Op-Ed by John Buell
Portland Press Herald, June 26, 2014
SOUTHWEST HARBOR — ... Economists like to explain changes in salaries for baseball players, corporate CEOs and hedge fund managers by citing and validating “market forces” and supply and demand. ...
Wal-Mart wages are determined by supply and demand, but once again the question is who is shaping and gaining leverage in this market. Wal-Mart has its own version of the reserve clause. Through an aggressive competitive strategy, it has cornered the retail market – especially in many rural communities. Thus, it limits options in the labor market.
Holly Sklar, director of the advocacy group Business for a Fair Minimum Wage, comments: “Wal-Mart pays workers less now than when Sam Walton started the company in 1962. The average wage for Wal-Mart sales associates – $8.81 an hour according to IBIS World industry research – is lower than the 1962 minimum wage of $8.91, adjusted for inflation.”
In similar fashion, the chain squeezes its other suppliers. And just as baseball teams move at will, Wal-Mart thinks nothing of relocating or closing any of its stores when union organization or higher-wage ordinances are threatened.
Finally, Wal-Mart, just like Major League Baseball, is subsidized. Sklar comments: “The Walton heirs . . . have a combined net worth of $136 billion. Wal-Mart workers top the state lists of employees depending on the public safety net.” ...