HOLD. No company, ever, anywhere in the world which has been Unionized has been able to succeed long term. Long term as used here means 30 years plus. The union will squeeze the life out of WMT and the only way they ever leave is when the employer goes belly up. Best bet, hold for now, there will be a few years of growth and continued profits while the Union tightens its hold. Sell when everyone thinks it is a buy and don't look back.
Yes its not in the US but this agreement shows a lack of understanding on WMT managements part concerning the nature and result of Unions.
Published: June 29, 2006
LONDON Wal-Mart's British arm, ASDA, which accounts for a tenth of the American retailer's total sales, narrowly averted a costly strike Thursday, after working out an agreement with a local union. The deal was seen as a sign that the company is softening toward organized labor.
The agreement is "exactly what the union demanded," said Jan Furstenborg, the commercial director of Union Network International, a global group with 900 union members that has been pushing Wal-Mart to negotiate with unions. "This means the company must begin to realize that they can't ignore the will of their employees to join and be represented by trade unions," Furstenborg said.
Employees at ASDA's distribution centers were threatening a five-day strike during what is expected to be one of the busiest shopping weekends of the year. England plays Portugal in the World Cup on Saturday, and ASDA estimates it will sell 10 million bottles of beer on Friday afternoon and Saturday morning in preparation for the game.
Unions will have input on issues from wages to technology used in the centers, and unions will be able to recruit new members on the job.
Next, the union plans to turn to employees in ASDA's retail stores, and hopes to establish a national collective bargaining agreement there.
"This is a very different ethos and approach" than Wal-Mart has in the United States, said Paul Kenny, the acting general secretary of the GMB, the union that did the negotiating.
The agreement represents a shift in ASDA's approach to unions, he said. "There had been a philosophy of excluding employees from meaningful discussions about the basics," Kenny said. "The company has realized that the system needs to change."
>Subj: Re: I no longer see Wal-Mart as a long t
Date: 06/30/06 10:36 pm
Unionized Walmart's could be a way for the corporation to reinvent itself and win more middle class customers who won't set foot in the Store because of it's sweat shop business model.
>> No. The only possible way a Union can deliver on its promise to workers is to provide a productivity advantage to Union employers and the Unions are not even trying to do this
No matter how much business Wal-Mart might do, in the end, Unions will demand and receive wages and benefits which will destroy their working capital and share value.
Moreover, non union stores with more productive, lower paid, workers with higher reward incentives will eat Wal-Marts lunch.
Also Wal-Mart would no longer be allow to use labor saving technologies. (see below)
The United labor fracas raises the question of whether unions have so outserved their usefulness that they are now doing more harm than good for American workers. The unions are already losing hundreds of thousands of members every year, and their recent behavior suggests that labor bosses are intent on accelerating their own demise.
Consider, for example, the narrowly averted New York Transit strike, in which the union was demanding massive pay increases from an all-but-bankrupt municipal agency. New York City is facing its worst fiscal crisis since the late 1970s (when President Ford allegedly told the city to "drop dead"). Yet the comatose transit union, whose workers already receive about 30 to 40 percent more compensation than comparably skilled private sector workers, demanded even more concessions from the city. Lord knows where the money was supposed to come from.
Then there is the headline-grabbing case of the dockworker strike on the West Coast this past October. The dockworkers, who with overtime can earn six-figure salaries, were essentially striking against the evils of technological progress. The union's beef was with the decision to automate the tabulation of containers moving in and out of ports. This would be the economic equivalent of the accounting profession trying to block the introduction of calculators.
"I'm not talking about Star Wars," one industry executive pleaded. "I'm talking about everyday technology. Think supermarket scanners. FedEx or UPS tracking systems. Simple information management." Said another: "The top ports in Asia, and in Europe, are at least a decade ahead of us. Our ports literally cannot keep up." http://www.cato.org/dailys/01-12-03.html
GM, United Airlines, Ford, U.S. Steel, U.S. Air, Delphi, LTV, American Can, all know the result of Unions.
Guess they finally wore them out... too bad in a way - yeah. But also good. As a Teamster for 30 years now - grocery DC forklift operator - I would have to agree the union bosses get in bed too cozy with management, etc. Having the unions "out there" helps many companies without them at all [unions] behave. We'll see how this all plays out - and it will be good for my employer - SuperValu, and others to see this development --- however I'm just not sure how it will all play out -- or the national health we soon shall see
Interesting use of words calling the competition between FDX and UPS "not an even playing field". There's another poster on here that uses that argument a lot. Is that you quadbypass?
Aye quadbypass you do get around.I see your on the fdx board to.
There is a whole lot about business that Brian will never understand. You know he failed in a two Pizza business where he called himself a "CEO". He has some kind of illusions about being and inventor of things no one needs. And he got booted as a pencil buyer at a junior college. Now he is married, maybe she is "keeping" him as he isn't likely to make a living for the two of them.
There are several legal restriction on employers. They can't refuse to hire blacks, they can't refuse to hire women, they can't refuse to hire because of religion, etc. So you see the right of association is already limited and rightfully so.
If you had invested $1,650 in WMT in 1970 for 100 shares... That investment today would be worth - - -204,800 X todays price =
Not counting dividends..