Tuesday, February 03, 2009


As I begin my second week here as a guest blogger, I'm going to risk venturing into a couple of contentious political areas. My aim is not to provoke dissent; I simply feel that some stories are not being told.

It started when I read Nickel and Dimed, in which Atlantic contributor Barbara Ehrenreich denounces the exploitation of minimum-wage workers in America. Somehow her book didn’t ring true to me, and I wondered to what extent a preconceived agenda might have biased her reporting. Hence my application for a job at the nearest Wal-Mart.

The job was as dull as I expected, but I was stunned to discover how benign the workplace turned out to be. My supervisor was friendly, decent, and treated me as an equal. Wal-Mart allowed a liberal dress code. The company explained precisely what it expected from its employees, and adhered to this policy in every detail. I was unfailingly reminded to take paid rest breaks, and was also encouraged to take fully paid time, whenever I felt like it, to study topics such as job safety and customer relations via a series of well-produced interactive courses on computers in a room at the back of the store. Each successfully completed course added an increment to my hourly wage, a policy which Barbara Ehrenreich somehow forgot to mention in her book.

My standard equipment included a handheld bar-code scanner which revealed the in-store stock and nearest warehouse stock of every item on the shelves, and its profit margin. At the branch where I worked, all the lowest-level employees were allowed this information and were encouraged to make individual decisions about inventory. One of the secrets to Wal-Mart’s success is that it delegates many judgment calls to the sales-floor level, where employees know first-hand what sells, what doesn’t, and (most important) what customers are asking for.

Several of my co-workers had relocated from other areas, where they had worked at other Wal-Marts. They wanted more of the same. Everyone agreed that Wal-Mart was preferable to the local Target, where the hourly pay was lower and workers were said to be treated with less respect (an opinion which I was unable to verify). Most of all, my coworkers wanted to avoid those “mom-and-pop” stores beloved by social commentators where, I was told, employees had to deal with quixotic management policies, while lacking the opportunities for promotion that exist in a large corporation.

Of course, I was not well paid, but Wal-Mart is hardly unique in paying a low hourly rate to entry-level retail staff. The answer to this problem seems elusive to Barbara Ehrenreich, yet is obvious to any teenager who enrolls in a vocational institute. In a labor market, employees are valued partly according to their abilities. To earn a higher hourly rate, you need to acquire some relevant skills.

As for all those Wal-Mart horror stories—when I went home and checked the web sites that attack the company, I found that many of them are subsidized with union money. walmartwatch.com, for instance, is partnered with the Service Employees International Union; wakeupwalmart.com is copyright by United Food and Commercial Workers International Union. Why are unions so obsessed with Wal-Mart? I'm guessing that if the more-than-a-million Wal-Mart employees could be unionized, they would be compelled to contribute at least half a billion dollars per year in union dues.

I'm a big fan of Wal-Mart. As I told a friend a few years ago, it's like they are paying you to go there. I use to go into Wal-Mart to get specific things and then I found myself buying groceries because I needed that too. What was always surprising was how little food cost there. Early on I would guess the bill would be $130 and I'd really be paying $92.

Wal-Mart has done more to raise the average standard of living than any government program. If you couple that fact with the union push, you can see why they are the scourge of the Establishment.


E said...

Food, diapers, glue and tennis balls are commodities - you can buy the same box of Cheerios anywhere, price prevails, and whoever does the best job of driving down their own costs and driving up their own margins wins. Wal-Mart is a study in basic economics. The social scientists want to make everything too complex.

Dude said...

You are a pariah if you shop at Wal Mart on the left coast, yet it is full of people I don't know. The only reason I don't shop there is because it is so crazy busy and I can't stand that. Cadence has a friend who's mother ran for congress last year as an unabashed liberal. The girl Cadence's age hates Wal Mart but isn't sure why. She also thought Bush was the worst president ever but couldn't name another bad one.

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