Case 2: Walmart’s Labor Practices
1. Identify and describe the major labor relations issues facing Walmart and the likely
stakeholders to be affected.
The major labor relations issues facing Walmart include concerns over income equality as well
as the company’s policies and practices regarding overtime pay; employment of undocumented
2. Walmart has been said to have excessive power in its relationship with communities. How is
its manifestation of power with employees similar to or different than with communities? Which
is the most serious issue? Why?
The manifestation of power is similar between communities and employees in that it is a free
market system. Walmart relies on customers to shop in its stores and on employees to freely take
jobs. The impact to communities may be the closure small businesses, as well as the change to
3. Are many of the allegations by employees at Walmart just reflections of the changing social
contract between companies and their workers? Are many of the so-called problems just the
free-enterprise system at work? Discuss.
If anything, employment laws have become stronger rather than weaker, so any changing
contract between companies and workers should inure to the benefit of the worker. Many of the
4. Is the practice of being required to work “off-the-clock” an unethical practice or just “to be
expected” in the modern world of work? After all, many salaried employees are expected to
work “until the job is done” no matter how many hours it takes.
The practice of requiring employees paid by the hour to work off the clock is unethical and
exploitive. There is no expectation that hourly employees should work without being
5. Is it wrong for Walmart to fight unionization? Sam Walton always felt the company should
function as one big happy family and that unions were to be resisted. What is your evaluation of
the union opposition?
Walmart’s opposition to unionization appears to be cultural, e.g. the founder Sam Walton was
clearly against it. Additionally, the opposition is financial. Walmart does not want to give into
6. If Walmart can effectively argue that women are contributors to their plight by not applying
for promotions or for seeking fewer responsibilities to accommodate family priorities, should the
company be held to be in violation of sex discrimination laws because the statistics reveal
differences between women and men?
The statistics reveal a disparity that seems to exist because of a cultural norm within the firm.
This should be investigated. We might ask Walmart why women are not applying for promotions
7. Regarding the various labor practices discussed in this case, do they reflect questionable
treatment of associates or just the business system at work?
It seems as though the various labor practices discussed reflect a mixture of questionable
treatment of associates and the business system at work. Certainly the practice of discriminating
8. Have increased competitiveness, globalization, higher wages, technology, and lack of a
stronger e-commerce program affected Walmart’s relations with its associates?
Yes, I believe that it has been it harder for Walmart to maintain its workforce and remain
9. Conduct Internet research on Walmart and update allegations and lawsuits against the
company.
November saw the release of the film Wal-Mart: The High Cost of Low Price. Through
interviews with employees and former managers, the documentary presented a critical view of