Corporate Responsibility

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UFCW Statement on A&P Bankruptcy Developments

A&PFor Immediate Release: July 24, 2015

Contact: press@ufcw.org

Montvale, N.J. – The United Food and Commercial Workers (UFCW) International Union International President Marc Perrone, released the following statement on behalf of UFCW Locals 27, 100R, 152, 342, 371, 400, 464-A, 1245, 1262, 1360, 1500, 1776 and RWDSU Locals 338 and 1034, after meeting with A&P executives to discuss the future of A&P and its proposed sale.

“For years, the hard-working men and women of A&P not only did their jobs, they personally and financially sacrificed to invest in A&P’s success. These sacrifices were made for the sake of their families, their co-workers, and the customers and communities that they deeply care about. Now, at this critical time, after repeated mismanagement and strategic mistakes made by company executives, A&P is asking for even more. Enough is enough!

“Instead of asking for more sacrifices to pay-off a select group of executives and corporate investors, A&P should be focusing on their workers and their families during this challenging time.

“We want to be very clear, our members and their families sacrificed. They invested financially and personally in the success of these stores and they remain committed to working hard to make these stores a success for any responsible buyers. But make no mistake, we will not take part in any effort that asks them to give up what they have earned and deserve.

“Looking ahead, we will work cooperatively and constructively with anyone, but we will fight back with everything we have if A&P or its financial backers attempt to further exploit our members. For A&P to ask our members to give up their rights and benefits is simply unacceptable. Moreover, it is an insult given that it is our hard-working members who have and will make these stores a success. In fact, what will make these stores a true financial success is new and responsible management, not more sacrifices by A&P’s hard-working men and women.

“If A&P, its executive team, or its investors want to play the blame game, they should all look in the mirror.

“Now is the time for A&P to do what is right and we fully expect that they will honor their responsibilities to its employees, our members, and their families.”

New Report Sheds Light on Walmart’s Overseas Tax Havens

Nancy-PayYourFairShareAmericans for Tax Fairness released a new report yesterday that sheds light on Walmart’s placement of at least $76 billion in assets into an elaborate, undisclosed web of 78 subsidiaries and branches in 15 offshore tax havens, which may be used to minimize foreign taxes where it has retail operations and avoid U.S. taxes on those foreign earnings.

The report, titled The Walmart Web: How the World’s Biggest Corporation Secretly Uses Tax Havens to Dodge Taxes, shows that the retail giant has made tax havens central to its growing International division, which now accounts for one-third of the company’s profits. Walmart’s network of 78 undisclosed overseas subsidiaries in tax havens have no retail operations and few, if any, employees. Twenty-two of these paper companies are in Luxembourg alone, a country that plays a central role in the company’s tax haven network.

The retail giant has avoided scrutiny of its international tax dodging in the past by declining to disclose its tax haven subsidiaries on Exhibit 21 (“Subsidiaries”) of the company’s annual 10-K filing with the U.S. Securities and Exchange Commission.

“Companies use tax havens to dodge taxes. It appears that’s the secret game Walmart is playing,” said Frank Clemente, executive director of Americans for Tax Fairness. “We are calling on Congress, federal agencies and international organizations to determine if Walmart is skirting the law when it comes to reporting its use of tax havens, using various schemes to dodge taxes, and getting a sweetheart deal from Luxembourg that is the equivalent of illegal state aid. Average Americans and small businesses have to make up the difference when Walmart doesn’t pay its fair share of taxes.”

New Report Reveals How Retail Industry is Failing Black and Latino Workers

NAACP Retail Race Graph

Demos and the NAACP released a  report last week titled, “The Retail Race Divide: How the Retail Industry is Perpetuating Racial Inequality in the 21st Century.” The paper examines the differences in retail workers’ occupations, earnings, and schedules to reveal how employment in the retail industry fails to meet the needs of the Black and Latino workforce and, as a result, perpetuates racial inequality. As one of the largest sources of new employment in the U.S. economy, and the second-largest industry for Black employment in the country, the problems of occupational segregation, low pay, unstable schedules, and involuntary part-time work among Black and Latino retail staff point to an important chance for employers to make a real impact on racial inequality by paying living wages and offering stable, adequate hours for all retail workers.

The findings show that there is a high demand for workers in the retail industry and finding employment is not the problem for Black and Latino workers. Instead, these workers and their families experience hardships because of the lack of stable pay due to unpredictable hours that fluctuate from week to week, and wages that fall short of meeting a family’s basic needs even with full-time hours. These conditions leave nearly one in 10 retail sales workers in poverty, despite being employed. This number is even higher among Black and Hispanic workers who, not only, face prevalent low-wages and unstable scheduling practices, but the additional obstacles of racial inequality in the labor market.

For a quick breakdown of the jarring statistics from the report, watch below–also available in Spanish.