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The Honolulu Advertiser
Posted on: Sunday, August 7, 2005

Wal-Mart battle intensifying

By ANNE D'INNOCENZIO
Associated Press

Wake Up Wal-Mart staff members include, from left, Brendan Bush, Paul Blank, Jeremy Bird, Buffy Wicks and Chris Kofinis. Wake Up Wal-Mart and Wal-Mart Watch, who are running a campaign to pressure the world's largest retailer to improve its employment and workplace practices, have won support in Congress.

Evan Vucci | Associated Press

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"We're attacking the Wal-Martization of the economy," says Andrew Grossman, executive director of Wal-Mart Watch.

Manuel Balce Ceneta | Associated Press

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"We're attacking the Wal-Martization of the economy," says Andrew Grossman, executive director of Wal-Mart Watch.

Manuel Balce Ceneta | Associated Press

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"We're attacking the Wal-Martization of the economy," says Andrew Grossman, executive director of Wal-Mart Watch.

Manuel Balce Ceneta | Associated Press

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"We're attacking the Wal-Martization of the economy," says Andrew Grossman, executive director of Wal-Mart Watch.

Manuel Balce Ceneta | Associated Press

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WASHINGTON — The battle over Wal-Mart Stores Inc. has long been waged in towns and cities, with opponents using zoning ordinances and referendums to block the big-box retailer from their neighborhoods. Now the two sides are taking their fight straight to Washington.

Working out of offices that resemble political war rooms, two groups, Wake Up Wal-Mart and Wal-Mart Watch, are running campaigns to pressure the world's largest retailer to be a better employer and corporate citizen.

Run by veterans of political campaigns, these groups are aligning themselves with lawmakers in hopes of passing laws that are aimed at Wal-Mart. They also hope to make the company a political campaign issue for 2006.

Their efforts extend beyond the Beltway. Wake Up Wal-Mart, supported by the United Food and Commercial Workers Union, and Wal-Mart Watch, which draws support from a wider network, have also recruited thousands of volunteers around the country to help their cause.

Wal-Mart, meanwhile, has increased its own Washington presence. Since early spring, its representatives have visited and written to lawmakers, particularly Democrats who have been most critical of the company. It also plans to bolster its lobbying team.

The fight in Washington comes as Wal-Mart faces increasing legal problems, from child-labor violations to charges of gender discrimination. The company recently paid a fine to settle federal charges that underage workers operated dangerous machinery, and agreed to pay $11 million to settle charges that its cleaning contractors hired illegal immigrants. It also faces a class-action lawsuit by female employees who charge Wal-Mart with gender discrimination.

Wake Up Wal-Mart and Wal-Mart Watch are fighting the discounter on issues ranging from outsourcing of jobs and gender discrimination to its environmental record. The groups are attacking its wages and health benefits, which they say are driving down pay and benefits for workers in many other companies as Wal-Mart's rivals try to compete.

Both organizations have sent letters and met with lawmakers including Sen. Edward M. Kennedy, D-Mass., Sen. Jon Corzine, D-N.J., and Rep. Rosa DeLauro, D-Conn. Around the country, they've held online petition drives, organized meetings and barbecues, staged boycotts at Wal-Mart stores and launched ad campaigns. And they're using Web sites and blogs to try to rally the public.

"We're attacking the Wal-Martization of the economy," said Andrew Grossman, the executive director at Wal-Mart Watch and former executive director of the Democratic Senatorial Campaign Committee.

Although the groups are labor-backed, they say their fight goes beyond employee issues.

"In order to change Wal-Mart we first have to build a broad base social movement in this country for change," said Wake Up Wal-Mart director Paul Blank, who was the political director for Howard Dean's presidential campaign. "This is about empowering people to build that movement."

Ray Bracy, vice president of federal and international affairs at Wal-Mart, said the company is listening to its opponents, but he described some labor-backed groups as mostly "self-serving, misguided and desperate."

As for the groups' recruitment of volunteers, Bracy responded that Wal-Mart attracts 120 million shoppers per week.

Wal-Mart, Bracy said, pays its fair share of taxes, creates jobs for Americans and upgrades the standard of living with its low prices. Wal-Mart is intent on getting that message out to lawmakers and the public, he said.

Last month, the company, which opened a lobbying office here five years ago, replaced its top legislative chief with Lee Culpepper, who was chief lobbyist at the National Restaurant Association. The eventual goal for Culpepper is to enlist the company's more than 1.3 million workers at its 3,000 stores to rally behind its legislative agenda — the way he mobilized support from the over 300,000 restaurant members at his old job.

The UFCW has cited Wal-Mart's legal problems as it broadens its campaign beyond Wal-Mart employees. The union has failed in several attempts to represent workers at individual Wal-Mart stores.

"Wal-Mart's power is its profits," said Joseph Hansen, who became UFCW president last year. "Our power is the American people."

In Washington, Wake Up Wal-Mart's full-time staff of six, which also is tapping the services of UFCW's 1.4 million members, includes communications director Chris Kofinis, who was a strategist for former Democratic presidential candidate Wesley K. Clark; political director Buffy Wicks, formerly state organizer for Dean; and field director Jeremy Bird, formerly deputy field director for Dean.

Kofinis declined to talk about how much funding it gets from the UFCW, but said that it is a "significant commitment."

Wake Up Wal-Mart has signed up 65,000 volunteers across the country and it hopes to have 150,000 by year-end.

Like Wake Up Wal-Mart, Wal-Mart Watch is aligning itself with political veterans, including Jim Jordan, a former campaign manager for Kerry, and now a political consultant to the group; and Tracy Sefl, the group's communications director, who was the deputy director of research at the Democratic National Committee.

The groups have won support in Congress. "I don't want to put Wal-Mart out of business, but there is a distinction between Wal-Mart the retailer and the employer," said Rep. Rosa DeLauro, D-Conn., who led 51 members of Congress in mid-May calling on Wal-Mart to address its record on gender discrimination.