Wal-Mart, Driving Workers and Supermarkets Crazy

NYTIMES ^ | 10-19-03 | STEVEN GREENHOUSE

[Pikamax]

October 19, 2003 Wal-Mart, Driving Workers and Supermarkets Crazy By STEVEN GREENHOUSE

n February Wal-Mart will open its first grocery supercenter in California, offering everything from tires to prime meats, and that could be a blessing for middle-class consumers. The reason is simple: Wal-Mart's prices are 14 percent lower than its competitors', according to a study by the investment bank UBS Warburg.

But not everyone is rejoicing about Wal-Mart's five-year plan to open 40 supercenters in California, stores combining general merchandise and groceries that are expected to gobble up $3.2 billion in sales. California's three largest supermarket chains, Ralphs, Vons and Albertsons, are scared, and so are tens of thousands of supermarket workers whose union contracts have put them solidly in the middle class. The three grocers' fears of fierce competition from Wal-Mart and their related drive to cut costs are widely seen as the main reason behind the week-old strike by 70,000 workers at 859 supermarkets in Southern California.

Wal-Mart has already helped push more than two dozen national supermarket chains into bankruptcy over the past decade. That list includes names like Grand Union; Bruno's, once Alabama's largest supermarket chain; and Homeland Stores, formerly Oklahoma's largest. And unionized supermarket workers fear that Wal-Mart's invasion will oust them from the middle class by pulling down their wages and benefits, which, taken together, are more than 50 percent higher than those of Wal-Mart workers. At Wal-Mart, the average wage is about $8.50 an hour, compared with $13 at unionized supermarkets.

"Wal-Mart's superstores are going to have a devastating impact on California's supermarkets," said Burt Flickinger III, a retailing consultant, noting that union wages and prices are higher in California than in most of the country.

[longtermmemmory]

To borrow from the stalone film "Demolition Man"

All supermakets became walmart...

[A CA Guy]

Gelsons will sure make sure you pay high 7-11 type prices for groceries, I agree.

[oceanview]

not familiar with that chain, we have Wegman's on the east coast, and Fairway in NY. I don't mess around with food, I don't want cost cutting on food, food handling, and preparation. I don't want some transient making $8/hr touching my chickens, my steaks, my cold cuts.

[oceanview]

how do you know? are you testing the food? just because the displays "look clean" doesn't mean much. what kind of lifestyle do you think the walmart worker making $8/hr has at home? he's bringing that life to work, touching my cold cuts, grinding my chop meat. no way.

[ambrose]

You pay higher prices at Gelsons, but are never confronted with picking up a can that has some sticky ooooze all over it.

[ambrose]

don't eat meat.

[oceanview]

case in point, why do you many people on cruises get the Norwalk virus? Answer: the cruise lines now have all third worlders making up the crews, especially the food handlers.

[Rebelbase]

"Ironically, Gelsons may be the big winner from a big Wal-Mart move. Upper income people will still want to have a decent place to shop, and will pay a premium to do so."

The high end grocers here are unaffected by the Walmart and Kmart super centers.

[oceanview]

if they want to skimp on the salaries for baggers and checkout people, that's one thing. but the butchers, the cold cuts guys, I want them to be well paid, stable, clean people.

[A CA Guy]

Agreed.

In California, on average 40% of our population were not born citizens of the USA, so we are in that danger no matter where they work in this state.

There are health codes and Wal mart has to follow them like anything else so there is no real validity to your worry.

[A CA Guy]

I never did anywhere else either except for the occasional soda bottle.

[ambrose]

I believe that Wal-Mart only sells pre-cut meat.

[txhurl]

Fear ye not. SuperTargets will bury Wal-Mart.

[oceanview]

walmart will figure out some way to raise cattle in china, I know it.

[UB355]

I live in an area that has had Walmart stores move into. The net effect is that the Food Stores that were unionized are disappearing. The others are surviving.

[A CA Guy]

Maybe Mexico, but not over seas.

[oceanview]

don't tell me, does it say CUT IN CHINA on the package? please, don't even tell me, I'm gonna hurl...

[Extremely Extreme Extremist]

Another NY Slimes hit-piece.

I'm sick and tired of people cursing at Wal-Mart. Don't like it? Don't shop there. Period. But leave the people who do enjoy Wal-Mart's low prices alone.

And for those "poor" Wal-Mart workers thinking about unionizing or begging for more pay: Get some skills and find a new career, fast.

[ambrose]

dunno... never even been in a Wal-Mart, but I heard this on the radio.

[dirtydanusa]

We had a Super K-mart here. When I found a pot roast in sporting goods, I wondered if they'll throw it out or return it to it's cooler. Odds are it was returned to the meat coolers. That was the last time I shopped for groceries there. Wal*mart has since caused the K*mart and two other bigger retailers to close their stores and even bought the K*mart site to expand. There is now very little choice but to patronize Wal*marts endless Made in China supply. Most of the workers are either older people supplimenting a pension or teen agers looking for a few dollars to spend. Either way, you cannot make a living on a Wal*mart salary.