Is Walmart admitting failure?

[DVS LT1]

Originally Posted by RSX-S777

the company can certainly afford to pay them more- but we all know they won't.

That would definitely seem to be the case. Their big competitor Costco, although a bit different in terms of products available, pays excellent wages. My girlfriend has worked part time at Costco for 4+ years and she hit top wage in like 2 years - she makes about $22/hr working on cash, in the vault, or the cigarette cage- more money per hr still being a student than I currently make in my career following University and post-degree College. She says its no wonder older and less educated people stay there, or even younger people who become "for-lifers" - its because they can actually achieve a $45+k salary in just a few years, for doing practically nothing.

The fact that Walmart pays poor or unfair wages (compared to profit) just goes along with their bottom-line ideology of lowest prices & costs. I'd be interested to learn what their executive and managerial salaries are like, because the fact that this company is doing extremely well and making these policies work says that they have good management. Now are they the ones getting rewarded or simply being scared shitless by the guy on top? (mr. walmart) Then again, if they were good why would they stay or fear leaving...

[fredjacksonsan]

I've got a friend who is a manager of a WalMart store. Stores vary depending on how much business they get, but he's in a small store, gets a salary of about 45K with potential to make 80-100K bonus each year depending on incentives. He put up with the terrible pay for several years while making his way to management. I've talked to him about the low wages; the area he works in is quite rural, and his position is that they (WalMart) are bringing jobs to where there were none before. This may be a valid point way out in the middle of nowhere, but not in the big city.

The cheap labor force that's mentioned in several posts is a keystone of many businesses, including fast food. McDonald's, Burger King, and all the rest employ teens or anyone else that will work for low salary. Their goal is to have a zero-training environment where they can plug in the next low wage earner with a minumum or complete lack of training. Turnover is actually good for these businesses, as they don't allow word of mouth spread of unionization. McD's in specific has closed hundreds of stores where organized labor began to appear. They've closed stores, fired everyone there, and opened new stores a couple blocks away and hired all new staff.

I think that WalMart's Canadian situation may be a test to see if it's cheaper to close a store and fire the employees or have a union in place.

[DVS LT1]

You're right about others doing it too - "high turnover" believe it or not is actually a strategy for some businesses...

[fredjacksonsan]

Yes; why keep someone on for more than 6 months so they can get a raise and can start their benefits? Make it so miserable that they'll quit the job, there's another person behind them that will take minumum wage.

[Flatrater]

So you guys would rather pay higher prices so the unskilled employees who stock shelves for a living could make more money an hour.

There is no skill in taking a can out of a box and putting it on the shelf. Its not like they even have to put the price on the can. The job doesn't merit 10 dollars a hour.

Increasing employee salaries increases overhead of the store and they would be forced to raise prices which is against the business model that Walmart likes to have.

BTW I have a friend that works in Walmart in my town he makes 9 dollars a hour, has stock options, medical benifits all to put an item on a shelf in the auto department. Not bad for unskilled work. At my job we just hired a new mechanic out of trade school which costs 13K and he needed 3K worth of tools to do his job and he makes 10 dollars a hour.

[RSX-S777]

I agree with you Naki- but welcome to the disgusting realm of American business as many companies see it. There's a reason for that thread on ethical business practices/investment in this section. Turnover is abominable, the stores may be rancid, but as long as the company is turning a huge profit, which it is, it hardly matters. I certainly don't think it's an ethical, responsible or efficient way to do business. Hell, the employees at my local Walmart are rude, unhelpful and look like they recently emerged from a dumpster. Obviously they are not an "investment", but a hastily trained set of empty heads with the slight ability to grudgingly perform a set of repetetive, menial tasks. Many will find these employees and the condition of the stores appalling- some won't care. Obviously, the company isn't struggling- so I suppose it's clear where the majority stands. Perhaps at a certain point the company will have to re-evaluate, proritize and restructure- but for now it's profit, greed and exploitation. It seems to be a common trend in this country. It's really too bad, because we could easily be better than we are.

The smartest person I know is a voracious independent learner, eloquent speaker, thinker and writer who never earned his degree. Unfortunately, companies don't have the time, patience or ability to evaluate on a deep personal level. That piece of paper is powerful, albeit meaningless in many cases.

[Heep]

Gotta love how all the Waltons are near the top of the World's Richest lists...

