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Walmart Worker-Shareholder Reacts to Q1 Earnings Report

Overview of Walmart’s first quarter sales report:

  • WMT reports 1st quarter results below expectations
  • EPS was $1.03 vs an expected $1.05; revenue was $114 billion vs an expected $116.2 billion
  • Same store sales of 1.1% at WMT US and just 0.4% at Sam’s Club were below the 1.5% gain expected for both segments
  • Promised investments in labor were disappointing, and amounted to less than analysts had expected for the quarter

OUR Walmart member and Walmart shareholder Teresa Adams of Pico Rivera, Calif., today, issued the following statement in response to Walmart’s Q1 earnings report:

“Walmart’s weak earnings report this morning is telling, but it’s nothing new for the countless number of associates nationwide who have been calling for a change to the company’s low-road, low-wage business model over the past few years. When workers who are committed to the company’s success can’t secure much-neeWM RUS_Fotorded pay and hours, they aren’t the only ones who suffer. Customers lose, and so do shareholders. Shelves aren’t properly stocked. Check-out lines are long. And the company’s reputation takes a hit when its employees don’t make enough money to stay off government assistance programs, At a time when Walmart needs to be investing more in its employees and stores, it closes four apparently profitable stores and lays off a reported 2,200 workers, while grasping at straws to justify the move. I think it’s no coincidence that OUR Walmart members were active in one of those stores.

“My fellow OUR Walmart members, like Shannon Henderson who made about $13,000 last year working as many hours as Walmart would let her, and I have been working to offer solutions to the problems that plague the company and its operations. CEO Doug McMillon has responded to one of our demands by raising wages for those of us at the bottom of the ladder, but it’s not enough. We all need higher wages and, even more importantly, we need more hours for ourselves and for our customers.

 “OUR Walmart Associate-shareholders are going to the upcoming Walmart annual shareholder meeting, where we have submitted two shareholder proposals. We are encouraging shareholders to use their votes to rein in executive compensation and incentivize sustainable investment, such as fair wages and more hours for workers.

 “It’s long past time for Walmart and the Waltons to take an honest and candid look at the concerns raised by investors, shareholders and customers. Treating associates with respect and providing adequate staffing and hours are fundamental to putting Walmart on the path to strong sales and success. And that’s the direction Walmart needs to go.”

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LEGAL DISCLAIMER: UFCW and OUR Walmart have the purpose of helping Wal-Mart employees as individuals or groups in their dealings with Wal-Mart over labor rights and standards and their efforts to have Wal-Mart publically commit to adhering to labor rights and standards. UFCW and OUR Walmart have no intent to have Walmart recognize or bargain with UFCW or OUR Walmart as the representative of Walmart employees.

 

CEO Pay Continues to Rise; Walmart Workers Prepare to Call for Change at Shareholders Meeting

CEOs paid 373 times average worker pay, according to 2015 Executive PayWatch

ceopayWASHINGTON, DC—As Americans rally behind initiatives to raise pay for working families, CEO pay for major U.S. companies has skyrocketed. According to new AFL-CIO Executive PayWatch data, CEO pay increased nearly 16 percent in 2014, while Walmart and the Walton family continue to drive inequality nationwide.

The Executive PayWatch website, the most comprehensive searchable online database that tracks CEO pay, showed that in 2014, the average production and nonsupervisory worker made approximately $36,000 per year, while S&P 500 company CEO pay averaged $13.5 million per year – a ratio which has grown to 373-to-1. Meanwhile, a full-time worker making the federal minimum wage is paid just $15,080 a year, well below the poverty level for a family.

 Mega-retailer Walmart, highlighted in this year’s PayWatch, represents one of the most egregious examples of CEO-to-worker pay inequality. CEO Douglas McMillon is paid $9,323 an hour. A new Walmart employee making $9 an hour would have to work 1036 hours to earn what McMillon makes just 60 minutes. PayWatch also notes that six Walton family members have more wealth than 43 percent of America’s families combined.

“I made about $13,000 last year, working as many hours as the company would let me,” said Shannon Henderson, a Walmart employee and mother of two in Sacramento, California. “I work for the richest company in the world, and I can’t support my family without public assistance. That’s not right, and that’s why I’m not going to stop fighting for $15 and full time.”

Earlier this year, Walmart caved to worker pressure and announced it would raise wages for 500,000 U.S. associates. But despite the modest increase—and without any guarantee of adequate hours —many workers are still forced to rely on government assistance programs like food stamps to get by. Meanwhile, the company escalated its retaliatory actions against associates to a new level last month, when it abruptly closed five stores and laid off more than 2,000 workers, citing “plumbing issues.” Among the stores Walmart closed is the Pico Rivera, California Supercenter, the first store to go on strike in 2012, as well as the site of the first sit-down strike prior to last Black Friday. Walmart has failed to offer any evidence of a plumbing emergency that would require the immediate closing of five stores.

In light of the data released by Executive PayWatch, Walmart workers are prepared to demand change and accountability from the world’s largest retailer. As Walmart’s annual shareholders meeting approaches, workers have announced their intention to propose a shareholder resolution that would rein in executive compensation and incentivize sustainable investment, such as fair wages and benefits for workers.

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LEGAL DISCLAIMER: UFCW and OUR Walmart have the purpose of helping Wal-Mart employees as individuals or groups in their dealings with Wal-Mart over labor rights and standards and their efforts to have Wal-Mart publicly commit to adhering to labor rights and standards. UFCW and OUR Walmart have no intent to have Walmart recognize or bargain with UFCW or OUR Walmart as the representative of Walmart employees.

OK Foods Fires Maintenance Workers Illegally

UFCW Alleges Company Fired Workers for Union Activity in Unfair Labor Practice Charges

OKfoodsnewsletter-300x160Heavener, OK: United Food and Commercial Workers Local 1000 is formally filing Unfair Labor Practice charges with the National Labor Relations Board alleging that two UFCW organizing committee members were illegally fired last week by OK Foods in Heavener, OK.

Local 1000 President Ricky Burris said, “Joshua Deases and Jason Muller were fired illegally last week. These two have been leaders in the organizing campaign at OK Foods to help maintenance workers get a voice at work. Both of them testified on behalf of the union in front of an NLRB Hearing Officer last year and served as official observers in the May 1st, 2014 election. The NLRB set the May 1st election aside because of repeated violations of the National Labor Relations Act and now OK Foods is again violating the Act by firing these workers. I strongly condemn these terminations.”

Maintenance worker Jason Muller said, “I’m not discouraged. The more they harass pro-union workers, the harder we will fight. OK Foods won’t intimidate us. OK Foods is persecuting Josh Deases and myself because of our union activities. This company, and specifically the CEO Trent Goins, should be ashamed.”

UFCW Local 1000 represents 11,000 workers across Oklahoma and North Texas including people who work at grocery stores and food production facilities. UFCW Local 1000 is an affiliate of the United Food and Commercial Workers International Union, which represents 250,000 poultry production workers across the United States and Canada.