Walmart: The High Cost of Low Price • FULL DOCUMENTARY FILM • BRAVE NEW FILMS
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Please give a warm welcome to Lee Scott, ourPresident and Chief Executive Officer, Walmart
stores, incorporated.
Whoah! I know... Thank you... Thank you...I know...
Alright, alright.
Every year.
Okay, okay.
It would be a pleasure for anybody to be theCEO of this company because y'know it doesn't
matter if you're Sam Walton, or you're DavidGlass, or you're Lee Scott.
When you come to this meeting, year afteryear, you get to say -we had record sales.
We had record earnings. We had record reinvestmentback into our company.
But you know I say all that, but let me tellyou my friends, you better be ready to be
better. Because today, for whatever reason,whether it's our success or our size -Walmart
Stores, Incorporated, has generated fear -ifnot envy, in some circles.
And that makes it more important than everthat we focus on doing the right thing, and
doing things right -every time.
There are two things that we should do. Numberone, is tell the Walmart story. Get the message
out there.
And the second thing is -stay the course.Walmart is too important to individual families
who are stretching a budget. We're too importantto the suppliers who employ millions of people.
We're too important to our associates -forwhom we have so much love, and value so much.
And your company will continue to demonstrateour citizenship as a good employer -and a
member of the communities that we serve sowell around this world. Ladies and gentlemen,
I'll promise you this -we're going to staythe course. And this company is going to continue
to grow.
Actually [we] started in 1962. Started onMain Street and Middlefield. Little country
store that at that time was started in thefamily, and it was pretty difficult to know
-it was a big decision. And my brother andlaw and I decided we were going to take that
step and we went into business. We startedin a little one room building that had a full
basement but we didn't have any plumbing inthe basement -but the upstairs retail area
was very small.
We were there for a year and a half to twoyears, then we moved on to a larger store
in a shopping center. We spent several yearsthere and proceeded in 1992 -we built this
facility here.
This gentleman here, that happens to be myson. He's been my right hand man for many
years. It was much easier to retire in 1996when he was here to take over.
One of the biggest parts of our store beingin a rural area is what we call our hardware
section -we've got the nuts and the boltsand the nails, and those types of fasteners.
That's always been good because a lot of farmerswere always mending machinery and things around
the farm. And some of the kids that were -kidswhen I was growing up, y'know, in here, now
they've got families, they come in here forthe fix it up type things.
Since I was eight, come down on Friday nightsafter school. I'd work until nine.
I worked here since I was six. I swept, orhelped customers when I was young, too. At
the end of the day, grandpa or dad would giveus their pocket change. I spent a lot of late
nights in here, too. Especially when we werebuilding it.
I generally arrive here about 7:15 in themorning and I unlock the door. I come in and
turn the lights on, and I get the day moneyfor each drawer in the registers, and I open
up the registers. And usually at that timeTom is here, Tom goes ahead and kind of tidies
up the front of the store and sets out theAmerican flag and the benches for our customers
to sit on. A lot of times the Amish fellason their way to work will stop here for things
they need for their day's projects. They'llcome and get plumbing or electrical supplies
-or a lot of times, sporting goods. We havea busy sporting goods division.
John has been preparing for trying to changesome of the stock and inventory. Keeping in
mind basically to stay with service. If youcan't compete in one area, we're going to
stay with something that is not offered, orthat you can compete in.
Oh, I've been shopping here for 32 years orso. All my needs that I need for hardware.
The mass merchandisers, to a great extent,do not provide excellence in service. I'll
use Walmart as an example. And you're reallylucky if they have anyone in the plumbing
section who knows anything about plumbing.
We've been trying to get ready for them, probably,for the last ten years.
We had a meeting with all the guys, explainingthe purpose of our job, and to make sure we
do everything right. Explain what Walmartdid, and what we do, and what we do different.
This was brought to us by an Amish customerof mine. He is so much against the Walmart
movement after reading this book that he wantedto start passing them out, or start selling
them to friends. So that's basically... I'vegot a few extra ones, and I'm getting rid
of them, and he's doing the same.
