’s quite simple. Wal-mart needs to wake-up and do what is right for America! Wal-Mart has a responsibility to provide affordable, comprehensive health care to its employees not shift the cost onto the American taxpayers.  America’s largest company should reflect America’s values,”" added Blank.

The Wake-Up Wal-Mart campaign was launched on April 5, 2005 by the UFCW and more information is available at www.wakeupwalmart.com.

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UFCW Launches New Campaign to “”Wake Up Wal-Mart”"

The UFCW announced today it is launching a new grassroots, community-based campaign to wake up Wal-Mart.  The campaign’s website “”www.WakeupWalMart.com“” and the campaign’s blog “”http://blog.WakeUpWalmart.com“” will be at the center of this new grassroots movement that will lead and revolutionize the national fight to change Wal-Mart.

“”This is a new day and a new strategy in the fight against Wal-Mart,”" stated Paul Blank, the new campaign director for the Wake-Up Wal-Mart campaign.  “”Wal-Mart’s greed puts profits before people.  Today, we are forming a grassroots movement to empower millions of Americans to ask Wal-Mart to put people first.”"

“”The rise of Wal-Mart as the world’s largest retailer has come at a high cost to our society.  Traditional organizing campaigns are too limited for a greedy, global company who is willing to cut its nose to spite its face rather than do the right thing and stand up for people,”" said Blank.  “”For too long, Wal-Mart’s business practice has been to lower our wages, pressure suppliers to ship our jobs overseas, shift their health care costs onto American taxpayers and ask communities to give over $1 billion in subsidies for their expansion.”"

“”All across America, consumers and taxpayers are waking up to the high cost of Wal-Mart’s poverty wages, reliance on taxpayer funded state health care programs and devastating impact on communities.  Wal-Mart’s values are not America’s values,”" stated Blank.  “”There is only one force powerful enough to change the largest corporation in the world, the largest retailer in the world and the largest employer in the world-the American people.  We are Wal-Mart’s consumers and it is time for Wal-Mart to wake up and start doing what is right for its employees, our families, and our country.”"

The Wake-Up Wal-Mart campaign will give people the tools they need to join together in common purpose in order to change the largest corporation in the world.  The campaign will utilize an array of organizing strategies, innovative media, a blog and other internet tools that have been used successfully in previous political and grassroots campaigns.

The website, WakeupWalMart.com, will offer concerned citizens, community leaders, activists, and workers an online vehicle where they can learn the truth about Wal-Mart’s record, as well as become an active member in this new grassroots movement. The “”Take Action”" center of the website will even feature a new tool for community leaders to Adopt-A-Store and begin forming community coalitions around every Wal-Mart location in the United States.

The website will also be used to form a new group of current and former Wal-Mart employees called the Wal-Mart Veterans Association.  This will be a place for former and current employees to join together and share their Wal-Mart experience.

In addition, the website will feature a blog about Wal-Mart that will be updated throughout the day on news and stories related to Wal-Mart.  It will become a vital resource for the millions of Americans who believe Wal-Mart needs to be changed.

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