[taranaki]

Originally Posted by Flatrater

So you guys would rather pay higher prices so the unskilled employees who stock shelves for a living could make more money an hour.

There is no skill in taking a can out of a box and putting it on the shelf. Its not like they even have to put the price on the can. The job doesn't merit 10 dollars a hour.

At my job we just hired a new mechanic out of trade school which costs 13K and he needed 3K worth of tools to do his job and he makes 10 dollars a hour.

First assumption is wrong, as is the second.A few years back, I did a spell in the grocery industry in a university town.There is skill in anything if you can refine it to its simplest form.I had a crew of about 30 people filling shelves for me, they worked from 8pm to midnight and fell into two distinct groups.There were the lumpy housewives, whoseonly motivation was the pitiful money that they got from stacking the shelves, and the varsity students, who were hired to muscle the cartons from the back store into the aisles.Because we needed that job done quickly, we made it a 'job and finish' arrangement.It was educational to watch the guys tearing around, working up a sweat but still considering their every move to get the job done as quickly and effectively as possible while the dullards just plodded along, watching the clock and gas bagging to each other.The guys got paid 4 hours, but seldom worked more than two. In terms of real pay, they were earning more per hour than I was to supervise them.Didn't cost the company a cent extra in wages, but if they'd cut the rate and insisted that the job be done in two hours, only idiots would apply for it.There's no skill in donkey work, but with the right incentives, it can be done far more efficiently.

As to your mechanic, your boss ought to be ashamed of himself.But then the mechanic deserves crap money if he's willing to invest 16k just to get a foot in the door.

[Flatrater]

Originally Posted by taranaki

First assumption is wrong, as is the second.A few years back, I did a spell in the grocery industry in a university town.There is skill in anything if you can refine it to its simplest form.I had a crew of about 30 people filling shelves for me, they worked from 8pm to midnight and fell into two distinct groups.There were the lumpy housewives, whoseonly motivation was the pitiful money that they got from stacking the shelves, and the varsity students, who were hired to muscle the cartons from the back store into the aisles.Because we needed that job done quickly, we made it a 'job and finish' arrangement.It was educational to watch the guys tearing around, working up a sweat but still considering their every move to get the job done as quickly and effectively as possible while the dullards just plodded along, watching the clock and gas bagging to each other.The guys got paid 4 hours, but seldom worked more than two. In terms of real pay, they were earning more per hour than I was to supervise them.Didn't cost the company a cent extra in wages, but if they'd cut the rate and insisted that the job be done in two hours, only idiots would apply for it.There's no skill in donkey work, but with the right incentives, it can be done far more efficiently.

As to your mechanic, your boss ought to be ashamed of himself.But then the mechanic deserves crap money if he's willing to invest 16k just to get a foot in the door.

I also several years back spent 3 years working in a grocery store stocking shelves. So I know the skill level needed to do the job. Any trained monkey could do the job. Back when I did the job I had to put the price on the cans no fancy scanner.

I think its great what you did letting the guys go home early, that's a nice gesture on your part. But you still didn't increase their base pay. The got the same pay per hour if they stayed 4 hours or 2 hours. All you did was give them an incentive to bust ass and get the job done. No problem with that since that is how I earn my living now. The faster I do my job the more money I make. Speed is the object quality doesn't factor into it.

As for the mechanic we hired that is the going rate of pay in my area. You can get several jobs for the same pay around here. We mechanics do the job we do because we enjoy doing it, that is our reward. Now our incentives make the job worthwhile when we are busy. I can double my weekly paycheck without working any extra hours.

[2strokebloke]

Originally Posted by Flatrater

There is no skill in taking a can out of a box and putting it on the shelf. Its not like they even have to put the price on the can. The job doesn't merit 10 dollars a hour.

You'd be surprised how hard it can be. Considering how many people don't put items back where they belong, or simply make a mess. Understanding the inventory and ordering systems takes while to get used to - pushing around 900lbs. worth of merchandise isn't easy either.
Been there, done that, it's not worth $10.00 but it's certainly hard enough to warrant higher than minimum wage (and most places do pay higher than minimum for these services).
The worst part was having stupid customers ask the stupidest questions.
I would think it'd be very funny though, if the union in Canada was making outrageous demands - such as maybe having a swimming pool, and giving every employee a motorized scooter for use in the store.