Yesterday’s
New York Times had a good
article about efforts by union leaders, lawmakers and community groups to pressure Wal-Mart to increase the wages and benefits it pays its 1.3 million employees. Wal-Mart’s average hourly wage is $9.68 an hour. To put that in perspective, for all retail workers the average hourly pay is $12.28; for workers at Costco, it’s $16.00. In addition, Costco provides 82% of its employees with health insurance whereas Wal-Mart only provides it for 48% of its workforce.
The article, though, contained this little piece of historical revisionism:
Wal-Mart critics often note that corporations like Ford and GM led a race to the top, providing high wages and generous benefits that other companies emulated.
“Henry Ford made sure he paid his workers enough so that they could afford to buy his cars,” said William McDonough, executive vice president of the United Food and Commercial Workers union. “Wal-Mart is doing the polar opposite of Henry Ford.”
What nonsense. The only reason that Ford and GM paid good wages was because the workers at their factories formed unions and demanded them.
Here. Ford and GM didn’t “lead” a race to the top; they were dragged there kicking and screaming by the UAW. And an executive vice president of a labor union should know that. The
NYT article makes it sound as if the companies acted out of the goodness of their hearts. They didn’t. And they still don’t today. Companies don’t have hearts. In fact, according to George Whalin, president of Retail Management Consultants, here’s what companies do (and don’t) have:
“Wal-Mart has a responsibility to serve their customers – to give them a good product – and to their shareholders. They don’t have a responsibility to society to pay a higher wage than the law says you have to pay.”
Well said. Whalin, though, is not entirely right. Companies have no responsibility to serve customers, let alone give them a good product. Their only responsibility is to their shareholders – shareholders who, frankly, would rather have bad products with high returns than good products with low ones.
It’s very important for working people not to be seduced by the kind of paternalistic garbage expressed by some of the quotes above. There never was a golden age of employers guided by enlightened self-interest. We working people have had to fight for every benefit and advantage we now possess (insurance, pensions, weekends, etc.) And the Henry Fords of the world have fought against us every step of the way. Not surprisingly, this history (so violent, yet so instructive) has been assiduously left out of the textbooks. Instead, we were told that yeah, sure, there were some problems, but they were solved when Big Benevolent Daddy (Henry Ford, FDR, Teddy Roosevelt, etc.) came on the scene and set things right. Left out of the story is the fact that it was the collective action of millions of common people (the Populist movement, labor unions, suffragettes, etc.) that forced change on a reluctant society.
And it’s the same in this case. Earnest appeals to their better nature will never persuade Wal-Mart to pay their employees more. Only through legislation, unionization or some combination of both will they do so. Going hat in hand to an employer and hoping for benevolence (“Please, sir, can I have some more?”) is a doomed strategy.