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Wal-Mart: Promoting a Livable W age

Wal-Mart: Promoting a Livable W age. Mitchell Burgmeier Lynn DeVriese Jordan Stecklein Brock Wagner. Background . 1960’s: established their slogan of “The Lowest Prices Anytime, Anywhere” 1970’s: publicly traded company and had sales of 78 million dollars

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Wal-Mart: Promoting a Livable W age

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  1. Wal-Mart: Promoting a Livable Wage Mitchell Burgmeier Lynn DeVriese Jordan Stecklein Brock Wagner

  2. Background 1960’s: established their slogan of “The Lowest Prices Anytime, Anywhere” 1970’s: publicly traded company and had sales of 78 million dollars 1990’s: changed slogan to “Every Day Low Prices” Wal-Mart has expanded their business and “employs 2.2 million associates worldwide, serves more than 200 million customers each week at more than 11,000 stores in 27 countries” (Wal-Mart Stores, Inc).

  3. Ethical Issue Is it ethical for Wal-Mart to continue to pay their employees the minimum wage when they are one of the most profitable retailers in the United States?

  4. CST Principles An action is morally correct if it is respectful of, and guided by, the fact that human beings… …are communal beings that have a transcendent end …have certain natural rights …should be treated with justice …must work to achieve the common good

  5. CST Principles • Transcendent End • Specific Human End: the full perfection of the human • Rights theory • Right to life, Security of person, and liberty • Right to Food, Shelter, and Clothing • Right to livable wage

  6. CST Principles • Justice Theory • Justice requires the similar treatment of relevantly similar cases and the dissimilar treatment of relevantly dissimilar cases • Similar qualification, but treated dissimilar • Common good • Increase wages  Stimulates the economy

  7. The Figures • Current minimum wage: $8.25/ hour • Proposed: Raise to $12/ hour • Results of increase: • Hourly payroll: $3.21 billion increase/ year

  8. The Facts Prices: 1.1% Increase $0.46 per customer per trip $12.50 per customer per year

  9. Wages in Dubuque • Dubuque, IA Minimum Wage: $7.25 • One Adult • Poverty Wage: $5.21 • Living Wage: $7.97 • One Adult, Two Children • Poverty Wage: $8.80 • LivingWage: $23.96

  10. Wages in New York • New York City, NY Minimum Wage: $7.25 • One Adult • Poverty Wage: $5.21 • Livable Wage: $12.75 • One Adult, Two Children • Poverty Wage: $8.80 • Livable Wage: $32.20

  11. McDonald’s Employee Budget Gas? Groceries? Childcare?

  12. Impact On Wal-Mart • Employees make 50% more per hour • Circulate in company, increase revenues • Afford medical expense, stay in work • Support their target market • Giving employees a “livable wage” • Positive publicity, increase in revenues Those who earn more, spend more.

  13. Arguments AGAINST adopting a living wage • Higher Wages = Higher Prices • Potentially Harm Profitability of Wal-Mart • Higher Costs & Lower Margins

  14. It’s already been done! Walmart Costco 1 According to Glassdoor.com as of March 2014 2According to Businessweek • Sales Associate Pay 1 • $8.89 per Hour • Health Insurance 2 • Over 50% of Employees • CEO Compensation 2 • $19.3 Million • Cashier Pay 1 • $15.06 per Hour+Bonuses • Health Insurance 2 • 88% of Employees • CEO Compensation 2 • 4.9 Million

  15. Comparison Walmart Costco • Market Cap • $247.9 Billion • Annual Sales Revenue • $476 Billion • Full-Time Employees • 2,200,000 • Market Cap • $49.2 Billion • Annual Sales Revenue • $105 Billion • Full-Time Employees • 103,000

  16. Adopting A Livable Wage Will… Increase Worker Productivity Change Negative Perception Walmart Increase Income Equality Grow The Economy Increase Returns to Shareholders

  17. Works Cited Fairchild, Caroline. "$12 Minimum Wage For Walmart Workers Would Cost The Average Shopper Just 46 Cents Per Trip." Huff Post Business. The Huffington Post, 18 July 2013. Web. 08 Apr. 2014. Glasmeier, Dr Amy K. "Introduction to the Living Wage Calculator." Living Wage Calculator. Massachusetts Institute of Technology, 2014. Web. 08 Apr. 2014. Gordan, Claire. "Walmart Vs. Costco: How Do They Really Compare?." AOL. 12 Jun 2013: n. page. <http://jobs.aol.com/articles/2013/06/12/walmart-costco-comparison/>. Holland, Joshua. "Wal-Mart ‘Looking At’ Supporting a Minimum Wage Hike." Moyers and Company. N.p., 20 Feb. 2014. Web. 09 Apr. 2014. Jacobs, Ken. "Living Wage Polices and Big-Box Retail: How a Higher Wage Standard Would Impact Walmart Workers and Shoppers." University of California, Berkeley Center for Labor Research and Education Research Brief. (2011): n. page. Web. 5 Apr. 2014. <Jacobs, K. (n.d.). Living wage polices and big-box retail: How a higher wage standard would impact walmart workers and shoppers. Retrieved from http://laborcenter.berkeley.edu/retail/bigbox_livingwage_policies11.pdf>. Jamieson, Dave. "Walmart Wage of $12 Wouldn't Drive Up Prices, Says Study." Huffington Post. 19 Apr 2011: n. page. Web. 5 Apr. 2014. <http://www.huffingtonpost.com/2011/04/19/walmart-pay-worker-minimum-wage_n_851115.html>. Wal-Mart Stores, Inc. "History Timeline." Walmart Corporate. Wal-Mart Stores, Inc., 2014. Web. 09 Apr. 2014.

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