DeLauro Calls Wal-Mart Memo ‘Smoking Gun'

DeLauro Calls Wal-Mart Memo ‘Smoking Gun'

- Reveals Retailer's Hostile, Anti-Worker Employee Benefits Strategy -

WASHINGTON, D.C. - Congresswoman Rosa L. DeLauro (Conn.-3) today said an internal memo from Wal-Mart Executive Vice President for Benefits M. Susan Chambers to board members was "the smoking gun," revealing the retailer's employee benefits strategy to be both hostile and anti-worker. The document, reported on today by The New York Times, cites Chambers' recommendations to cut 401(k) contributions and encourage younger, healthier workers. The memo acknowledges that "Wal-Mart has a significant percentage of associates and their children on public assistance" and confirmed that "critics are correct in some of their observations" about Wal-Mart's health benefits.

"This memo is striking - the smoking gun confirming what we have been saying for months about Wal-Mart's anti-worker employee benefits strategy. These concerns were central to a public education campaign waged by myself and others to familiarize a public that knows Wal-Mart the Retailer with the practices of Wal-Mart the Employer.

"Wal-Mart pays wages so far below the poverty line, its employees rely on welfare assistance to feed their families. My state of Connecticut alone pays more than $5 million a year for the health care of Wal-Mart's employees through Medicaid. And this company is currently being sued for gender discrimination in promotion and pay, in what is the largest class action lawsuit in United States history

"This company, the largest employer in the country, is the most influential corporation in the world right now and must be a responsible corporate citizen. For that reason, the public education campaign about the practices of Wal-Mart the Employer must continue."

http://www.house.gov/delauro/press/2005/October/walmart_memo_10_26_05.html