I have never been in a Walmart store, andI never intend to go into a Walmart store.
I've never had the need, and I've never liketheir principles. That's not nice to say at
all, probably, but I've seen a lot of smallcommunities crucified and forced out -ma and
pa operations that had been in business foryears, that are out on the street. They just
had to close their doors. Just because ofone entity. And it appears that is their intent.
To come into the community, and force everybodyout.
They did nothing but lay down the red carpetfor them. I know how hard it was for my dad
and my grandfather to build this buildingon this lot. They went through everything
to try to get the commissioners and stuffto allow them to build here. I mean, we had
sign issues, they've gotta be a certain size.We had to make sure we had enough green around
the area.
I'm all for free enterprise, but when youlook at the big picture, the people that own
the company are the richest people in theworld. So, the reality is they could spread
that out. I'm curious to see how much they'llactually give back to the community.
To even use American with Walmart in the samesentence is just... I don't agree with at
all. It's... It's like a Chinese company tome, only with American board members.
It's not a mystery, they've come right outon record and say they don't buy American.
And all it's done is give China better distributioncenters, where as before, they'd have to find
contacts, who to sell to, and develop theirown markets. Now they've got a pipeline into
everybody's living room by going through Walmart.
I think the government should have more control.You talk about monopolies! If Walmart is not
a monopoly, I don't know what is.
I'm not at all in favor of any kind of communismor socialism, I believe that America should
always and forever remain free. However, Ithink that there needs to be regulations established
where... and y'know. they busted up StandardOil. And they busted up Ma Bell. But Walmart
seems to be going on a rampage through theAmerican economy and nobody is even paying
attention.
The logic of it escapes me. And I spent alot of time thinking about it.
I'm a Republican, I'm a conservative, butI'm following very closely what is happening
with the Unions. It used to be that the unionwage was something that everybody would look
up at and say, "Wow, he's a Union Worker,he's making $18 or $20 per hour." And I realize,
that's what we're paying our people. We'renot Union. Yeah, I'm all for the Unions doing
whatever they can do and y'know... Whetherit be Walmart or K-Mart, or any story that's
not gonna pay a fair wage.
I'm a staunch American, I love America -it'sthe finest, free-est country in the world.
And I'd still, at my age, I'd fight and diefor this country. But it seems that there
are things going on within this country -particularlyfrom a business and economic standpoint that
aren't for the good of the people. I mean,the people en masse. Y'know, small segment
of the population is doing well by what ishappening, but the greater majority of the
people are being made subservient.
I mean, Sam Walton, I don't think would becomfortable with the way things are going
right now. I don't think this is why he startedthe store, it wasn't to crush other competition.
We have people in this town -families whocan't feed their children. And families who
have their entire belongings in a car or ina trailer, and are spending most of their
life in their car or at the mall because they'vebeen evicted from their homes. Because they
can't find work. They can't find work.
And I think there's a lot of people that don'trealize there are those people in town. You
say that's in Milderford, and they say no,that's not the case.
I was dreaming, all of the sudden that thepeople in this town caught on to a great extent
and we were all out in the street, protesting.But I think the likelihood of that happening
is... we'll probably see pigs fly before then.
I put this business plan together with thehelp of different hardware organizations.
I went to several different banks to checkon some funding, and when I got an appraisal
on my business and the buildings, the appraiseractually came in and devalued the building.
Here, I figured it'd be appreciating afterlike ten years... And he came in and said
a lower value, and I questioned myself -Isaid "How could this be?" Because y'know,
with inflation, and the economy isn't great,but... it still should at least be holding
it's value. He said no, any time a Walmartcomes into town, they knock the values down
because sooner or later, there's going tobe a bunch of empty buildings and none of
them are going to be able to sell.
Any community in a grand opening is goingto see a change. A drop in sales, it happens,
regardless of whether it's Walmart or somebodyelse. You'll get a drop in sales. So there'll
be a dramatic change in something. How longit'll last? It can't last forever, because
you can't stand the overhead if you don'thave the business. So something has to happen.
