Watched "Walmart, The Cost of Low Prices"

RawAlex · 2006-02-23, 11:53 PM

Lenny, you might want to read this:

http://www.wsws.org/articles/2005/ma...gmpr-m18.shtml

In the case of GM, $1800 out of every car sold goes to paying those costs.

Most people don't realize, but when GM or a Ford closes a plant, they are often stuck paying upwards to 80% of the salary costs anyway for years to come. There is very little flexibility in the process.

GM's sales and market share have dropped massively in the last 30 years, but they are still supporting the retirement benefits and (rapidly increasing) medical costs. Just last year, they have moved from 5.2 to 5.8 BILLION dollars. That change alone would cover 25% of the losses last year. Those costs continue to spiral and they are not going to go away until GM goes bankrupt, which is a solid possiblity.

Walmart would be non-functional with $15/hour stockboys and $20/hour fork lift drivers, especially if there were shop rules and legacy retirement costs to cover in the future. The impact at the cash register would kill (see K-mart).

Pindilly, I don't think anyone here is suggesting Walmart is a good career choice. Your experience with a tough work situation combined with (often over done) right to work laws means that it sucks ass. However, the truth is there, 10-12 new people come in every week to take a swing at it. That says enough.

Alex

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2006-02-23, 11:53 PM	#37
RawAlex Took the hint. Join Date: Mar 2003 Posts: 5,597	Lenny, you might want to read this: http://www.wsws.org/articles/2005/ma...gmpr-m18.shtml In the case of GM, $1800 out of every car sold goes to paying those costs. Most people don't realize, but when GM or a Ford closes a plant, they are often stuck paying upwards to 80% of the salary costs anyway for years to come. There is very little flexibility in the process. GM's sales and market share have dropped massively in the last 30 years, but they are still supporting the retirement benefits and (rapidly increasing) medical costs. Just last year, they have moved from 5.2 to 5.8 BILLION dollars. That change alone would cover 25% of the losses last year. Those costs continue to spiral and they are not going to go away until GM goes bankrupt, which is a solid possiblity. Walmart would be non-functional with $15/hour stockboys and $20/hour fork lift drivers, especially if there were shop rules and legacy retirement costs to cover in the future. The impact at the cash register would kill (see K-mart). Pindilly, I don't think anyone here is suggesting Walmart is a good career choice. Your experience with a tough work situation combined with (often over done) right to work laws means that it sucks ass. However, the truth is there, 10-12 new people come in every week to take a swing at it. That says enough. Alex