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2009

International Human Resources

28/03/09

Wal Mart

Laure CORRECHER

Chérif DJILLALI

Alcidiane JOLY

Xavier LECOQ

Manon LEROY

Morgane VIGNES



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Table of contents

Introdu ction ................................ ................................ ................................ ................................ ....... 3

I. Human R es our ces Mark e ting ................................ ................................ ................................ ...... 4

A. Int ernal Communi cation ................................ ................................ ................................ ......... 4

B. Personn e l Services ................................ ................................ ................................ .................. 6

C. External Communi cation ................................ ................................ ................................ ........ 7

II. Wal-Mart Human R es our ces communi cation strat egy ................................ .............................. 1 0

A. Car ee r opportuniti es off ered and employ ees we ll-be ing ................................ ...................... 1 0

B. Brand imag e through e thi c and social commitm ent ................................ .............................. 11

C. Wal-Mart r ec ruiting campaign ................................ ................................ .............................. 1 3

III. Human R es our ces in pra ctice................................ ................................ ................................ 15

A. Working condition s ................................ ................................ ................................ .............. 15

B. Discrimination ................................ ................................ ................................ ...................... 16

C. Labor Union vs Wal-Mart ................................ ................................ ................................ ...... 1 9

Con clusion ................................ ................................ ................................ ................................ ....... 24

Ref erences ................................ ................................ ................................ ................................ ....... 25



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I ntroduction

Communication in the Human Resources has a key role within companies and in

most of them; it is organized at two levels: internal and external communications. The aim of

communication is to have a special place in the potential candidate min d or in the

employees¶ minds; it is also a way to create a differentiating point to be able to sustain the

competition against other companies that might also be very active on the job market. This

way companies put into practice strategies to enrol or ret ain employees.

External communication in the Human Resources is a very important stake to attract

the best candidates and it is a way of ensuring the future performances of the company. This

is an integral part of the recruiting strategy and it has to be c arefully elaborated:

communication and marketing is definitely a tool to recruit future employees.

Internal communication represents the continuing application of external

communication as employees loyalty is an everyday life purpose. Indeed, when candida tes

become employees, loyalty needs more than ever to be improved.

Nevertheless, we will question here the gap that can exist between the

communication strategy and the situation into practice taking the example of the number one

worldwide retailer (employs 1,3 million people in the United States, it is also the largest

private employer in this country and in Canada and Mexico), Wal -Mart that has been these

last years controversial.

To do it so, we will first discuss the role of communication in Human Resources

analyzing it on an internal and then external point of view, then we will apply the theoretical

part to Wal-Mart communication strategy, especially the recruiting campaigns they have

settled over the years and finally we will talk about the situation into practice taking into

consideration the turmoil they have been in referring to the discriminations and the workers

treatment they have been accused of, and considering the height of trade unions.

What¶s at stake here is the fact that the company emplo ys more than 2 million people allover the world, there are one of the biggest employers in the States and they¶ve experienced

lot of turmoil concerning their practices toward their employees.



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I. H uman Resources Marketing

A . I nternal Communication

Definition:

Let¶s first define the concept of internal communication. According to the online BNET

Business dictionary, internal communication embraces all ³the communication between

employees or departments across all levels or divisions of an organization´. It ³is a form of

corporate communication and can be formal or informal, upward, downward, or horizontal.´

S takes:

There are several stakes which show the importance of the internal communication.

But the main challenge for the firm is the loyalty of its employees . It means that it has to

control its turnover. From this, many aims are following, satisfaction among other things.

According to the book ³Identifier et fidéliser vos salariés de talent´ written by Benjamin

Chaminade, the professional involvement of an em ployee depends on four factors: the

satisfaction, the promotion, the rules and the confidence. So the firm has to create an

environment of communication. It is crucial for the firm to communicate on its vision, its

culture and its values so that the employees feel more at ease and feel like they are an

integral part of the organization. The aim is also to create a kind of participative logic. In this

way, internal communication allows informing the employees about the important decisions

taken by the senior managers and the problems which are affecting the firm. Those points

will permit the employees to feel involved in the life of the organization. But sometimes, it has

to overcome the rumors too. Nevertheless, the final goal is to organize the ascendant an d

descendant communication. Finally, effective internal communication will reinforce

relationships and create a kind of community within the firm.

Message:

First and foremost, before any selection of the media, the senior management shouldfirst think about the message which will be communicated. According to the book Effective

Internal Communication written by Lyn Smith, ³simplicity should be the guiding principle

behind the delivery of the specific messages. Information should be kept simple and

presented in language with which the selected audience comfortable´. In other words, it is

essential that managers choose the words they are going to use for the content of the



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message. Moreover, the message should be interested for the employees. So senior

managers should think about what the workforce wants to hear. And above all, employees

expected the firm to be transparent. In the current context of crisis, the organizations have to

reassure them. There's not a day goes by without hearing in the news that a co mpany fires

dozens of people and that the employees are completely amazed.