Unless you just hope it doesn't come to thatpoint. But you never know.
Well right now, after we liquidate product,I'm in the process of trying to sell the building,
as well as get somebody in here that'll beable to lease... I've got a couple of people
on the line right now that want to talk tome within the next couple of days. And hopefully
we'll work something out. We're going to sellthe property and I'll be able to pay all of
my bills and walk away without any debt. That'sif it all works out right. I pray that it
will.
I remember that like it was yesterday. Tohell with it. Walmart'll buy the whole damn
town. We'll shut them down. We used to drivethrough towns, going "6 months, 3 months,
6 months", and then they'd be closing.
Drive up all the way to New York City on Route80, you can pull off to Clarion on or any
of those towns up there, and you'll see aWalmart up in the hill. You'll see a Perkins,
maybe a Burger King. And then you'll drivefurther into the town, and you'll see an empty
town.
It looks like a neutron bomb hit it.
They don't get it. We start talking aboutquality of life, they start talking about
cheap underwear. I keep saying, "You can'tbuy small town quality of life at a Walmart,
they don't sell it." But once they steal itfrom you, you can't get it back at any price.
We thought it was the most fantastic thingin the world when Walmart was coming to Hearne,
Texas. I mean, it was like they bestowed somegreat honor to the community. And we welcomed
them literally with open arms.
We could not say enough good about them. Wecould not do enough for them to help them
come. When Walmart first made the decisionto come here, you could come to town on a
Saturday evening, and not find a parking place,anywhere.
I came to downtown Hearne on Saturday beforeChristmas, and there was twelve cars in downtown
Hearne. I counted them. Twelve cars in downtownHearne. That is pathetic.
Walmart was a great thing for our community.It's really awakened the west side of our
town.
I think Sam Walton would tell us, just ashe did before he passed away, that the number
one thing in this company is our associates.And we've got stores that aren't treating
associates as well as they should be treated.
And, you know, it's a community college. Ididn't have much for anything else. And I
was doing really well. Y'know, I had a 4.0average, but life happens, y'know. My dad
got sick, my mom got sick -and things happen,and it just didn't work out the way I thought
it was going to.
When I started working there, I had so muchpride in my job. I did. Um, I didn't mind
being there when they needed me. I didn'tmind doing -I knew that we were short staffed
-at that time I didn't know it was a purposefulthing that um, that's their intention.
They had stacks like this of applicationsin the back. They just didn't hire them. And
then we're told, "We don't know what to do,we don't have the people. We don't have this,
we don't have that." And I really did, atfirst, I was really, I felt bad for them,
I was like "okay, 'l'll give you an extrahour here, I'll come in early tomorrow, okay,
I won't take my day off."
Always having to stay late. You're supposedto work until eleven, you stay until twelve,
twelve thirty.
Keep the number of associates from being fulltime as many as you can, you keep them part
time as much as you can. And just keep reducingthat expense.
The company doesn't allow the stores enoughpayroll dollars on their budget to get this
job done. And the job is enormous. This companyis rowing in the, raking in the dough in sales.
I mean, my store alone did over 100 milliondollars in sales the year that Ieft.
Having to get up with the kids, get them just-getting them out to school, after four hours
sleep.
They don't care about what you sacrifice,it doesn't matter how many people lose their
families. It doesn't matter if the associateshave good health care. It doesn't matter -anything,
other than what the bottom line profit isfor that store that month.
It just makes it really difficult to havea good family life at Walmart.
Y'know, if you can squeeze every dime outof them, you go for it! And it doesn't matter
what happens to their families, if they fallapart, they get sick, y'know. The hell with
them.
We're troubled by the fact that there arepeople who work full time, who in fact cannot
provide enough for their families to livedecently.
It was just impossible for me to pay my billsand pay for day care, and work.
You should have plenty of time to go intothe office.
