While the UFCW is busy trying unsuccessfully to unionize Wal-Mart's stores, the International Brotherhood of Teamsters wants in its distribution centers. Via walmartworkersunite.org:
Wal-Mart workers deserve the same representation: As the world�s most modern and efficient distribution and retail system, Wal-Mart should be held to the highest labor standards for treatment of its employees. Based on Wal-Mart�s profitability, the company should be expected to set the gold standard in terms of wages and benefits.Oh, please. These guys are so full of it sometimes.
Look at the per employee profitability of ~0% unionized Wal-Mart compared say to 64% Teamsters-unionized UPS, and you'll find that this is hot air.
Unfortunately, neither WM or UPS breaks out profit from U.S. operations (I'm not certain that's even theoretically possible).
However, Wal-Mart's profit per employee was ($10.3billion / 1.6 million) = $6416 in 2004. Since the international division earns 20% of total sales, and 25% of employees, as well as some underperforming stores, this probably underestimates U.S. profit per U.S. employee a bit, but that's the data we have from the consolidated income statement.
In contrast, in 2003 (the latest data I could find), teamsters-unionized UPS had $8140 profit per employee ( $2.9billion/356K -- see the 2003 Annual Report pages 23 and 60).
So why exactly should we expect Wal-Mart "to set the gold standard" in pay when it earns less per employee than a place that the Teamsters have heavily organized?
Conflict of Interest Notice: My brother works for UPS and is a member of the Teamsters, so if anything, I should be accused of going easy on both of them.
Posted by Kevin on March, 22 2005 at 04:16 PM
