Mega retailer Walmart has been building stores in pro-union cities while moving out of the non-union south, which has led to increased union attacks. Many workers seek out Walmart jobs from other unionized supermarkets, grocery stores and places where their pay is much less, on–the-job injuries occur in significantly high numbers and labor infractions are many.
The labor turnover may be quite high at 50 %, but this is lower than the industry average for the retail sector, which stands at 65% as stated by the National Retail Federation. Elected officials in certain states such as Vermont have seen the benefits of having Walmart stores in their areas as it has resulted in more jobs and increased economic activity, such as retail boutiques, restaurants, art galleries, and shopping hubs.
Walmart has been accused, as have many other companies in the U.S., of eliminating jobs by getting their products cheaply manufactured in China. However, that is not a unique fault to the retailer as many companies have similar manufacturing plans. In its defense, the retailer says, its workers conduct inspections at their overseas factories to ensure the UN standards of pay and safety are met.
The mega retailer has faced lawsuits and problems for its supposed unfair labor practices. These include low wages, inadequate health care, poor working conditions and a strong anti-union policy. Despite its turnover, studies have shown that in certain counties it reduced the unemployment rate of the black community.
In 2008, the Mexican Supreme Court of Justice ruled for Walmart de Mexico, Walmart’s Mexican subsidiary to cease paying its associates in part using vouchers that could only be redeemed at Walmart stores.