The money that I did get went right back intoWalmart. I'd get my check, have it deposited,
go shopping.
I had -when I first started Walmart, I hadmy kids on the um, Walmart insurance. It got
to the point where it just was too much forme to handle, I just couldn't afford it. I'd
have to pay my premiums at work, and thenwhen I took them to the doctors, I still had
to pay.
I always had to pay a chunk of money.
I'm proud of the fact that we have the benefitsthat we have, and we have the wages we have.
People that's making seven dollars an hourthat has to go to the doctor, they're not
going to be able to meet their deductible.
Y'know, I have an eighteen month old baby,and he didn't have any kind of insurance.
When he was sick, I would have to try andfix him myself, like get him medication myself.
If he had to go to the doctor, I would haveto take him, and pay it as I could.
Sam Walton believed that it was inappropriatefor an associate with illness in the family
to have to worry about how are they goingto survive the financial impact.
I was under my mom's insurance plan, witha local grocery store that she worked for.
And any prescription it was, it didn't matterwhat it was, it was five dollars. And now,
through Walmart, that one bottle of pillsI'm paying seventy dollars.
But I can't afford to put my children on theWalmart insurance, because it's too expensive.
There's no way I can afford to have seventyfive dollars taken out of each check, just
for medical -that's why -because I'm suchlow income I am able to get the Medicaid for
the kids through Colorado state.
But they're a billion dollar corporation,so I don't see why they cannot offer a better
medical package for their associates so thatwe can afford to uh, get our families on uh,
insurance.
You start weighing, "Okay, he's sick -we eat.Which one do we do?" Well, let's give him
an aspirin.
No matter what anybody says -they're at povertylevel. I watched so many people go without
lunch in the lounges that I stopped eatingin the lounges because I just had my managers
eating there because I just couldn't standit. They just wouldn't eat, and we weren't
allowed to offer them any money. And, uh.There were people that didn't eat nothing.
They'd take an hour lunch and they'd justsit there.
We have full time employees that worked atWalmart. And they had medical. But the medical
was so high, so they had to go out and getMedi-Cal, some type of government medical.
While I was working at Walmart I was on WIC.It's an excellent program. It saved my life,
really - because we got all the formula andcereal and stuff you needed for the baby,
and I also went to the MedicAid office. Itcan be a real hassle, having to deal with
the offices, but y'know, at least they'rethere.
I'm thankful for the programs that are available,y'know. It's not a fun situation, it's demeaning.
I always heard people say, well, they're justy'know, oh, there are so many people that
just abuse the system... I can't imagine that,because there is no way I would want to spend
any length of time having to do what you haveto do to get assistance.
You talk about using the system. Look at theway Walmart is using the system. They're promoting
people to go to Healthy Kids, and to get foodstamps and section 8 housing.
They're the ones that are using the system.
Yeah, it's pretty bad when you need to tellyour employees that all these programs are
available for you, because we're not payingyou enough money.
Retail giant Walmart is encouraging its workersto go on welfare. Instead of paying for its
employees to have health benefits, she saysWalmart is making the government take care
of it.
In Florida, Walmart has more employees andfamily members eligible for Medicaid than
any other company.
Critics accuse the retail giant of using Medicaidand state programs for the poor as it's health
care plan.
This report from UC Berkeley concludes Walmartcosts state taxpayers $86 million dollars
per year, and county taxpayers as much asanother $25 million to pick up the tab for
public healthcare, income tax credits, housingsubsidies, and food stamps.
Evelyn Dee used to work full time for Walmart,but didn't have company health care benefits.
She literally couldn't afford to pay for it,so she turned to government assistance.
What the public doesn't understand is thatthose everyday low prices are based on taxpayer
subsidies. Walmart is getting away with itbecause they can.
I talked to the regional personnel managerabout who is going to take care of the Walmart
associates, and their health care needs, andhe said -let the state do it.
The personnel manager told me personally thatthere's assistance out there for people, they
should be able to go use it. Use your taxpayer'sdollars.
