QUOTE(wikipedia)
Wal-Mart has some critics, including community groups, grassroots organizations, trade unions,[6] and environmental groups. Specific concerns include the company's extensive foreign product sourcing, treatment of employees and product suppliers, environmental carelessness, use of public subsidies, and store impacts on local communities and businesses. Additionally, Wal-Mart has faced accusations of illegal activities, including predatory pricing, discrimination and violation of labor laws.
In the United States, one common criticism derives from claims that Wal-Mart may use cheap foreign labor, in an attempt to provide its customers with lower prices. According to the AFL-CIO, "Wal-Mart is the single largest importer of foreign-produced goods in the United States", their biggest trading partner is China, and their trade with China alone constitutes approximately 10 percent of the total US trade deficit with China as of 2004. [29] While Wal-Mart highlights its US suppliers, 60% of its products are imported from other countries.[30] Other Wal-Mart goods have been manufactured and imported from such places as South Korea, Philippines, Malaysia, Cambodia, Thailand, and Vietnam. Very few of Wal-Mart's products are made in the United States.
Another United States-specific criticism concerns Wal-Mart's health insurance. According to an October 2005 article in BusinessWeek, Wal-Mart's health insurance covers 44% or approximately 572,000 of its 1.3 million U.S. workers. [31] In comparison, Wal-Mart rival Costco insures approximately 96% of its eligible workers. [32] Further, Wal-Mart spends an average of $3,500 per employee for health care, 27% less than the retail-industry average of $4,800.[33] Wal-Mart CEO Lee Scott acknowledged benefits could improve by claiming Wal-Mart employees can get better value from taxpayer funded health care than from Wal-Mart's own health plans: "In some of our states, the public program may actually be a better value - with relatively high income limits to qualify, and low premiums." [34] On April 17th, 2006, Wal-Mart announced it was making a health care plan available to part-time workers after 1 year of service, instead of the prior 2 year requirement. One criticism of the new plan is that it provides benefit only after a $1,000 deductible is paid ($3,000 for a family). These deductibles may financially be out of reach for eligible part-time workers. Wal-Mart estimates this change can add 150,000 workers to health coverage plans, if all who are eligible take part. [1]
The State of Maryland passed a controversial bill in January of 2006 requiring that all corporations with more than 10,000 employees in the state spend at least 8% of their payroll on employee benefits, or pay into a state fund for the uninsured. Wal-Mart, with about 17,000 employees in Maryland, was the only known company to not meet this requirement before the bill passed. [35] On Wednesday July 7, 2006, the Maryland law was overturned in federal court by U.S. District Judge Frederick Motz who ruled that the law would "hurt Wal-Mart by imposing the administrative burden of tracking benefits in Maryland differently than in other states."
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