How has Wal-Mart handled the tight labor market?
The tight labor market is causing expenses to increase. In addition, Wal-Mart has had problems on the labor front with the recent vote in Jacksonville, Texas, to unionize the meat department. A greater movement to unionize would most likely lead to further increases in labor costs. Of course, only handful of people voted in the movement to unionize. The company claims that had the whole store been allowed to vote, the result would have been different. Wal-Mart has fought this movement hard, and there could be public backlash against one of America’s most admired companies if it is perceived as not providing the best conditions for its workers. Somewhere, there exists a balance between the needs of employees and the ability of the firm to compete. That balance needs to be found before things spin out of control. Q: I thought I saw Sam Walton as a greeter at my local Wal-Mart last week. Am I nuts? A: Umyeah, you probably are.