Th e c h annels:

A lot of channels or activities can support the internal communication. It depends on

how many people and which people you want to target. According to the book ´Effe ctive

Internal Communication´, one -to-one communication is the ³most valued form of

communication by employees across all sectors´. This kind of communication is used for the

briefing of individual teams members and for the appraisal of the progress. For o ther

occasions, mass communication is needed, to diffuse information such as business news,

changes, and current affairs. Channels of communication are numerous: from printed papers(newsletters, magazines), intranet, e -mails, to broadcast and audio-visual means. Others

ways such as integration seminars, meetings are also used to keep in touch and to exchange

with the employees. All those tools are complementary.

Common problems in internal communication:

According to the Field Guide to Leaders h ip and S u pervision, 2008, several problems can

occur in internal communication which should be addressed:

- ³If I know it, then everyone must know it´: that is one of the most important problem,managers consider that if they know something, everyone else knows it to o. But the

staff can¶t know it unless managers make them aware of it;- ³Did you hear what I meant for you to hear?´: that is a problem of message content.

The employees may interpret the message differently than the managers wanted it.

That can cause conflict and misunderstandings;- ³If I need your opinion, I'll tell it to you.´: this mean that managers often don¶t pay

attention to the opinion of their subordinates. In other words, employees have to do

their jobs and what they would say has no value.

All those problems show that there is still some way to go before internal communication

is efficient and well used by managers.



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B . P ersonnel Services

P ersonnel services can be used as a complementary mean of internal communication toimprove the loyalty of the employees. But it deals more with their comfort and the personal

development. That is why they are essential. Each firm develops its own services so as to

differentiate from the other companies. They are often complementary offers with those of

the State. Here are some examples to illustrate the wide range of possibilities:

- Human services: they help employees to reconcile their private and professional life.

Ex: day-nursery within the company (Renault, Crédit Lyonnais «); fitness center; dry -

cleaners«-

Financial benefits: profit sharing, stock options, complements of pension ( P ERCO)«- P romote professional equity: awareness campaigns about racial, sex -based

discrimination; wage equity; corporate social responsibility (ex: HSBC) «

Those services contribute to the satisfaction and the motivation of the employees. They

understand that they are working in a fair and ambitious environment.

Other tools aim at improving the personal development of the employees:

- Setting up of careers paths: for instance in P SA P eugeot- Citroën Group, there are

qualifying courses, coaching for young managers, training periods to discover the

company«- Career interviews, career committees« Ex: ³Career Dates´ Crédit du Nord.

All those tools will strengthen the motivation of the empl oyees thanks to a lot of evolution

and promotion perspectives. Indeed, they see that their employer pay attention to the

individual and that there is kind of reciprocity. So a climate of confidence can emerge.

Moreover, by facilitating the combination of p rivate and professional life, the employers help

their workforce to work in a relaxed state of mind.

To conclude, internal communication and personnel services should be considered not

only as ways to improve the loyalty of the employees but also as way to get a competitive

advantage toward the others firms, all the more so we are in a context of crisis.



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C. Ex ternal Communication

Nowadays, Companies are generally starting to discover that the simple action of advertising a vacancy in the newspaper is no longer adequate means for successful

recruitment. Like the candidates who must learn to sell themselves during an interview, the

company must learn to sell itself, and to charm with it s human resources policy in order to

attract and retain the best profil es.

Therefore, the company tends to communicate more and more on its human resources

management and to point up its social initiatives. In other words, to make HR marketing to

seduce.

Two reasons can explain the fact that companies must attract and create employees

loyalty, in a context where the obtaining of resources is complex:

- First, there is a risk of workforce¶s shortage by 2015 for the traditional professions and for

the specific training because of the massive retirement (papy -boom).

- Secondly, there is a war of talents, companies have to show initiative and creativity if they

want to attract and retain the most competent and talented associates.

- Finally, the candidates¶ expectations towards the employers are becoming more complex;

the candidates are more demanding, they don¶t content themselves with an attractive

remuneration any more, today they want the company to offer them future career prospects

in terms of personal development, promotion, and a balance between their professional life

and their private life. According to a survey, candidates are more and more attentive to the

company¶s image, values, to the work conditions , and are sensitive to the professional life¶s

quality.

