A Debate: Does Wal-Mart Work or is it a High Cost for Low Price?

On Thursday, more than 120 workers were arrested in a raid by Immigration and Customs Enforcement agents in Butler Township Pennsylvania.

The raid took place at the construction site of a million-square-foot Wal-Mart distribution center.

Wal-Mart has blamed a subcontractor for hiring the undocumented workers.

But critics of Wal-Mart - the world's largest retailer - say this is standard fare for a company that tries to cut corners in order to lower its costs and expand its profit.

Paul Blank, campaign director of WakeUpWalMart.com said "They're trying to improve their public image ... but they're undermining their own attempts. There's clearly a pattern where they're violating the law."

In March Wal-Mart agreed to pay an $11 million settlement after immigration agents raided 60 stores and arrested 245 individuals working illegally.

Last month the New York Times obtained an internal Wal-Mart memo that proposed the company curtail spending on employee benefits while minimizing damage to its public image. The Times reports the recommendations include hiring more part-time workers, reducing retirement contributions and discouraging unhealthy people from applying for positions. The memo also acknowledged the company is already in a delicate position because 46 percent of the children of Wal-Mart employees are uninsured on or Medicaid.

Wal-Mart's labor practices are also criticized in a new documentary released this month titled "Wal-Mart: The High Cost of Low Price" by Robert Greenwald.

To combat this wave of negative publicity, The New York Times reports Wal-Mart has set up a public relations war room staffed with former Republican and Democratic presidential advisers. The Times writes "When small-business owners or union officials... criticize the company, the war room swings into action with press releases, phone calls to reporters and instant Web postings."

The Times reports the war room was set up as part of a larger Wal-Mart effort to portray itself as more worker-friendly and environmentally conscious company.

We host a debate over Wal-Mart and air excerpts from the Robert Greenwald film as well as the documentary "Why Wal-Mart Works: And Why That Makes Some People Crazy" by filmmaker Ron Galloway.

* "Why Wal-Mart Works: And Why That Makes Some People Crazy" - excerpt of documentary by Ron Galloway.
* "Wal-Mart: The High Cost of Low Price" - excerpt of documentary by Robert Greenwald
* Tracy Sefl, communications director, Wal-Mart Watch.
* Ron Galloway, documentary filmmaker. Producer and Co-director, "Why Wal-Mart Works and Why That Drives Some People Crazy."

LISTEN ONLINE:
http://www.democracynow.org/article.pl?sid=05/11/18/1535212