Walmart vs. DC: They’d Rather Pull Out Than Pay Living Wage

In recent years, cities have stood up to Walmart on the matter of their onerous cheap labor practices. New York did a couple years back, and now so has the nation’s capitol:

When Walmart announced in late 2010 that it was planning to open stores in the District, two schools of thought quickly defined the ensuing debate. There were the unions and activists, who said Walmart pays exploitative wages and undercuts local businesses. And there was Walmart, which said, essentially, no, we don’t.

This week should have been Walmart’s chance to prove it was right. On Wednesday, the D.C. Council approved the Large Retailer Accountability Act of 2013 on a second vote, following its initial vote in favor of the bill last month and setting it up for the mayor’s signature or veto. If it becomes law, it will require all large retailers in D.C—those with more than 75,000 square feet and parent companies that gross at least $1 billion per year, with an exemption for companies with collective bargaining agreements—to pay a “living wage” of $12.50 an hour. Walmart, it goes without saying, meets the criteria.

Walmart could have responded by grinning and bearing it, and conceding that while it didn’t like the bill, it can indeed afford to pay a decent wage, as it’s long insisted it does. Instead, the company announced Tuesday that if the living wage bill is enacted, Walmart will cancel plans for three of its six D.C. stores and reconsider its options for the other three, which are already under construction. …

Hours after Walmart issued its threat, [DC Mayor Vince] Gray responded with a statement hinting at a possible veto. “The cancellation of three planned stores will surely set us back,” he said. “I strongly urge the Council to consider whether this legislation will actually promote strong economic development in the District and expand job opportunities for District residents.”

Political considerations aside, the wage issue remains. If Walmart succeeds in getting Gray to veto the bill, it will have scored a victory without having to close any stores. But if the bill passes and Walmart halves its D.C. presence, it’s essentially admitting that its business model doesn’t allow it to pay a meager living wage.

By: jybarz