Therefore, companies realize how important it is to positively market the company

brand both internally to current employees and externally to potential candidates to

differentiate from others companies. To achieve this, many companies try to build an

attractive image employer by communicating more on their values (from a human or an

ethical point of view), on their cultural identity in order to obtain a better adequacy between

the company¶s values and the candidates¶ ones. For example on his recruitment¶s website,

l¶Oreal presents itself as an innovative and a socially responsible company, with values like



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- Forum in the schoo ls , where compan ies come to mee t s tuden ts , presen ting the ir

company .

- ews le tters tha t compan ies send to a ll the schoo l¶s s tuden ts to inf orm s tuden ts abou t

the news of the company .

- In order to ga in in c loseness with pres tig ious schoo ls , some compan ies sponsors

spor ting even ts . For examp le , o ta l sponsored the 4L trophy th is year by g iving

money to teams .

wo hundred files have be ing depos it wh ich represen ts a good and e ff ec tive

commun ica tion f or the company . O thers compan ies organ i e spor ting even ts like n ilog

wh ich each year organ i es a f oo tba ll tournamen t be tween s tuden ts of pres tig ious schoo ls

wh ich cons titu te the targe t of the recru itmen t f or n ilog . ur ing th is day , s tuden ts can

d iscover in para lle l, the company and the d iff eren t jobs and mee t the persons in charge o f

the recru itmen t . h is is a commun ica tion too l wh ich a llows to improve the vis ib ility of the

company with s tuden ts .

Ano ther in itia tive is the crea tion o f webs ites devo ted to the recru itmen t . any compan ies

have a lready crea ted the ir webs ite wh ich in troduce the ir uman esources Po licy , off ers an

a ttrac tive presen ta tion o f the d iff eren t pos itions , the career perspec tives and tes timony o f

emp loyees .

S ome compan ies organ i e s trong even ts like open day´ in the ir bu ild ings or in symbo lic p laces . h is is the case o f La Soc ié té énéra le wh ich each year organ i es a day where the

d iff eren t jobs are presen ted to the cand ida tes ; there are a lso spaces of recru itmen t. Las t

year , the open day´ took p lace a t the St ade de France´ , th is year it will take p lace a t the

é f ense . Ano ther company EA S organ i es severa l times in the year , some vis its o f the s ite

f or the young gradua tes and round- tab le con f erence with eng ineers .



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Finally, a company¶s challenge like the HR trophy was founded to reward companies

which are exemplary in their Human Resources policy or in their recruitment. In 2006, Accor

was rewarded because the company had implemented a system of gener ational

management; other companies are also rewarded for their effort in terms of battle against

discrimination or for the cultural diversity of their employees. This trend was confirmed by the

launching of a classification intitled ³great place to work´ which establishes the prize list of

companies looking for promoting the quality of life in their company. (cf

http://www.greatplacetowork.fr/ )

II. W al-Mart H uman Resources communication strategy

Communicating about its human resources policies is an important stake for companies:

this is a way to send good incentives to people in order to trigger off their curiosity and their will to come to work within a specific organization.

We have decided to take the example of Wal-Mart to understand concretely what might be

the tools used by companies to communicate about recruiting process and to attract potential

candidates.

First of all, we have to mention the high aim of their human resources website which

enhances their efforts put on the career opportunities offered, on the employee¶s well -being

and on their brand image. Then we¶ll see their active recruiting campaign as the importance

is to show applicants the company is present and active on the job market.

A . Career opportunities offered and employees well-being

In their website, Wal -Mart put the emphasis on the job perspectives their offer: ³wide range of

path if you join Wal-Mart´. By doing this, not only are they trying to catch the reader attention

but they are also trying to widen their target as they are mass marketing because themessage really conveys an impression of a commitment to diversity: ³We engage in job fairs,

college recruiting, and interns h ips to increase t h e diversity of our candidate pool for ope n

positions t h roug h out t h e company.´ Opportunities are given to everybody.

They are directly exposing the benefit earned by working with them: they offer employers to

earn experience, to gather it and to create interactions. In a way they are contributing to the



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increase of Human Capital because they assess themselves as means of the transfer of

knowledge between employers and they also stress the purpose of learning by doing. Finally

they point out the trust and the empowerment employees are granted when t hey join the

company.

P lus an entire page is dedicated to the opportunities given: Corporate Affairs, Finance,Marketing, Global Security or Merchandising to name a few so that every applicant can find

what fits best to his or her career profile.

Wal-Mart also advocate for the global scale they have as an argument to enrol candidates.

Employees can evolve within the organization and have international perspectives. Such an

aspect is a sign of power and of worldwide presence.

