Wal-Mart minimum wage appeal shrouds naked self-interest

'Mr. Scott is essentially asking Congress to strengthen (his) competition advantage.' - Wall Street Journal

Bentonville, Arkansas - When a company like Wal-Mart calls for an increase in the minimum wage, all the warning lights flash at once.

It's a message that can't possibly be true, i.e. that Wal-Mart cares about the plight of downtrodden workers.

Thus, not even The Wall Street Journal, the bible of American capitalism, took Wal-Mart president Lee Scott seriously when he rolled out his hollow rhetoric on behalf of exploited workers last week, saying that it's time to boost the U.S. $5.15 ($6 Cdn) minimum wage.

In reality, it was just part of a new PR offensive by the world's largest retailer to refurbish its tattered global image.

Thus, the Journal, in the first line of an editorial, nailed Scott for glibly attempting to "make nice with detractors."

On closer examination, his remarks were even less sincere than that. In fact, his statement was no more than a cunning attempt by Wal-Mart to boost its $10-billion profit level (2004 figures) even further by under-cutting smaller retail rivals.

Although Wal-Mart wages are abysmally low, they average just enough above the minimum wage to remain untouched if a small increase in the minimum wage (and it is always small) is approved by American legislators.

Therefore, "Calling for an increase in the minimum wage amounts to Wal-Mart calling for a hike in the labour costs of its smaller rivals, not to mention any potential start-ups," the Journal wrote.

"Mr. Scott is essentially asking Congress to strengthen (his) competition advantage."

That about sums it up. (With friends like the Wall Street Journal, Wal-Mart would do well to consider the growing list of enemies it is making.) NUPGE

Web posted by NUPGE: 30 October 2005

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