I had a list of all the government agenciesand different places that people could go
if they needed money for their utility bills,if they needed to apply for food stamps, or
if they needed to apply for WIC, or for MedicAid.
So your dignity is not there, your pride isnot there, you go to work knowing that you're
not going to be making enough money to reallymake ends meet, but yet you've gotta go with
a smile on your face and fake it. Yeah, that'spretty bad.
Come up with some type of health care thata full time person can afford, and don't have
to put on the scale -health care, or feedmy family.
Why is it that a corporation that in 2003had announced over 240 billion in sales cannot
provide a livable wage and affordable healthcare for their employees.
There's nowhere around that there's a companythat makes this much money and still turns
around and makes their associates go to thestate for aid.
I think my company takes family very seriously.And they'll help you achieve anything you
want. The possibilities are absolutely endlessat Walmart.
Think of the careers that get started in thiscompany and the difference it makes in people's
lives. But most importantly to me, jobs thatcome with the opportunity for personal development.
When I first started working at Walmart, Iwas still in high school, I didn't have any
plans to go to college later on. The otherpeople I was working with were just so nice,
and I just thought that was awesome.
My job function is entirely express technician.Its performing oil service, to tire changes,
battery service, stocking the inside shelves.Writing up work orders, which is greeting
the customer. Running the cash register. Y'know,ringing people out for just groceries that
they bought throughout the store. And theywant it all done at the same time.
All I'm worried about is the one 4 percentraise per year that you get from Walmart.
I've worked there three years, and I've gota $1.07 raise. I don't have good health benefits,
and I can't afford to live on my own anymore.It just -most of it is poor treatment from
management at Walmart.
I don't know, it's just weird -I've alwaysbeen kind of... quiet and shy. And now, y'know,
I kind of need to stand up for myself andmy community.
So I just y'know searched the internet fora while, and whatever I typed in brought up
the same thing, y'know, I type in EmployeeRights, and it'd bring up the Union. Fair
labor practice -it'd bring up the Union.
These corporate people in the Walmart corporation-they don't even really like to say the word
“union”. To them, it's like a curse word.They just say "third party representation"
is the way they put it.
Walmart is very opposed to unions, one ofthe most anti- if not THE most aggressively
anti-union companies in the history of theUnited States.
It's just relentless in their search for unionactivity, and try to squash it, kill it.
Look at that, Ed Dupontis. He gave you a call,right?
He gave me a call. He said he didn't wantnothing to do with the union. He says there
was no no no.
I had a worker that came to me with a pieceof paper that someone had typed up a computer
in big bold black letters that said "We needa Union!". No signatures, that's all it said.
That in itself is enough to require me asa store manager to go and make a phone call.
And the phone call comes to Dentonville, andthat afternoon I had to personally drive to
the airport and pick up three guys that flewin a corporate jet, and pick them up and take
them back to my store.
We have to do this for the reasons we startedit.
What they do is they basically walk in andtell the store manager that you're no longer
in charge of this store. Every decision goesthrough us.
They taught me how to profile people. Of course,I didn't know that was the term, then. And
it was identifying people that were the strongestrepresenters of the petition to organize,
or at least get a vote.
Anita, we need to contact, still. Possibilitythere.
You walk up to a couple of associates, andthey're both talking, they walk away from
each other -they gotta go. They're conspiringto do something.
Be noisy, be happy, be boisterous. We're hereto support folks who are trying desperately
to fight against the world's largest, richestand probably meanest corporation.
The associates in the automotive departmentwere flooded with brainwashing material against
the union.
I got fooled by a union. Fooled bad. All theunions work at is taking a cut out of my pay.
Yeah, take your money and spend it on politicalcampaigns and help people I don't even vote
for.
Because they know a union would just messit up. But don't take my word for it. Just
ask an associate working here in the building.
I'm not going to get in the store even 50feet before somebody approaches me, or they're
gonna send someone following me around thestore.
I was never alone. I was followed whereverI went. Truly, the managers would follow me.