Now about the employees¶ well -being: one of the human resources theories is thatwell-being of employees has a direct impact on their job performances, on the atmosphere

and on the advantages they can get out of their position is a determining criteria in the final

decision to join a company or not. Moreover, considering the American context, that is to say

their welfare system which has always been a source of concern for all American workers,

we can understand the stake of underlying the benefit system em ployers are eligible to as it

is a top priority for them. Benefit is seen as a reward: they detail precisely what are the

advantages of their system. Each employee is given the advantage of choosing the welfare

protection that fits him or her best consider ing their lifecycle (single, married, parents«)

They consider their employees¶ well-being their mission: ³We want associates and t h eir

families to h ave t h e peace of mind t h at t h eir h ealt h care needs will be met, especially w h en

t h ey need it most. T o ensure t h at peace of mind, Wal-Mart¶s h ealt h coverage includes no

lifetime maximums on most h ealt h care expenses.´

Therefore as in every marketing and communication campaign, whether it deal with human

resources or not, the codes are the same: they stress their strengths by promoting them and

they hide their weaknesses.

B . B rand image through ethic and social commitment

As we have seen until now, Wal -Mart has put into practice a series of techniques in

order the potential candidates to select them: this way Wal -Mart can reduce the impact of the



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asymmetric information and the company is introduced to the people that are re ally eager to

be part of it.

Not only are they putting the emphasis on the jobs and the perspectives they offer and on

the employees¶ well-being, they are also carefully working on their brand image. And here is

a crucial point. Iain Ellwood wrote: ³Brand ing shapes internal company culture´. So they havebuilt their marketing campaign to attract future employees around the theme of their business

culture.

Indeed, the brand image and the culture of a company might be determining in candidates¶

final choice whether to join the firm or not. The basic principles of communication have

stressed the importance of the feeling of belonging to a group. For instance, a very eco -

friendly person will certainly tend to prefer working for a company that takes measures to

prevent pollution rather than working for a company that completely neglects it. This is

because the image of the company reflects in his or her mind the image of the worker.

Therefore, during the last decade, Wal -Mart has started to become socially commit ted: from

donating money to association to creating a Wal -Mart Foundation. Of course, this

commitment is a way to attract customers but we can¶t deny that it is an argument to catch

job seekers attention.

Let¶s focus on their human resources website. An entire page is dedicated to their global

presence. In the middle the catch -phrase ³To succeed in this world, you have to change allthe time´ can be read. That implies that Wal -Mart is evolving at the same pace than the world

considerations. They deal with nowadays problematic and they appear to be flexible enough

to do it so.

³Wal-Mart is known across the world for offering its customers the products they need at

prices they can afford.´ Isn¶t that strange to find this kind of sentence in a company human

resources website? They are directly alluding to the customer while they are targeting future

employees. But by expressing this, they show their potential employees that they are

customer-oriented rather than profit -oriented. They are inviting potential can didates to jointhem and to be part of that mission.

Another key remark, they invite the visitors of the website to have a reflexion about Wal -Mart

getting involved in associations: ³Think about this: In February 2008, Wal -Mart made a

$1,000,000 donation to the Red Cross Society of China for disaster relief in areas impacted

by the worst snowstorms in China in half a century.



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P lus, they don¶t call their employees ³workers´ or ³employees´, they call them ³associates´

which creates a group dynamic and which reduces the effect of hierarchy. P eople are

psychologically sensitive to that.

Finally, they have posted a video with pictures relating their worldwide social actions such as

their commitment to Indian orphans, to starving people in Argentina, Brazil and Mexico.

So, through all these techniques, and through this marketing approach, Wal -Mart is

demonstrating its social actions. More than words, they are using videos to show that they

are evolving with the environment, that they respect it and try to contrib ute to a better world.

What is actually at stake here is to invite people to join the firm. By doing it, they will be able

to perform their task and to have the satisfaction of contributing to social matters at the same

time.

C. W al-Mart recruiting campaign

As it was said previously, Wal -Mart is one of the biggest employers in the world. They are

established in a wide range of countries and the more it goes the more they are expanding.

Therefore, they have to deal with an increasing job offer. To respond to that, they have

launched various recruiting campaigns whose purpose is again to attract and enrol people.They¶ve settled a system based on adverse selection: the campaigns deliver general

information (to have a better and a wider impact) so that potentia l candidates have enough

data to respond to that and to select themselves.

First, we need to stress the importance of selecting the right candidates. Employees are the

direct link with the customers: what they represent, their well -being has a direct impact on the

relationship they have with them. The idea is that to represent the variety of customers,

companies need to employ diverse people.

To perform that, the Human Resources Department has adopted a marketing approach.

They have analysed the job market and they¶ve segmented it to finally target it. One of the

ways they are used to segment relies on the community segmentation that we will talk about

below.



