somewhat bias, but worth reading

Low Prices At What Cost?

WAL-MART WATCH ANNUAL REPORT 2005

Everyone loves a bargain, and Wal-Mart’s “always low prices” draw millions of Americans to its stores. In fact, 8 in 10 Americans shop at Wal-Mart’s stores. Is Wal-Mart really such a good value, or do consumers pay in other ways?

For the first time, the staff of Wal-Mart Watch answers this important question. Drawing on a wide range of research, the 2005 Wal-Mart Watch Annual Report tells the whole story behind the largest corporation the world has ever seen.

ALWAYS HIGH PRICES

What’s the matter with Wal-Mart? Consider these facts:

• Wal-Mart fails to cover 60% of their workers with any health insurance
• 70% of Wal-Mart merchandise is from China
• When Wal-Mart comes to town, for every two jobs it creates three jobs are lost

The way Wal-Mart runs its business has accelerated the outsourcing of U.S. manufacturing jobs overseas, lowered working standards at home and shifted the burden of caring for their employees to U.S. taxpayers. Wal-Mart’s low prices have come at a high cost:

• Wal-Mart costs federal taxpayers over $1.5 billion a year in welfare to their employees
• Wal-Mart tops the list of companies with employees and their dependents on public assistance in at least 11 states
• Wal-Mart has agreed to pay $4.1 million in Clean Water Act violations and $50 million to settle allegations of underpaying employees

CONTENTS

• BOTTOM LINE: What are the true costs of Wal-Mart’s low prices?
• ON THE PUBLIC DOLE: Why should taxpayers subsidize Wal-Mart’s health care bills?
• REALITY CHECK: With over $10 billion in profit, why can’t Wal-Mart pay workers more?
• STRANGLEHOLD: Wal-Mart’s power over suppliers...at what cost to American jobs?
• CHINA’S BEST FRIEND: What happened to Wal-Mart’s “Buy American” program?
• GRAND OPENING: What is Wal-Mart’s impact on America’s small businesses?
• DOUBLESPEAK: With so many accused violations of environmental laws, how can they call themselves a green company?
• CONTROL: How are the Waltons using their $90 billion fortune to change our future?
• EXCESSIVE PAY: Wal-Mart’s CEO Lee Scott reported $17,543,739 in income last year. How much is too much?
• CORRUPTION: Wal-Mart’s former No. 2 executive is accused of stealing $500,000. Who’s minding the shop?
• SEX DISCRIMINATION: Why doesn’t Wal-Mart treat women fairly?
• TIME THEFT: Why have so many Wal-Mart store managers kept employees working off-the-clock and unpaid?
• THE RIGHT TO ORGANIZE: Has Wal-Mart’s anti-worker activity crossed legal and ethical lines?
• SWEATSHOP SAVINGS: What is Wal-Mart doing about sweatshops?
• CENSORSHIP: How Wal-Mart limits choice and imposes arbitrary standard.