After more than 120 years, National Cash Register left Dayton, Ohio for Atlanta, Georgia. Its CEO avoided meeting with the governor or lieutenant governor of Ohio until after the decision had been made.
In late May, state officials frantically tried to contact NCR about the growing rumors of the company’s imminent departure; the answer was a telling silence. Ohio hurriedly offered an incentive package that was much less attractive than Georgia’s, though Ohio officials say they could have matched the rival offer if given the chance.
No matter; time was up. On June 1, Mr. Strickland and Mr. Nuti finally spoke — by telephone, though — and mostly so that NCR could say goodbye.
NCR is now settling its affairs. It is leaving its archives here, as well as a data center that some company workers will continue to run. But of the 1,200 employees who were here in June, more than half have retired, resigned or been released. The company will not say how many were offered jobs in Georgia, or how many accepted.
Meanwhile, Wal-Mart…well, enough said. Wal-Mart.
It’s been a rough few weeks for Sam’s Club employees. First came the announcement that ten Sam’s Club stores would close and the 1,500 employees who worked there could lose their jobs. Then, yesterday, Walmart announced they would be laying off 11,200 workers. Most of those being laid off demonstrate products in the stores. Walmart’s spokesperson made it clear that this wasn’t about the economy, or the employees performance, rather, they were outsourcing the jobs to Shopper Events a company who’s only purpose is to demonstrate products in Walmart stores.
Walmart has suggested that the 10,000 employees they are firing can apply for a job with Shopper Events, who will be hiring roughly 10,000 employees to fill the gap left by the lay off. It sure sounds a lot like Walmart is asking 10,000 of their employees to reapply for their own jobs.
Meanwhile, unemployment insurance funds have run out in 25 states, which have been forced to borrow from the federal government. Several more states are headed in that direction.
Tags: layoffs, unemployment, Wal-Mart
Stop me if you’ve heard this one before.
Wal-Mart fights to open a store in Chicago. They claim it’s gonna be great, create all these jobs. (Yeah, I’ll wait for the laughter to die down.)
It opens. Then some economists come in and do a study.
The comprehensive study, The Impact of an Urban Wal-Mart Store on Area Businesses: An Evaluation of One Chicago Neighborhood’s Experience, found that Wal-Mart’s opening in Chicago has produced a loss of 300 full-time jobs. Researchers conclude that the probability of a local retailer going out of business during the study period was significantly higher for establishments close to Wal-Mart’s location.
The loss of jobs in the trade areas near Wal-Mart just about balanced out any ‘new’ jobs attributable to Wal-Mart. “These estimates support the contention that urban Wal-Mart stores absorb retail sales from other city stores without significantly expanding the market,” the researchers say. “What we’re seeing here is that placing a Wal-Mart in an urban setting is basically a ‘wash’ in terms of sales revenue for the city and jobs for local residents,” explains study co-author David Merriman, head of UIC’s economics department. “This means that communities around the city should not see Wal-Mart, and other big-box retailers, as a panacea to local economic struggles.”
Whoops. Well, there goes that argument. Not for the first time, either. But I’m totally sure this Wal-Mart will accept reality and stop trying to claim they’re creating jobs. (Yeah, right.)
And a bonus follow-up question: how do the wages of the jobs at Wal-Mart compare with the wages of the jobs that were lost?
(h/t Tahir Duckett)
Tags: Jobs, Wal-Mart
I suppose I should now hire myself out to the big box stores for the possibility of products to review or maybe even pay. Somehow, I think I might be too opinionated for most of them, and way too desirous of my own peace of mind then to ever agree to do it for the likes of them. But, I do have to admit, I found it interesting that they’re recruiting moms, like me, ones that run blogs. From Newsweek
Among the first big companies to work with this segment was Wal-Mart. Last year the retailer recruited a group of mom bloggers to provide feedback on programs, products, stores, and services and to help build a “money-saving community.” Most are as popular as Tara Kuczykowski of DealSeekingMom.com, a blog that focuses primarily on printable coupons, product samples, and giveaways. She has 25,000 subscribers and almost 7,000 followers on Twitter. This is an insta-audience for the mega-retailer, one that’s happy to hear what any mom in their blogging group has to say about their merchandise. To be clear, none of the mommy bloggers are paid by Wal-Mart, says Melissa O’Brien, senior manager of PR and brand reputation. Nor do they have to blog about anything that’s Wal-Mart-related, although Kuczykowski says many of them often do. That’s one of the benefits, she says. They get products they can review from vendors, plus extras to give away on their sites. “There have been a couple of situations where we’ve also been asked to do a video for a vendor and have gotten paid,” she says. “You’re giving your opinions on [a product], but they’re not paying you for a positive opinion.”
I love how the writer says: To be clear, none of the mommy bloggers are paid by Wal-Mart I think it’s missing a word, the word DIRECTLY. You see, Wal-Mart doesn’t DIRECTLY pay the mommy bloggers, they line them up with their suppliers. Isn’t that a nice distinction? Wal-Mart can tell their suppliers about the bloggers and just some how, out of the blue, products, coupons and other “incentives” will magically appear at a mommy bloggers doorstep, but it doesn’t influence you, and it’s not like you’re getting paid or anything. Seriously? How stupid does this writer think I am? Wait, how stupid does Wal-Mart think all of us are?
I suppose companies like Wal-Mart have thought of Americans as Sheeple. Like we run around, eating grass, shepherded by ad agencies from one commercial product to the next, never knowing or caring why. And mommy bloggers are the latest sheeple in the mix.
But I do have to wonder if these mommy bloggers who are enticed by the free products, incentives and coupons know what it’s like for the average warehouse worker. I know they meet the “associates” when they go to the stores, but do they know how or at what cost those cheap consumer products are brought to them? And if they knew, would they care? Does Tara think beyond her pocket book and the 25,000 subscribers she’s got?
Perhaps, she might like to read Harold Meyerson in the American Prospect:
On May 14, Wal-Mart released its first-quarter financials for 2009 and announced that despite the recession — or, perhaps, because of it — business was booming. Shoppers in search of cheaper products had been flocking to its stores: A full 17 percent of its customers during the quarter were first-timers. The company had been able to exploit the downturn by reducing its legendarily bare-bones distribution expenses by an additional 5 percent. In keeping with its practice of compelling its manufacturers, shippers, truckers, and warehouses to continually cut costs, Wal-Mart had been able to “sweat the assets” in its distribution network more than usual, said Eduardo Castro-Wright, head of the company’s U.S. division.
Tags: Wal-Mart