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Let¶s take again the website of the Human Resources. The site is based on a very

welcoming design. Each page has its own blue frame in which we can see a person

standing. To encourage all races, both female and male to join Wal -Mart and to prove they

are not discriminative; these people are different from one page to another. The black, the

Latino, the Asian and the white communities are all represented. Women and men are also

present and they use strong catchphrases as a marketing tool: ³Select your path and live

better´; ³Your success is our goal´, to name a few. They are imposing this way a

phenomenon of identification. Through identification, the candidate selects himself or herself

as the right person to join the firm.

Then, Wal-Mart also participates to national recruitment conference by sponsoring it or by

being part of it. As in the website, they take again the targeting communities marketing tool.

In fact, they have a well defined campaign of recruitment. As an example, in 1997, Wal -Mart

decided to launch its brand new recruiting campaign (they had planned to hire over than 200thousand new employees at that time) during the National Hispanic Employees¶

Association¶s (NHEA) third annual conference. Not only were they present during the

conference but also they had signed a partnership with this association: ³We wanted to get

the word out about our national recruitment campaign in the Hispanic community and felt the

NHEA conference and career expo was a great place to start´ said Coleman P eterson,

senior vice president of Wal -Mart¶s P eople Division.

Their campaigns and actions are also reactive in oder to reduce to silent the consequences

of scandals, in this case with the black community, Wal -Mart donated $5 million in 2006 tothe National Urban League to finance workforce development and some other programs that

would facilitate the black empowerment group.

In other words, they segment the potential candidates based on minority criteria and they

apply specific strategy to target them all.

The company is indeed targeting its potential employees creating through recruiting

campaigns and using marketing tools the envy among people thanks to the identification

phenomenon.

So we have seen that Wal -Mart is definitely making efforts in marketing and advertis ing in

the sector of the Human Resources. They adopt a strategy that consists in promoting the

career opportunities the employees are offered, in stressing the importance granted to their

well-being within the company, in being socially committed and in la unching recruiting

campaigns targeting the potential employees and adopting a customer point of vie to do it so.



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Nevertheless, is the strategic marketing policy connected to reality? Or can we talk about

a gap between both. The consequences and the risks of every kind of human resources

marketing and communication strategy are to be over the board of reality and not to be able

to avoid turmoil and scandals. This is what the second part will about as the focus will be put

on the Human Resources in practice.

III. H uman Resources in practice

A . W orking conditions

Wal-Mart has also faced accusations involving poor working conditions of its employees. For

instance, an average of 150,000 people was forced to work off -the-clock, was denied

overtime pay, or was not allo wed taking rest and lunch breaks.

Concerning the testimonies of Wal -Mart employees,

The firm has faced problems concerning new stores locations as for instance the store Wal-

Mart Superstore opened in 200 in Mexico, not far away from the historic Teotihu acán

archaeological site and P yramid of the Moon. Although Wal -Mart's proposal received protest

and media attention, Wal -Mart has been accused of predatory pricing that is to say sellingitems at too low a cost for the purpose of injuring competitors and destroying competition. In

addition, several public organizations accused Wal -Mart for "monopolistic practices" that is

to say they blame the firm to sell goods below cost or at prices significantly less than those

available to other stores. In other wo rds, on stample goods for instance Wal -Mart has been

pointed to force competitors out of the business and gain monopoly on local markets.

Concerning its suppliers, Wal -Mart has been accused of monopsony practices because it

dictates prices to its sellers in order to sell its goods at prices lower than all the competitors.

These allegations of Wall Mart negotiating way show the human resources managing

problems of the company.

Afterwards, concerning the employees¶ relationships of the firm it is obvious that lots of

critical points are argued by the workers. In one hand, 70% of the employees leave Wal -

Mart within the first year that is to say the turnover rate is very high and they didn¶t agree with

the top-management policy and the issues involving low wages, poor working conditions,

inadequate health care, and strong anti -union policies are some explanations of the Wal -



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Mart¶s human resources problems. In other hand, even though there is an unhappy

workforce, there is an average of 3500 applications for 350 positions American people think

the brand is a great place to work.

The report of the Los Angeles Alliance for a New Economy underlines that the employees

are paid 20% less than the average retail workers and pay its workers at least $2 more anhour and add $1 or $2 an hour beyond that to improve its health benefits. Wal -Mart

managers are judged, in part, based on their ability to control payroll costs.

The enterprise argues that it is difficult to compare because Wal -Mart employs more part

time workers and the company's more extensive training, supervision and automation

provides opportunity to workers with little or no experience or skills and this may account for

wage differences. But it is obvious the company doesn¶t make any efforts to avoid overtime

work without compensation

Indeed, the Wall Mart philosophy is based on its founder Sam Walton once said, "I pay low

wages. I can take advantage of that. We're going to be successful, but the basis is a very

low-wage, low-benefit model of employment."

