An Open Letter to Wall Street Analysts:
When Walmart’s stock dropped last month to a 15-year low, many Wall Street analysts
and pundits were quick to critique Walmart for investing more in associates like us, as if
somehow this small, but significant increase was misguided. Last year, Walmart cleared
$16 billion in profits and has made the Waltons the richest family in the
world. Meanwhile, Walmart workers like me have had years of wage stagnation. It was
about time that Walmart invested in their greatest asset – their workforce.
While analysts talk about profits, many Walmart associates, like us, are living in poverty.
Walmart raised the floor for 500,000 of my co-workers who moved to $9 an hour this
year, after years of worker protests and Walmart getting caught up in the inequality
debate as CEO McMillion said last year when he announced Walmart would move away
from paying the federal minimum wage. Walmart should be acknowledged for this
important step in the right direction. And contrary to many on Wall Street, those of us
who make our living at the largest retailer in the U.S. believe that the increase doesn’t go
far enough. We are calling for $15 an hour and more full time jobs for those who want
them.
And contrary to analysts’ handwringing last month, not only are increases in pay at
Walmart good for our families, our communities and our economy, they are a critical
investment in the future of the company. Walmart is at or near the bottom of surveys on
customer service and reputation. Lifting the pay of front-line workers like me will
increase job satisfaction and reduce turnover; the company already says this is
happening. Critically, providing additional hours for those who want them will also
improve customer service, resulting in shorter lines at checkout and more products on the
shelves instead of in the backroom.
The real question for Walmart is not why the dip in their stock price, but why the
company has lagged in the S&P 500 for over five years. The answer, according to
venture capitalist Nick Hanauer is that “..profits are down at Walmart not because wages
are finally ticking up, but because workers at Walmart and other low-wage employers can
no longer afford to shop enough at Walmart to sustain sales growth. Quite simply, when
the American middle class has less money, Walmart has fewer customers. And that is
very bad for business.”
We are people, not line items on an earning report. While we can’t change an economic
system that rewards companies who treat their employees poorly with higher stock
returns, we can respectfully ask that you, as respected analysts, look at the whole picture
of Walmart — a company that puts profits before people and keeps many of associates in
poverty. Walmart should be investing more and not less in workers like us, and they
should come out proactively to support increasing the federal minimum wage.
With a focus on short-term gains, Wall Street is once again demonstrating why their
agenda shouldn’t be America’s agenda. Their desire that Walmart pay workers as little
as possible for short-term gain will ensure the company’s decline. Instead, we encourage
Walmart to do as their founder, Sam Walton, said, and “listen to your associates” and
heed our call and invest in associates with fair scheduling policies, more full time jobs
and $15 an hour. Walmart, investors, associates, and our communities will all be better
off.
Sincerely,
OUR Walmart Fasters for $15 and Full Time
Viewers are encouraged to subscribe and join the conversation for more insightful commentary and to support progressive messages. Together, we can populate the internet with progressive messages that represent the true aspirations of most Americans.
