Wednesday, October 26, 2005

Wal-Mart Urges Congress to Raise Minimum Wage

In a speech to Wal-Mart directors and executives, Mr. Scott unveiled a series of initiatives designed to present a kinder, gentler face for the world's biggest retailer, which has come under stepped-up criticism for everything from its wages and benefits to its impact on small businesses.
Mr. Scott also discussed a new health-care package with lower premiums for Wal-Mart workers, and he touted the retailer's efforts to cut pollution.
Whether it is jobs, health care, product sourcing or environmental impact, "it is clear to me that in order to build a 21st century company, we need to view these same issues in a different light," Mr. Scott said in his speech yesterday. He added that he has spent the better part of last year exploring ways to use the company's heft and resources to have a more positive impact on society.
The proposal to lift minimum wage is particularly likely to raise eyebrows. Though Wal-Mart pays above the current $5.15 an hour minimum wage -- the average hourly wage among its 1.3 million U.S. workers is just under $10 an hour -- some of its smaller competitors don't pay as much. As a result, a boost in the minimum wage could pressure the profitability of Wal-Mart competitors.

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