Corporate Responsibility

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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.

 

New Charge Against Hanover-Lebanon Cooperative Society Alleges Unlawful Anti-Worker Conduct

Co-op Charged with Intimidating and Interfering with its Workers’ Rights

nlrb-638x430Last week, the UFCW filed a federal charge with the National Labor Relations Board alleging that management at the Hanover-Lebanon Cooperative Society in New Hampshire unlawfully stifled workers’ rights to organize – including preventing them from talking about unions inside the store and intimidating workers who were discussing organizing a union. The Hanover-Lebanon Cooperative Society employs over 400 workers out of five retail locations and a commissary kitchen and does business locally as The Co-op Food Stores.

“Unions and co-ops are like peas and pods – they stem from the same core, they share the same values,” said co-op Member Len Ziefert. “It is antithetical for co-ops to oppose unionization, unions are employees working cooperatively.”

The member-owned co-op has been in the spotlight over the last year following the termination of two well-regarded employees. The fired workers sued co-op management, claiming they were fired as retaliation for speaking out about workplace conditions and for talking with union representatives. After the fallout from this lawsuit, members elected three new directors to the board who are focused on making the co-op more worker-friendly. While the wrongful termination case is currently still being litigated, this unrelated NLRB charge raises the question if anything has changed at The Co-op Food Stores or if co-op management continues to engage in anti-worker practices.

“By standing together in union, workers preserve their voice and true co-op principles,” said Reid Kotlas, a regular shopper. “The Co-op Food Stores should live up to the values of its member-owners and of the co-op movement and respect its workers’ rights to organize a union.”