Nice to see labor is starting to fight back.
http://www.bloomberg.com/news/artic...mand-discount-on-food-in-new-labor-flashpoint
http://www.bloomberg.com/news/artic...mand-discount-on-food-in-new-labor-flashpoint
Walmart Employees Demand Discount On Food
- Thread starter NJPSU
- Start date
Janet Sparks is 100% correct. Walmart shouldn't give employees a 10% discount on cat food.
No different than Walmart telling the employees they now have a new dress code,and will give them a 10% discount on those clothes..How many millions will Walmart make on those sales.?
You do know that 1.) there is an employer / employee relationship, and 2.) it is 100% voluntary?
Here's what I would do if I owned a business ....I would offer X amount to attract the skill sets I want. If I wasn't able to attract the talent I need, I would have to offer more or settle for less skilled workers. If my employees striked to extort more pay out of me, I would fire them and replace them with people that would be happy to have those jobs. Kind of the same thing when we shop for goods and services, eh? I buy from the place that offers the best combination of price, quality, and service. I'm not obligated to buy from anyone. It's called having choices. It's called the free market. If the workers at WalMart or anywhere else think they're not paid enough or their benefits aren't good enough, they have the option of looking for another job. If it gets to the point that WalMart or anyone else can't find the labor they need at their current "offering", then they'll adjust. Simple as that.
What kind of profit margin do you think Walmart has on groceries? Most grocers have a 2% profit margin.
Liberals don't care. The entire concept of "profit" gets lost on them, and that bit of reality is immaterial to their vision of utopia.
That's true but Walmart knows they will get killed in the press and the court of public opinion if they treat their employees that way. That could result further damage to the brand and decrease in sales.
That's what Walmart management is constantly weighing....increased labor costs or bad press/damage to the brand and sales.
They recently increased worker's salaries. They didn't do this out of the goodness of their heart. It was a business decision to protect the brand.
Thats about right,1 to -3% profit on groceries,50% on produce,30-35 % on meat,25-35% on deli products..They make there money on volume.
No, 2% on all groceries combined. Your numbers don't consider costs like spoilage. They probably don't even include the cost of the guy slicing your deli meat.
Straight from the article, "Some employees want more groceries to be included in the discount, noting that competitors such as Target Corp. and Whole Foods Market Inc. already offer that perk."
So right in line with your point, why don't these employees just go work at Target or Whole Foods?
Cons don't care about the employees,The company can bank billions each quarter,but its never enough...
BULL SHIT.. The wife worked in the grocery industry for 30 years..The numbers i gave are the industry standards.and yes they include spoilage,OOD products
Maybe there's no Target where they live? Or there's no Target on their bus route?
Bottom line is the employees can ask for whatever they want but that doesn't mean they are going to get it.
I'm not sure why Wingnuts have a problem with an employee asking for a raise. That's essentially what this is. Thats been going on forever in a free market system.
You're clueless! Grocery chains are low single digits in operating profit. Suspect you don't understand the difference between gross and operating margin.
Liberals hate individual freedom. They would rather destroy the freedom of others by forcing them to acquiesce to their ideology. It's a sickness.
That's right Franklinman, they "the company" just need them "employees" to create, service and sell the products that the company makes...... Why care about that?
I think there was a little more to that.... Like getting employees to staff the store and silly things like that......
So a store bringing in 100k a week has a profit of 1k after paying all the bills...RIGHT,You can't be serious.
Valid points NJ. I have no problem with employees asking for a raise and agree the minimum wage should be increased, $15 is excessively high and would throw the entire economy into uncharted territory about how that would work, but that's neither here nor there on this particular subject.
I'll admit that I merely skimmed the article, but was this employee discount a point of contention before they demanded a rise in minimum wage or was this some sort of unintended consequences of the rise in labor cost they wanted? If this was a problem before the wage issue, I'd think it would have been smarter idea to get this one done first BEFORE the wage increase. At this point, to me personally, it seems like they watched Walmart cave once, now they're going back for more. That's their right, of course, but if they keep going to the well time and time again, at some point its going to be empty.
