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By Peter Jacques
- Flagstaff Resident
In recent years, the Big Box stores have become the established
American "success" story. They offer a variety of cheap stuff, all in one store and with acres of
parking. So what's the problem?
Typically, if something seems too good to be true, it is. This goes for
the Big Box stores too. If the decimation of open spaces and the increase in traffic congestion
caused by Big Box stores is not troubling, the economic effects should be.
If the mother of all Big Box stores, Super Wal-Mart, comes to Flagstaff,
some people believe it will mean more jobs. However, Lake Placid, New York, did a study and
found that for every job that Wal-Mart brought to Lake Placid, one and a half jobs were lost
elsewhere in that town. To make matters worse, a Wal-Mart workweek is a maximum of 28 hours long.
That means that nearly every job Wal-Mart "creates" is part-time, and those part-time
jobs can be eroding full-time work at a disturbing rate. If companies like Wal-Mart call a
28-hour workweek "full-time," then, in fairness to their "full-time" employees, these companies should
provide their workers with the same health benefits other companies provide to those who work a 40-hour
workweek. However, studies show that Wal-Mart and other Big Box
stores offer relatively few employee benefits. In fact, Big Box stores sometimes limit employee hours and wages to such an
extent that many of their employees qualify to collect welfare. The National Labor
Committee, a human rights organization, estimates that half of all
Wal-Mart employees are eligible for food stamps. This makes sense since the median income for a Wal-Mart employee is around
$12,000 a year while the national median income is $25,000.
One reason that jobs are said to be lost to, instead of created at,
Wal-Mart, is because corporate policy and practice competes directly within a town's current market, so
retail customers switch from other stores to Wal-Mart. Wal-Mart wins the competition, and small
business owners know this. A recent poll across several states showed that 96 percent of
respondents felt a Big Box in their area would damage their business. Seventy-nine percent anticipated
a "drastic reduction in sales volume;" almost a fifth believed their sales volume would be cut
by more than 50 percent; and 76 percent anticipated "serious reductions in profit." Almost a
quarter believed their profit would drop by more than half. Small businesses run on small margins of
profit, which means that a drop in sales by half results in a business that is hung out to dry.
This is reaffirmed by research that points to a 19 percent loss of retail
businesses over a 20-mile radius over five years when Wal-Mart sets up shop. Several studies over time, then, seem to be
saying the same thing: small businesses fail when a Big Box comes to town. People lose their jobs,
and those jobs that are created depend on public welfare systems to pick up the extra cost of
supporting the working poor. In this way, the so-called free-market is being sustained by
unseen government subsidies that take care of costs not covered when we buy our toasters and
T-shirts at the retail giant.
If working conditions at
Wal-Mart are distressing, why haven't unions been formed to
bargain collectively for better conditions? In fact, unions
have tried to organize Wal-Mart but have had a difficult
time climbing over barriers erected by the Wal. On several
occasions, Wal-Mart has been brought before the National
Labor Relations Board for charges of violating labor laws
that protect the right of workers to organize. In the case
of employee Robin Zaas, Wal-Mart was found to have
threatened the conditions of her employment for being
involved in union activity. In Ontario, the Canadian
government approved and certified the unionization of a
store in that province, even though employees voted 3 to 1
against unionizing. The government certified the union
because it said Wal-Mart interfered with the organizing
process.
Last year, in Jacksonville,
Texas, a meat department in a Super Wal-Mart voted to
unionize; the next week, Wal-Mart announced plans to get rid
of its meat departments nationwide while denying the
decision had anything to do with the union vote. Though
there are 825,000-plus Wal-Mart employees in the U.S., not a
single Wal-Mart employee is currently represented by a
union. This would suggest that Wal-Mart has not been
union-friendly, and has even violated the law, in some cases
where employees have sought out collaborative bargaining
power. Thus, employees have been discouraged from pursuing
their right to organize as United States workers.
In addition to being a
economic drain on a community, Wal-Mart can be a cultural
drain as well. For instance, Wal-Mart refuses to carry the
drug Previn, the "morning-after" pill. This means
that if Wal-Mart is the only pharmacy in town, there is no
Previn available. Wal-Mart carries only music and videos
which have passed the corporation's test of acceptability.
Several CDs and videos have had both their content and their
covers censored, and Wal-Mart simply refuses to carry some
artists. Since Wal-Mart is so ubiquitous, selling the same
things everywhere, the choices that Wal-Mart offers can
imbue cultural character with the monotone blandness
emanating from corporate heads in Bentonville, Arkansas.
This no doubt was farmer Jose Bove's rationale for trashing
the McDonalds in France last year - the limited choices
offered by large corporations, whether a fast food joint or
supermart, suppress local character, uniqueness and spirit.
Currently, Super Wal-Mart
cannot be a part of the mall expansion without a change in
zoning. Zoning involves a decision by the city's
representative council, and the council should consider the
effect on Flagstaff's working poor, small businesses, and
rich culture before deciding that our town can endure a
mega-store from the world's largest
retailer.
Peter Jacques is a
stay-at-home dad and husband. On the side, he is a student
of political science and researcher for Canyon State
Consulting.
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