During the process of intimidating them, theyjust make their lives miserable. They do illegal
surveillance, they put cameras up in workstations, work areas, break rooms.
You've got a target on your back and you leteverybody else know -I've got to stay away
from this person because I can get fired fortalking to this person.
They're targeting a lot of it at Josh. Y'know,they're like -cause they were talking about
Josh being like held up on their shouldersand parading him. They're like "Yeah, he's
just using it for uh, a way to get y'know,like attention."
One of their favorite tactics is to come outand say, "We have to freeze all of our raises
in the store because we can't appear to bebribing anybody.
It was a great political ploy by Walmart inmy mind, to say that's why they weren't getting
raises. Because some of those employees startedputting pressure on the TLE people -the tire
lube express people.
They said, "We can't get raises because ofYOU".
I was like so scared to go to the break room,because they made us all go to break together
because it was really dead after that, sowe'd start walking through, and they'd like...
customers and other associates were like givingus dirty looks, I'm like "I'm not going to
sit in the break room, they'll jump me orsomething!"
Alicia is way good. I've talked with her quitea bit.
And Cody, we know Cody is good.
RightCody is with us, here.
They'll instruct the managers to start hiringassociates in the store. And what they do
this for is to try to dissolve the percentagesof the people in the store that are for the
union.
See James. James is another new hire.
I'm not even sure who that is.
But you know, that's just -this is OUR store.This isn't their store. We're the ones -we're
making them money. We're the little workerants, y'know.
So what is your prediction?
Uh, right now, I'd say fifty fifty. Y'know,I mean the few people in the middle are just
going to make it or break it right now.
I think you lost Alisha.
No, I've talked with her quite a bit. She'sjust kind of hard to read type of person.
I hang out with her and stuff on the weekends,but she's definitely into it. She's real strong.
I believe it's just gonna go like - done.Because y'know, Cody isn't voting, Ryan isn't
voting yes, and I'm still kind of... I kindof really don't want to vote but then I kind
of have to, because.
You're getting all freaked out because ofy'know, what they're saying -they're not going
to know how you vote. All it's gonna be isjust a bunch of numbers.
So we've got six for no, another six yes.So we've got one, two, three, four, five,
six, seven on the fence.
The company does everything that it can andthat means ANYTHING. And they will kill it
-they'll kill the campaign.
Walmart winning out, as you said, seventeento one, but the union says-
-It's not a fair battle, it's not accordingto the National Labor Relations Act -but when
they find that there's a campaign going on,everything that can be done -fair or unfair,
legal -maybe not so legal -is done to keepthe union out.
Walmart was very lucky to acquire two reallygood companies. But of course they were already
unionized. Walmart had no choice.
Because of the union, we get thirty six daysof vacation per year. Usually people take
three weeks in the summer, three weeks inthe spring. It depends.
You can split your vacations into two or threetimes per year. Or even more often, if you
prefer.
My job is very important and if I have tofear for my job, it's a bad thing. A very
bad thing.
If Walmart says we're all a big family, andwe have nothing to hide, everything is great
-then... I don't understand why the colleaguesin America can't have a worker's council.
Can't establish a union. I can't understandthat.
Walmart is a career; it's not just a job.Good quality of life, good educational opportunities
for my children.
It is right for the 1.2 million Walmart associates,including more minorities and more seniors
than work at any other company in America.Walmart offers the right job at the right
time in their lives and it gives them a stepup that economic ladder.
My name is Edith Arama. I live here in SouthernCalifornia. I have two girls. I go to school
to be a preschool teacher. I worked for Walmartfor six years. They explained to me the different
things they offered and the type of companyWalmart was. I said that's a company I want
to work for. I always found it rewarding tome to help the customer find what they were
looking for. I could work wonders.
Do more with less. I know the true meaningof doing more with less. They want the associates
to do more and they are going to pay themless.
They would come in the office or on the floorit didn't matter where you were working. They
would say you know we have no overtime thereis to be no