BUSINESS PROPOSAL - WRIT 340 09/19/2007 Being one of the...

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WRIT 340 09/19/2007 Being one of the largest retailers across the countries, Wal-Mart as seen to be beneficial to consumers, might not be as beneficial for the society through its employee’s sub-par wage earnings. The reduced wages paid to Wal-Mart employees in comparison to other retailers, combined with Wal-Mart’s low proportion of employees receiving company sponsored health insurance, put a large strain on public aid programs that result in a huge cost to California taxpayers. The company’s wage and benefit practices have the potential to create a downward cycle for wages and benefits across the industry. According to a book called Hidden Cost of Wal-Mart Jobs , Wal-Mart employees earn on average 31% less than the average wages of other large California retailers, while at the same time utilizing 40% more in public health care. When compared to unionized retailers, Wal-Mart employees earn 39% less and are only half as likely to have health benefits paid by their employer. Most significantly, if all other retailers in California adopted Wal-Mart’s standards for wages and benefits, the cost to taxpayers would be $410 million per year. Wal-Mart stores control the wages and benefits of workers in their stores by pushing out smaller retail businesses in the community that may have offered higher wages. Since it becomes the only game in town, workers no longer have a choice to leave. In addition to the low-wage factor, a film documenting Wal-Mart also focused on its business practices that enable them to offer prices far below their competition. The film demonstrates how the frugality of the company at all levels of business and their aggressive implementation of technology in the supply chain, which enabled Wal-Mart to operate at unprecedented efficiency. Furthermore, Wal-Mart’s massive size grants the company an immense bargaining power that can force manufacturing overseas and dictate the success or failure of entire companies. The film used the interactions between Wal-Mart and two companies to display Wal-
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BUSINESS PROPOSAL - WRIT 340 09/19/2007 Being one of the...

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