Wal-Mart is considered as the single largest importer of foreign -produced goods in the United

States", their biggest trading partner is China, and their trade with China alone constitutes

approximately 10% of the total US trade deficit with China as of 200 «

«One more reason to blame their working conditions and the way they implem ent their

business.

B . D iscrimination

A big worry about Wal-Mart is its behavior toward employees. Several cases of

discrimination have been identified and prove that the company mistreats workers and

applicants as well.

First of all, we will identify who are the victims of such a system and how they are

discriminated. Then, we will point out the reaction of Wal -Mart. Finally, we will see what Wal -

Mart does now in order to prevent class actions from happening.



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1- The victims of Wal-Mart

Among the victims of Wal-Mart, we find all categories: women, disabled people and also

long-term workers. We will describe how these different categories suffer from discrimination.

Women

It¶s obvious that a glass ceiling does exist in Wal -Mart. Women suffer from low salaries, bad

promotions, sexual harassments, bad working conditions« so a lot of reasons to complain

because of unfairness compared to men.

That¶s what happened for example in 2001: six women sued Wal -Mart in California mainly

because of bad promotions and lower salaries than men. Thus, the lawsuit was so important

that it concerned all female workers employed in the 3 00 American supermarkets of the

chain since December 26 th 1998, so over 1.5 million plaintiffs. The result is the largest clas s

action of the American history.

More precisely, the purpose of that class action is more complex and denounces cruel acts.

We can quote some scandalous discriminatory remarks from managers: ³retail is h ard and

not appropriate for women«women h ave to be ³ bitc h es´ to survive in Wal-Mart

management«God made Adam first, so women would always be second to men«Men areh ere to make a career and women aren¶t.´

About p romotions : in order to reduce costs, Wal-Mart hires mainly women for basic tasksand lower wages than for men. This can be explained by the fact that, in 2001, more than

two-thirds of workers are female whereas only one -third of managerial positions are held by

them. Moreover, women deserve more consideration according to their longer seniority and

their merit.

About salaries : as said before, women are paid less than men. For instance, in 2001, female

managers earned on average $1 500 less than men in the same position and female hourly

workers earned about $1 100 less than their male peers. Even af ter taking into consideration

seniority and performance, for the same position, women earned from 5 to 15 percent lessthan male counterparts. Wal -Mart also reduces to silence those who try to oppose its bad

practices.



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Disabled people

Wal-Mart is known for violating the Americans with Disabilities Act (ADA): until September

2005, the Equal Employment Opportunity Commission (EEOC) had filed nineteen suits

against Wal-Mart because of that. That discrimination concerns qualified disabled workers

and job applicants.

About d isable d workers : unfairly fired by Wal -Mart just because of disability -related

reasons.

About job a pp licants : rejects of applications and pre -employment questionnaires to screen

applicants through the ³Matrix of Essential Job Functions.´ A ll is done in order to scare away

disabled people who want to work at Wal -Mart.

It is so scandalous that even the EEOC chairwoman Ida Castro said: ³It is extremely

troubling t h at one of t h e nation¶s largest employers continues to s h ow a reckless disregard for t h e statutory rig h ts of individuals wit h disabilities« Th ese far -reac h ing court sanctions

s h ould put Wal-Mart on notice to invest its vast resources in rooting out discrimination at t h eir

stores rat h er t h an stringing along plaintiffs wit h agreements t h e y do not intended to fulfill.´

Long-Term Workers

We all know that the more you stay in a company, the more costly you are for it. Wal -Mart

doesn¶t care how long people work; it just fires those who stayed long enough to aspire to

higher wages. A relevant t estimony about it: ³ Th ey want to get rid of t h em because t h ey¶ve

been t h ere a number of years, some wit h t h e grandfat h ered [time -and-a- h alf] rule onS undays, some up on t h e pay scale. Th ey can bring in a new person at $7.50.´

It is a so high-level concern within Wal-Mart that a memo stipulates that a worker with 7

years of tenure is almost 55 percent more than the cost of a worker with 1 year of tenure,

and this without any difference of productivity.

A way to get rid of Long-Term Workers consists in setting specific quotas to employees

according to their level of salary. To sum up, the more you win, the higher the goal. And vice -

versa for the beginners. It implies that the task is tougher for long -term workers and putspressure on them in order to scare th em away. Obviously, Wal-Mart managers set

unreachable goals on purpose for those who are too costly for the company. A worker on

condition of anonymity says: ³One of t h e ladies, a few weeks ago, h er demo was fifty -one

bags of frozen strawberries. Th at week , we h ad just broug h t in fres h berries from California.Sh e went up and asked h ow to sell [frozen] berries w h en t h ere were fres h ones. Th ey said

not to complain.´



20

1- Why d o p eo p le unionize?

