News Story
Wal-Mart brings jobs but not the right wages
Photo illustration/JamIe Siegal and Matt Quintanilla
Some advocates feel name tags like this would be more appropriate for Wal-Mart “partners” because of the low pay they receive, which is less than a living wage.
As the new Wal-Mart opens yesterday, we are hopeful that it will
come to be celebrated in Ithaca not only for low prices and a wide
selection of merchandise, but also for paying a living wage.
Along with seven other community leaders, I recently shared this
hope in a letter to Wal-Mart. The letter was co-signed by Mayor
Carolyn Peterson, County Legislature Chair Tim Joseph, Vice-Chair
Mike Lane, Town of Ithaca Supervisor Cathy Valentino, Alternatives
Federal Credit Union CEO Bill Myers, Reverend Wendy Fambro of
the First Baptist Church, UAW Local 2300 President Terry Sharpe,
Ithaca School Board member Jeff Furman and Latino Civic
Association President Carlos Gutierrez.
In another letter to Wal-Mart, 29 local ministers and other clergy
shared similar concerns. Two meetings with representatives from
Wal-Mart have also occurred, the latest just last week.
We believe in the values of fairness, the importance of supporting
working families and corporate accountability to communities. It is
unfair to pay less than a living wage, the amount an individual or
family needs to live modestly without extra assistance, to workers
who are doing all that their employer and their society asks of
them. You work hard all day and all week but then at the end of the
week find that your paycheck cannot support you and your family.
That’s wrong. And Wal-Mart, with over $9 billion in net profit last
year alone, is surely one company that can afford to do better.
How much better does Wal-Mart have to do? Full-time cashiers and
sales associates average in the $14-15,000/year range according
to a national study which used actual Wal-Mart payroll data. This is
at least 15 percent less than a living wage in Ithaca, which was
calculated two years ago as $17,540 for a single individual, plus
health insurance. For a full-time worker who works the whole year,
this comes out to $8.44/hour. But Wal-Mart’s local starting wage is
$6.50 and the average wage is “close to the $8 range,” according
to Wal-Mart’s Northeast Community Affairs Director, quoted in the
Ithaca Journal.
Then there is the issue of health insurance. Family coverage costs a
Wal-Mart employee $1,700/year with a $1,000 deductible. On
earnings of $15,000, many cannot afford this health plan. In fact,
less than half of Wal-Mart employees are covered by the company
plan. What happens next is not surprising: a study in Tennessee
found that fully 25 percent of Wal-Mart’s employees in that state
(and Wal-Mart is the largest employer there, like most states) were
enrolled in and receiving benefits from TennCare, its expanded
Medicaid program. Other studies have confirmed this fact. Wal-
Mart is not only the company with the highest profit, it is also the
company with the highest number of employees receiving
taxpayer-funded assistance for low-income working families. Is
there something wrong with this picture?
The many working families in our community whose low wages
force them to monitor their spending carefully will benefit greatly
from the wide selection and low prices that Wal-Mart promises.
They will also benefit from making a living wage and from fair and
equitable treatment on the job. So will our whole community. If
Wal-Mart can start people at $9/hour elsewhere (Secaucus, N.J.),
why is it $6.50 here?
Carl Feuer is the co-organizer of the Tompkins County Living Wage
Coalition with Pete Meyers. To learn more, and to sign their on-line
petition, go to www.walmartlivingwage.net. Feuer can be reached
at chf6@cornell.edu.
