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January 4, 2001

Wal-Mart Supercenter CEO Named in Federal Charges for Violation of Worker Rights
Labor Board Investigation Finds Wal-Mart Threatened, Coerced And Intimidated Workers To Suppress Union Support At Kingman, Arizona Store

Illegal Activities Poisoned The Atmosphere Before Union Representation Election

The National Labor Relations Board (NLRB) has issued a complaint charging Wal- Mart Stores Division CEO Tom Coughlin and other managers with widespread violations of federal law in the period before a scheduled union representation election at the company's Kingman, Arizona store. The federal complaint contends Coughlin and the other managers "interfered with, restrained, or coerced, and is continuing to interfere with, restrain or coerce" employees in violation of federal law.

A majority of the 18 associates working in the Tire and Lube Express at the Kingman, Arizona Wal-Mart Supercenter signed cards authorizing the United Food and Commercial Workers Union (UFCW) Local 99R to give them an organized voice on wages, health benefits, scheduling and working conditions. The UFCW filed a petition with the NLRB for a secret ballot union representation election in August, 2000.

Wal-Mart's systematic intimidation and other illegal activities against its workers forced the union to block the scheduled election. At that time, company executive Jay Allen claimed that the union blocked the election "when they knew they would lose." Actually, the NLRB held up the election pending its investigation of the union charges which led to the Board's complaint against the retail giant.

The complaint cites Wal-Mart for illegal surveillance of its employees, illegally soliciting complaints from workers, and making implied promises to remedy problems as a way to dissuade support for the union. Managers also illegally threatened workers with loss of benefits such as their store profitability bonus and discount card, and made changes to working conditions to discourage workers from organizing.

"Wal-Mart would rather break the law in order to break its employees' will to exercise their federal right for a free and fair voice on the job. Bentonville executives like Tom Coughlin think they are above the law. Now, the Labor Board is setting the record straight that Wal-Mart breaks the law and then lies to the public," said Mike Leonard, UFCW Director of Strategic Programs.

A spokesperson for the retail giant consistently deflects questions about employees' efforts to get a voice on the job by claiming the union is "wasting everybody's time." Since Sam Walton died, however, employee voices aren't heard in Bentonville, and his sucessors have resorted to legal and illegal actions to delay, discourage, or prevent its employees from gaining a voice.

"Wal-Mart workers want and deserve to earn a living wage that can support a family with decent health insurance and retirement security. The UFCW will work as long as it takes to help Wal-Mart workers reach their dream of a better workplace and a better life. Wal-Mart insults its employees by insinuating that the desire for fairness and respect is a waste of time," said Leonard.

A full hearing on the recent NLRB complaint is scheduled for May 1, 2001.

UFCW Local 99R is the largest private sector union in Arizona, representing more than 15,000 workers at Safeway, Smith's and Fry's supermarkets. The UFCW is the largest organization of retail workers in North America, with 1.4 million members. Workers at retail food industry leaders such as Kroger and Safeway are members of the UFCW.

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