P eople unionize because through collective bargaining they can deal higher wages. This

allows the reduction of wage inequalities. In fact unions raise the wages for those who need

it the most.

In 2000, unionized carpenters averaged 16% higher wages than non -union carpenters.

In 2005, in the USA, the mean hourly wage pay for a union member was $22.65, compared

to the $17.77 earned by non -union members that year.

So, unions permit employees to get a higher pay standard. Thus, they are happier and more

productive because they are motivated by their salary.

Then, unions help the workers to get an acceptable health insurance.

2 - The Wal-Mart p ractices: the observation

Wal-Mart is extremely anti-union which is very lucrative for the firm because it keeps pay,

promotions and benefit expenses to a minimum!

Wages

Wal-Mart employs more people in the United States than in any other country and the

majority of its employees live below the poverty line.

In 2005, to reach the basic needs for a two-person family, a family had to make more than

$27,9 8 annually but the average associate at Wal -Mart made $17,11 yearly.

This is more than $10,000 below the necessary $27,9 8 needed to meet the basic needs of

only a two-person household.

Health insurance

66% of large US firms provide their workers health coverage on the job, only 6% of Wal -

Mart workers have insurance.



21

3- How d oes Wal-Mart p revent the creation of tra d e unions

Wal-Mart Stores Incorporation has used lots of tactics (some are illegal) to block the ability of

its workers to form labor unions.

According to Human Rights Watch ± a United S tates of America based NGO t h at conducts

researc h and advocacy on h uman rig h ts - the world's largest seller has restricted the spread

of pro-union views, threatened to withhold benefits from workers who organize, interrogated

workers about their union sympathies and sent managers to spy employees¶ conversations.

- Atmosphere of fear and intimidation

Wal-Mart has refused to negotia te collectively, fired employees it knows to be pro -union and

focused security cameras on areas where union organizing is heaviest, according to theHRW report. Many tactics comport with U.S. law but taken together they create a climate of

fear and intimidation.

- The process begins when Wal -Mart hires new employees

Wal-Mart exposes new hires to anti-union training sessions and videos, gives managers

union-prevention manuals and uses a centralized database to chase union activity across the

stores.

Wal-Mart often warns new workers during their orientations about the negative

consequences of organizing. The company provides similar warnings to managers at all

levels and gives them explicit instructions on preventing union formation, such as carefully

supervising store morale, many of which are contained in the company's "Manager's

Toolbox ".

One key instrument in the Toolbox is Wal -Mart's Open Door P olicy, which asserts that

workers may raise concerns with managers and, if they are not satisfied with the response,

take their concerns to any level of management without fear of retaliation. The Toolbox is the

"greatest barrier" to worker organizing. Wal -Mart constantly mentions the Op en Door Policy

to workers as a main reason why workers do not need a "third -party representation".

- O ther illegal tactics

Wal-Mart has also illegally threatened wo rkers with significant consequences if they form a



22

union, including loss of benefits, such as raises.

It has also illegally employed several methods to gather information about union activity while

concurrently forcing workers to stop organizing. The compa ny has coercively interrogated

workers about their co-workers' union sympathies through direct and often hostile

questioning and sent managers to spy the discussions among employees in a proposed

bargaining unit.

Wal-Mart has been so successful at ruining worker efforts to develop unions that only once

since the company opened in 1962 have workers organized.

- Ex ample of Argentina

Wal-Mart currently employs 5,800 workers in Argentina.

Argentina's national congress led an investigation into Wal -Mart's labor system in July 2007.

First, Wal-Mart is anti-unions in Argentina. Gustavo Cordoba, a labor activist at a Wal -Mart

store in Buenos Aires, was fired because of his union activity. He testified before the

investigative committee about the corporation's anti-union practices. The retail chain prohibits

workers from referring to themselves as employees, and insists on the term "associates."

They are forced to sing the Wal -Mart anthem at work.

Then, workers report that Wal-Mart uses humiliating tactics in the stores, in some cases

going as far as prohibiting workers from taking bathroom breaks. For example, a 19 -year-old

cashier was prevented from going to the bathroom after she asked for permission. Although

she was menstruating, the supervisor made her wait for 30 minutes. When she had stained

her pants, the supervisor accompanied her to the bathroom and brought her new pants and

underwear for her to continue working her shift.

Another concern is that Wal-Mart has hired ex-military officers who operated during the

nation's bloody 1976-1983 military junta for administrative and security positions within the

company.

To finish with, one single store in Buenos Aires reports sales of more than $3.3 million per

month, and an employee makes about $300 a month. With rising inflation, Wal -Mart's

salaries fall below poverty levels, where a family needs a minimum of $600 a month to meet

basic needs.



