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Bernie Sanders Accuses Walmart of Paying 'Starvation Wages'

Bernie Sanders Accuses Walmart of Paying 'Starvation Wages'
(Zhakpix/Dreamstime)

Wednesday, 05 June 2019 02:13 PM

Democratic U.S. presidential hopeful Bernie Sanders on Wednesday told Walmart Inc. shareholders and top executives that the world’s largest retailer should boost the “starvation”-level wages it pays its workers and stop fueling income inequality.

Speaking at Walmart’s shareholder meeting, the U.S. senator said: “Despite the incredible wealth of Walmart’s owners” the company pays “starvation wages.”

He presented a shareholder proposal asking the company to give hourly employees a seat on its board and raise base wages to $15 an hour.

Walmart’s “wages are so low, many of these employees are forced to rely on government programs like food stamps, Medicaid and public housing in order to survive,” Sanders said.

“The American people are so tired of subsidizing the greed of some of the largest corporations in the United States,” he added.

His remarks at the meeting drew attention to his campaign for the 2020 Democratic presidential nomination and the drive for higher hourly U.S. wages, one of his signature issues.

The proposal, filed by Walmart worker Carolyn Davis, was buried at the end of the annual proxy filing. It had no chance of passing since a majority of shares are owned by the family of the founder, the late Sam Walton, and the retailer has asked shareholders to vote against it.

Sanders also complained that “Walmart’s CEO is making a thousand times more than the average Walmart employee.”

Walmart’s CEO received a $23.6 million pay package last year. The ratio compared with that of the median associate was 1,076 to 1.

With his frequent attacks on Walmart, and other major employers, Sanders has been trying to distinguish himself from former Vice President Joe Biden, the front-runner in the race for the Democratic nomination, who also is making a pitch to working-class Americans.

The presence on Wednesday could give Sanders a boost when the two dozen Democratic contenders begin to compete for endorsements from the nation’s biggest labor unions.

Protesters gathered outside the meeting, many from the labor group “United for Respect” which has pushed for a worker presence on Walmart’s board. They held signs supporting Sanders 2020 Presidential campaign and calling for a $15 per hour U.S. minimum wage.

Final results of the vote were expected later in the afternoon.

Walmart (WMT) has raised its minimum wage twice since 2016 to $11 an hour, still lower than the $15 an hour that rival Amazon.com Inc. (AMZN) pays employees. Retailers Target Corp. (TGT) and Costco Wholesale Corp. (COST) also pay higher rates than Walmart.

Chief Executive Officer Doug McMillon said Walmart has raised wages in the United States by 50 percent in the past four years and continues to increase wages on a market-by-market basis to hire and retain talent. He also urged Congress to raise the federal minimum wage from its current $7.25 an hour.

“We are not perfect, but together we are learning, we are listening and changing,” he said.

Walmart has said it pays an average of $17.50 an hour to its hourly employees, including benefits.

Walmart, which employs nearly 1.5 million Americans and is the largest U.S. private-sector employer, drew sharp criticism from labor groups and unions when it changed the format of its annual meeting last year, splitting it into two separate events.

The business meeting at which Sanders spoke is now held a few days before the big shareholder event, which draws thousands of employees. This year and the year before, the company rushed through shareholder proposals at the business meeting, which had a fraction of the attendees, in less than 30 minutes.

© 2019 Thomson/Reuters. All rights reserved.

   
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Democratic U.S. presidential hopeful Bernie Sanders on Wednesday told Walmart Inc shareholders and top executives that the world's largest retailer should boost the "starvation"-level wages it pays its workers and stop fueling income inequality.
bernie sanders, 15, minimum wage, walmart
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2019-13-05
Wednesday, 05 June 2019 02:13 PM
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