Saturday, May 06, 2006

Wal-Mart Drives Down Wages

And here is another good reason to boycott Wal-Mart as if one was needed. They drive down wages. In Canada. In competition with our large big box discount grocery chains. Its not just lower costs and lower prices folks, its driven by lower wages, and NO benefits.

But Wal-Mart is not the only villian in this story, they have pals in the bosses, in this case Loblaws and its big box retail outlet Superstore, and their union, UFCW.

Canada has too many grocery stores and the situation will only get worse as discounter Wal-Mart Canada Corp. and other non-union global retailers take a bigger bite of the market, Loblaw Cos. Ltd. chairman Galen Weston warns.

To take on the growing competition, Loblaw, the country's largest grocer, is racing to overhaul its systems. It is adding more general merchandise, lowering prices and rolling out more discount superstores. And the unionized company is in contract talks in a bid to gain pay concessions and level the playing field with non-unionized Wal-Mart. Loblaw profit slips on snags in overhaul


Loblaw operates at a competitive disadvantage to Wal-Mart in terms of labour costs, as the majority of Loblaw stores are unionized. The retailer has successfully negotiated to pay employees at its 80 superstores lower wages than at its traditional stores. Loblaw girds for battle


Canada's biggest supermarket chain says it wants to open more mid-sized conventional grocery stores in downtown Toronto to serve the booming condominium market. But Loblaw Cos. Ltd. said it must first strike more deals with its unions, similar to the ones it got for its Ontario superstores, to remain competitive with non-union rivals. Loblaw eyeing hungry condo dwellers

They already gained concessions from their union, the sell out UFCW. Last round of bargaining UFCW whined about Wal-Mart, whom they have tried to unionize, while accepting the Loblaw contract without taking it to the rank and file to vote on. The threat of Wal-Mart is enough to drive UFCW into concessions, not that it needs to be pushed hard.


Since the late eighties UFCW has accepted concession bargaining by Safeways, and others and as typical of this business union, despite membership opposition. In Alberta in the 1990's concession bargaining by UFCW with Safeways inspired Ralph Klein to attack public sector wages using UFCW's two tiered wage concession and wage roll back of 5% to Safeway's as an excuse, to roll back public sector wages by 5%.

While a union is better than no union, when it comes to UFCW all they care about is the union dues, as they have accepted increased part time two tiered wages, including lower wages for new employees. Why. Well they still get the union dues whether the workers are full time or part time. They are after all in the 'business' of being a union.


The imposition of bureaucratic rule has always required bureaucratic methods, including outright dishonesty. A recent example of this process is found in the attempt by leaders of the American Flintglass Workers Union, a small, relatively democratic union, to take that union into the United Food & Commercial Workers, one of the nation's most grotesquely bureaucratic unions. Merger might have made sense for this tiny union, but given the reality of the UFCW, it was clear the "Flints," as they call themselves, would lose some of their current democracy; e.g. the election of the union's ten national reps. To get it by, the pro-merger leaders called a special convention without making the terms of the merger available until the delegates arrived. Sensibly, the delegates voted the merger down by over three to one. In this case democracy prevailed over bureaucratic method.

The battle for bureaucratic unionism was won by the 1950s and the unions that emerged looked little like those that exploded on the scene in the mid-1930s. Reviewing in horror the transformation of so many unions, Sidney Lens wrote at the time (in The Crisis of American Labor) about the rise of full-time, appointed "reps" whose swelling numbers bolstered the domination of union politics by the top officials. There had always been authoritarian leaders, but for the newer industrial unions at least all of the armies of appointees were something new. This rising tide of bureaucratic business unionism brought with it the receding fortunes of the unions themselves. Four decades later, many of labor's friends and enemies alike assume that massive bureaucracy and top-down control are the natural state of the unions, possibly "the best" state.

Kim Moody Is Bureaucracy "Best" For Unions?

Also See:

Labor Notes Bookshelf - An Injury to All"Kim Moody's An Injury to All exhaustively documents the devastating effects of management's anti-union drive of the last fifteen years.

An Injury to All: The Decline of American Unionism. - book reviews

Confessions of an orthodox militant - and contentions - response to the review of author's 'Injury to All'; includes reply of reviewer Dana Frank



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