23

4 - The actions le d against Wal -Mart

Fifty-seven class action lawsuits filed since 2000 complain that Wal -Mart broke wage and

hour laws by forcing workers to work "off the clock," neglecting to pay them overtime and

refusing them meals and rest breaks.

As a consequence, the United Food & Commercial Workers (UFCW) led a demonstration

against Wal-Mart. Then, it was followed by the TUAC in Québec in 2003. They decided to

launch an action of unionization in the north of America. In 2005, the UFCW and the Service

Employees International Union deci ded to boycott all Wal-Mart supermarkets. They were

followed by ecological groups.

5 - The Wal-Mart p ractices: the controversy of the lea d ers

Wal-Mart spokesman David Tovar said the Human Rights Watch report is based on

"unsubstantiated allegations" and add ed that the retailer respects its workers' right to a free

and fair unionization vote.

"Wal-Mart provides an environment of open communications and gives our associates every

opportunity to express their ideas, comments and concerns," Tovar. "It is because of our efforts to foster such an environment that our associates have repeatedly rejected

unionization attempts."

Wal-Mart CEO H. Lee Scott Jr defends Wal -Mart's explaining that the firm has an open -door

policy. Workers can talk to their district manager that is why they don¶t need to have a third -

party representation to deal with their problems because the issue can be resolved within the

store.



24

Conclusion

As a conclusion, what makes human resources communication so important is the

competitive advantage that it can create compared to competitors because from that strategy

on it might directly be linked to the performance of employees referring to the internal

communication, and to potential candidates¶ choice on an external point of view.

Nevertheless, we have learnt from the Wal -Mart case that there might be a gap between

human resources communication strategy and its application when it comes to the

application.

In other words, communication can give to the company a competitive advantage, b ut it can

also give a disadvantage when it is not applied in reality. Indeed, employers can express

their dissatisfaction using the same tools used by companies and Trade Unions have played

a great role in terms of employees¶ emancipation.

In the case of Wal-Mart, the worldwide retailer has suffered from the empowerment of their

employees that are expressing loudly their concern about their working conditions and the

treatment they are undergoing. We definitely have to point out that employees¶ loyalty ca n

only be improved in reality: communication is a mean, not an end to reach it.



25

References

I. Human Resources Marketing

http://dictionary.bnet.com/definition/internal+communication.html

http://en.wikipedia.org/wiki/Internal_communications

http://www.journaldunet.com/management/dossiers/050272marketing_rh/index.shtml

http://www.loreal.fr/_fr/_fr/carriere-l-oreal.aspx

http://www.quatrevents.fr/site/MARKETING_RH/Recruter_les_meilleurs_talents_pour_Total/

Effective Internal Communication

Author: Smith, Lyn

Editor: Kogan Page, Limite d

P ublication: 2005

Identifiez et fidélisez vos salariés de talent

Author: Chamina d e, Benjamin

Editor: AFN OR

P ublication: 2003

II. Wal-Mart Human Resources communication Strategy

http://walmartstores.com/

Essential Brand Book: Over 100 techniques to increase brand value (2nd edition) p1

Author: Ellwoo d , Iain

Editor: Kogan Page, Limite d

P ublication: 2002

Wal-Mart donates $5 million to black rights group, source provided by Reuters



III . Human Resources in p ractice

A. Working conditions

http://www.iht.com/articles/2005/05/0 /business/walmart.php

http://en.wikipedia.org/wiki/Criticism_of_Wal -Mart

B. Discrimination

Alternatives Economiques - n°256 - Mars 2007

http://www.alternatives-economiques.fr/discrimination ---wal-mart-

vise_fr_art_209_2 739.html

http://wakeupwalmart.com/facts/#Wal -Mart%20&%20Gender%20Discrimination

http://www.hrw.org/en/node/10970/section/6

http://www.business-marketing.com/store/article-walmart.html

C. Labor unions vs Wal -Mart

³ ARGENT INA: WAL-MART FA CES A CCU SAT IONS OF ANT I-UNION PRA CTICES Written

by Marie Trigona Tuesday, 0 December 2007 Source: Americas Program

Wal-Mart An d Unions: Community Effects of Union & Non -Union Labor by Desiree

Sanchez, Daniel Scrivner, Roberto Garcia Jr, and Fabian Renteria

Article Les syndicats :le dos au mur » taken from Québec en mouvements (Idées et

pratiques militantes contemporaines) ,Francis Dupuis-Déri, Lux, 2008, p. 97-110.

Wal-Mart's Scott: We're Not "Anti - Union " Bu sinessWeek, Oct. 3, 2005

Discounting Rights : Re p ort « Wal-Mart's Violation of US Workers¶ Right to Free dom of

Association » by Human Rights Watch April 30, 2007

word_final_wal-mart

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