Introduction

Wal-Mart is a staple organization in most communities. People find most of their wants and needs in Wal-Mart at a reduced prices. Its appeal of reduced prices even during economic recession attracts consumers. However, most customers do not understand how Wal-Mart ensures and maintains low prices at all times. According to Karen, Wal-Mart maintains low prices at the expense of their staff. She ascertains that Americans cannot live on the paycheck of Wal-Mart. Up Against Wal-Mart argues that the company treats its workers badly through poor wages and understaffing, “We’re underpaid, and I’m worried about my retirement,” says an overnight stocker in Minnesota who asked not to be identified” (Olsson, 2003, p.54). On the other hand, Sebastian Mallaby, Progressive Wal-Mart confirms that Wal-Mart activities are similar to those of other companies. According to Mallaby, Wal-Mart enriches its shareholders and put its competitors out of the market (Mallaby, 2005, p.1). This is a strategy employed by most successful companies. Even though, the two articles are of the same topics, the authors hold different viewpoints regarding Wal-Mart. This paper evaluates the conflicting outlooks as presented in the two articles. Karen believes that Wal-Mart abuses its employees while Mallaby hold that the company helps its workers and shareholders.

Karen’s article focuses on how Mal-Mart treats its employees badly through the provision of poor, working conditions and hardships that the employees encounter. The employees receive low pay; the company does not provide its employees with affordable healthcare besides issues of gender inequality. The company does not allow its employees to join unions. The management under staffs the company to reduce its expenses on wages and cut hiring and recruiting expenses. Olsson affirms that Wal-Mart pushes its workforce to limits, making 1 employee perform tasks of two or more employees, “They push you to the limit. They just want to see how much they can get away with without having to hire someone else” (Olsson, 2003, p.54).

On the other hand, Mallaby asserts that Wal-Mart is a business enterprise like any other, and it does what other business organizations do in efforts of trying to win competitive advantage. Mallaby confirms that Wal-Mart does not treat its competitors and employees with respect besides lacking concern of its surrounding environment (Mallaby, 2005, p.1). He furthers states that Wal-Mart is an international company driven by technology and has, as a result, increased inequality in America. Progressive Wal-Mart acknowledges that employees at Wal-Mart receive low wages, lack health care options, experiences gender inequality and cannot join unions. However, Mallaby claims that Wal-Mart treats employees this way to present job prospects to poor families. He claims that employees receive food discounts and other necessities. This aspect makes products to be affordable to them despite their low wages. According to Mallaby, Wal-Mart discounts on food promote American shoppers welfare by fifty billion dollars per year. The gains are crucial to the poor (Mallaby, 2005, p.1). Even though, employees at Wal-Mart receive mistreatment, they hold increased purchasing power because of low prices offered by the company. Even with low wages, Wal-Mart prices help employees and middle-income earners buy basic needs at affordable prices. The company’s reduced prices create a vast disparity to poor people. This is because  the poor spend a higher percentage of their income on basic things such as food. Wal-Mart reliefs poverty through its over 200 billion dollars assistance to its customers that rivals most of the federal programs (Mallaby, 2005, p.1).

Given its rapid expansion and staggering size, Wal-Mart sets limits for benefits and wages throughout the economy of the United States. Despite the fact that Wal-Mart is a dominant employer, its employees cannot survive by the company’s paycheck. An hourly employee at Wal-Mart receives 18, 000 dollars per year (Olsson, 2003, p.54). These yearly earnings are a immense contradiction particularly to a company that earns 6.6 billion dollars as yearly profit. Most employees at Wal-Mart distance themselves from the company health scheme, which costs 2, 844 dollars a year. The profits that the company gets are much higher than the total wages the company pays its workforce. The company violates wage and hour bylaws.  Wal-Mart compels employees to work extra hours without pay, “…regularly deleted hours from time records and reprimanded employees who claimed overtime” (Olsson, 2003, p.54). In this regard, there are dozens of lawsuits filed by employees against Wal-Mart.  Moreover, issues of gender inequality exist in the company. While over two-thirds of the company employees are females, women form less than ten percent of the company’s top management. Female managers at Wal-Mart receive less pay than males in similar positions.

Mallaby asserts that while the company busts unions besides being ruthless to its employees, the employees have increased purchasing powers due to reduced prices, “Retail workers may take home less pay, but their purchasing power probably still grows thanks to Wal-Mart’s low prices” (Mallaby, 2005, p.1). He further asserts that Saints do not run Wal-Mart. In this regard, competitors and employees can receive rough treatment. The company does not have a concern for environment, and it increases inequality in America. However, its business innovation and globalization fosters its progress. Wal-Mart consumers receive annual gains. As a result, through blocking the company to open novel branches, ordinary and poor families will not receive the Wal-Mart gains.

Conclusion

The arguments presented by both Mallaby and Karen cite mistreatment in terms of reduced wage, overwork, understaffing, gender inequality lack of health care and unions in Wal-Mart. The two authors believe that Wal-Mart oppresses its employees besides creating inequality in America. However, the two articles hold different viewpoints with Mallaby, Progressive Wal-Mart supporting the rough treatment of competitors and employees. He believes that employees get the benefits of their mistreatment through increased purchasing powers. On the other hand, Karen does not see any benefits offered by Wal-Mart to its employees, the environments and consumers. She believes that Wal-Mart’s gains are self-fish gains.

References

Mallaby, S. (2005). Progressive Wal-Mart. Really. Retrieved from   http://www.washingtonpost.com/wp-            dyn/content/article/2005/11/27/AR2005112700687.html

Olsson, K. (2003). Up against Wal-Mart. Mother Jones, 28(2), 54.