That's generally how net profits work, yea. According to the Food Market Institute, the average store profit in 2014 was only 1.5%. So you're right, you're hypothetical store bringing in 100k per week(over twice the average store mind you), is making more then $1,000, they're breaking the bank at an astounding $1,500 in net profits per week.
http://www.fmi.org/research-resources/supermarket-facts
Read em and weep Franklin.
Here's Krogers. Their profits are approximately 1.5% of sales.
http://finance.yahoo.com/q/is?s=KR+Income+Statement&annual
http://www.marketplace.org/topics/business/groceries-low-margin-business-still-highly-desirable
They would lose money if they gave employees a 10% discount on all groceries. You act like Walmart gives discounts on merchandise but not food because they want their employees to starve. You really need to get your head out of the sand.
I think it's actually about 3% but that includes a lot of fixed costs: land, building costs, advertising, utlities, taxes, maintenance, etc. None of these will be affected by selling discounted food. Similarly, there are semi fixed costs such as storage and distribution which be affected to some degree. Walmart would still probably still be making a profit in terms of its variable costs if it discounted food to its workers by 10%.
If WalMart has a problem with spoilage, then it's in its interest to sell food at discounted rates before it goes bad.
Take that store that bringing in 100K, produce,10% of store sales,50% gross profit,meat 30% sales-30%profit bakery-deli 5% sales 30%-profit grocery.55% sales 1-3% profit.
Walmart already donates a lot of this food to food banks. You know, the places where low income people can get free food in addition to what they can get with Food Stamps. The same food banks that libs like to pretend don't exist.
Yes Walmart would lose money on Those particular groceries but it would be a relatively modest amount.
If the average employee bought $300 of groceries a month that would equate to $30 of discounts, For an employee working 150 hours a month that would be a 20 cent per hour raise.
I donate food to food banks, too. In my church there's a large bin in the Narthex for food donations. I drop a couple of small bags of groceries worth about $15.00 in there most weeks, three or four small bags before Thanksgiving and Christmas, probably a total of $600-700 a year for which I don't take a deduction. My wife also volunteers her time distributing food through a Meals on Wheels program that the church runs.
In my experience, most food banks are run by "libs."
You seem to forget Walmart sells more than groceries,paint,auto products, tools,clothes,furniture,lighting, ect and are making a lot more than 1-3% on those items,just a guess,50-60 % of walmart sales are not grocery items.
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Nice convenient math Franklin. Let's start out with the fact that Krogers only earns 1.5%. You've already got more than that in produce and meat.
You're wrong right off the bat with your profit figures. I showed you that Krogers earns approximately 1.5% and that the average grocery store chain earns 1.3%.
I'm not arguing that some items have a greater gross profit than others. But the bottom line number is quite low. Walmart doesn't have to give employee discounts on anything. There's a reason why they give it on general merchandise than on groceries. You act like they do it to intentionally starve their employees.
That's a nice gesture but I don't know why you don't claim a charitable deduction. Congratulations to your wife. I have also volunteered time to such programs. Charitable food donations are available in every big city and in most smaller communities. More proof that people aren't starving.
I think you know better than to suggest that most church volunteers are libs.
next they will be complaining that Walmart had to increase prices. Amazing that people who never ran a business, have so much knowledge on how it works.
They don't need to know how it works. If they put enough political pressure on Walmart that Walmart caves and gives them a 10% discount they win.
If Walmart says no, the employees are no worse off than before they asked.
You miss the point entirely. With you democrats, it's all about entitlement. "I am... therefore I am entitled".....
Didn't they just get a raise by more then that recently? But I digress...
When looking at 1 single worker, sure it looks like a modest amount. But as usual, the devil is in the details. Walmart employs 1.4 million people in the US, assuming just 1 million do what you suggested that's a total loss of $360 million per year. That by no means just a "modest amount."
Walmart made roughly 17 billion dollars in profit last year so yes $360 million is absolutely a modest amount.
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