Wal-Mart's "Image Problem"

The following letter to the Editor was submitted by DSA's National Director to the New York Times in response to an article describing Wal-Mart's efforts to deal with its "image" problem. Such articles are often picked up and rerun local papers or the story line appears in other papers. Please feel free to rework the letter and submit it to your local paper should they run a similar article.

To the Editor:

Wal-Mart's problem is decidedly not an image problem, so expenditures to find and fix "the problem" by the usually parsimonious retailer [reported by Constance Hays in your August 14th issue] are a waste of shareholders money.

Wal-Mart is our nation's largest employer with more than 800,000 employees. It is an architect, and the primary corporate beneficiary, of America?s low-wage economy. Wal-Mart is a revolutionary retailing force that secures a competitive advantage by paying low wages to its workers. It uses its tremendous market clout to pressure its suppliers to drive down the wages of their own employees. These business practices have helped make it the world's nineteenth largest economy. Henry Ford--the economic revolutionary of the 20th century--secured his place in history with exactly the opposite policy. Ford paid more than the prevailing wage precisely so workers would be able to buy his cars.

Wal-Mart's indifference to the well being of its workforce and its predatory pricing policy are integral parts of its business plan and corporate culture. No TV ad or high priced consultant can fix that problem. Only a significant change in the actual practice and culture of the company will change its "image problem" now that many Americans are beginning to understand how Wal-Mart succeeds.

The solution is to raise the wages of Wal-Mart employees as well as the employees of other retailers following in its footsteps. The success of the United Food and Commercial Workers Union campaign to organize Wal-Mart"s employees will mean higher wages for all Americans and force needed change on the company.

Frank Llewellyn, National Director
Democratic Socialists of America
180 Varick St. 12th fl. New York, N.Y. 10014
212-727-8610 ext 30
www.dsausa.org/lowwage

The original article by Constance L. Hayes was titled "Wal-Mart, Aware Its Image Suffers, Studies Repairs" and was printed on Aug. 14, 2003. It can be found here

(Registration with the NYT may be required to view the article)