WMT - Anti-Labor Company is Chinese Dumping Ground
Wal-Mart Fights Criticism From Labor
Tuesday April 5, 5:15 pm ET
By Anne D'Innocenzio, AP Business Writer
Wal-Mart Defends Practices, Fights Criticism From Labor and Rivals at First Media Conference
ROGERS, Ark. (AP) -- Wal-Mart is "good for America" and the barrage of criticism against the company is an effort to protect the status quo in retailing, President and CEO Lee Scott said Tuesday in a sharp attack on organized labor and retail rivals.
Addressing about 50 journalists gathered at the company's media conference -- it first ever media event -- Scott defended its wages and health care plans, criticized by labor groups as inadequate, and said that the company is able to save customers big money as it drives costs out of its system.
"Innovation and competition tends to change the status quo," said Scott, speaking at a hotel in Rogers, a few miles from Wal-Mart Stores Inc.'s Bentonville headquarters.
With slow sales and a stock price that has languished, company officials used the two-day event to offer their perspective on Wal-Mart's financial picture and said they will expand sales by making the company "an even better place to work," as it improves its efforts in such areas as diversity.
Wal-Mart officials also plan to improve the shopping experience by offering more fashionable apparel and trendier storage containers. It also vowed to be more offensive in its public relations tactics and to be more aggressive in price cuts.
The conference comes as controversy surrounding the world's largest retailer seems to have reached a crescendo. Wal-Mart has long been criticized by community leaders, religious groups, and environmental activists for taking advantage of its workers and hampering competition, but recently it has had to face very public legal problems.
Wal-Mart recently announced it was paying a fine to settle federal charges that underage workers operated dangerous machinery, and agreeing to pay $11 million to settle charges that its cleaning contractors used illegal immigrants.
Meanwhile, the company is appealing a judge's decision to certify class action status for up to 1.6 million female employees who claim Wal-Mart discriminated against them because of their gender.
And it also faces very vocal opposition to some new store openings in areas such as Los Angeles and Chicago.
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