NEW YORK—With unemployment reaching double digits in some parts of New York City, the job opportunities offered by retail giant Wal-Mart appeal to many citizens. However, with the company’s notoriously bad treatment of employees—including reports of discrimination, wage theft, and locking employees in the store to finish work off the clock—the City Council is not sure New York wants the kind of jobs Wal-Mart has to offer.
Wal-Mart says the company has changed. It paid out more than $600 million in 2008 to settle 63 cases across 43 states; class-action lawsuits are still pending.
“Many of these lawsuits were filed years ago and the allegations are not representative of the company we are today,” said Steve Restivo, spokesman for Wal-Mart.
The council met to discuss the “when Wal-Mart comes to town” scenario for the second time this month. After an extensive overview that lasted about five hours on Feb. 3, the council convened again on Thursday to focus on the issue of the company’s labor practices. Wal-Mart declined to participate in both hearings.
Whatever speculation the council engages in, Restivo maintained, “We don’t have a store or an announced project in New York City.”
A letter that Wal-Mart’s community affairs representative Philip H. Serghini sent to the council further explained the company’s absence. “While we are proud of our track record on this topic, we respectfully decline participation in the February 17 hearing. Our position remains that the council should first conduct a comprehensive review of existing businesses in the city before embarking on a theoretical exercise,” stated the letter.
While Wal-Mart points to other big-box stores already operating in the city, the council claims that Wal-Mart is in a league of its own in terms of both scale and labor practices.
“Our stores are, on average, the same size as some of the large retailers in the city today,” noted Restivo. He argued that “the business models and merchandise offerings are relatively the same, [except] our prices are traditionally better and our wages and benefits are better.”
Wal-Mart reports that its average wage for full-time employees is $13.09 per hour. Health benefits are available for $11 per pay period for single employees and for $33 per pay period for employees with dependents.
Wal-Mart says the company has changed. It paid out more than $600 million in 2008 to settle 63 cases across 43 states; class-action lawsuits are still pending.
“Many of these lawsuits were filed years ago and the allegations are not representative of the company we are today,” said Steve Restivo, spokesman for Wal-Mart.
The council met to discuss the “when Wal-Mart comes to town” scenario for the second time this month. After an extensive overview that lasted about five hours on Feb. 3, the council convened again on Thursday to focus on the issue of the company’s labor practices. Wal-Mart declined to participate in both hearings.
Whatever speculation the council engages in, Restivo maintained, “We don’t have a store or an announced project in New York City.”
A letter that Wal-Mart’s community affairs representative Philip H. Serghini sent to the council further explained the company’s absence. “While we are proud of our track record on this topic, we respectfully decline participation in the February 17 hearing. Our position remains that the council should first conduct a comprehensive review of existing businesses in the city before embarking on a theoretical exercise,” stated the letter.
While Wal-Mart points to other big-box stores already operating in the city, the council claims that Wal-Mart is in a league of its own in terms of both scale and labor practices.
“Our stores are, on average, the same size as some of the large retailers in the city today,” noted Restivo. He argued that “the business models and merchandise offerings are relatively the same, [except] our prices are traditionally better and our wages and benefits are better.”
Wal-Mart reports that its average wage for full-time employees is $13.09 per hour. Health benefits are available for $11 per pay period for single employees and for $33 per pay period for employees with dependents.
