Since when do the employees run Wal-Mart?


First, a history lesson: Labor practices in the newspaper industry nearly ruined that business by the 1980s. Thanks to the unions, there was so much overstaffing at printing presses, a practice known as featherbedding, that pressmen could come and go almost at will (picture eight pressmen operating a four-man press). The New York Daily News nearly had to shut down due to such practices -- until management put their feet down and said "No more."

Next consider today's automobile industry: It has almost been destroyed by the inflexibility of labor. Legacy retirement and healthcare costs are so high that the Big Three can no longer make money in North America.

And, yesterday, Wal-Mart Stores, Inc. (NYSE:WMT) took another public relations hit by telling it's employees that they need to come to work when it snows.

Maybe it's just me, but that doesn't sound like such a tough policy -- especially for a company with virtually flat same-store sales in the U.S, a company that is struggling to get back on its feet in its home market. When people don't come to work, it hurts productivity. And someone else has to do their job. The customer experience may suffer.

Groups like union-backed WakeUpWalMart also object to the fact that employees have to call in to a toll-free number to report an absence. What would they prefer? That Wal-Mart outfit employees with carrier pigeons?

Labor organizers are going down a path that is not good for Wal-Mart's investors or its workers. The answer to less productivity in most industries is cutting the work force.

At least they won't have to call in.

Douglas McIntyre is a partner at 24/7 Wall St.

Reader Comments (Page 2 of 2)

Symbol Lookup
IndexesChangePrice
DJIA-33.4512,598.55
NASDAQ-19.722,874.04
S&P 500-5.861,324.80

Last updated: May 16, 2012: 07:30 PM

Hot Stocks

General Electric

19.00+0.60(+3.26)

Alcoa

8.49-0.22(-2.53)

Apple Inc

546.075-7.095(-1.28)

Google Inc 'A'

628.93+17.82(+2.92)

Bank of America

7.11-0.19(-2.60)

Wal-Mart Stores

59.19-0.16(-0.27)

Exxon Mobil Corp

82.17+0.38(+0.46)

Ford

10.16+0.01(+0.10)

Citigroup

26.92-0.87(-3.13)

IBM

199.73+0.69(+0.35)

Yahoo

15.28-0.12(-0.78)

Starbucks

53.02-0.32(-0.60)

Microsoft

29.90-0.31(-1.03)

Home Depot

48.77+0.10(+0.21)

DailyFinance Headlines

Benzinga Headlines

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

DailyFinance BlackBerry App

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

BioHealth Investor Headlines

Page Loaded in 1337211014046 ms.