Often recognised as the longest word in the English language, "antidisestablish-mentarianism" (28 letters) describes an opposition movement, in England in the 1800s, to the separation of church and state. I thought it only appropriate that the world’s largest company, Wal-Mart Stores Inc, with the world’s largest workforce, have its own even larger word, to describe its own opposition movement. It should be “antidisestablishmentwalmartarianism. (35 letters)” which is an aggressive, relentless, at any cost, opposition to the elimination of its direct working relationship with its own employees. Simply stated, the word means an opposition by Wal-Mart’s leaders to the unionisation of its workforce in the US and anywhere else it operates in the world.

So why are Wal-Mart’s leaders such fervently against unions? I think it is because free market capitalism, serving customers, respect for people, and employee partnership are imbedded in Wal-Mart’s cultural DNA. Contrary to media reports, Wal-Mart actually pays wages and provides benefits that are above average, when compared with other retail companies in America. This fact has frustrated union organisers who have tried for decades to organise Wal-Mart’s employees and failed.

Wal-Mart has been accused by organised labour of being downright anti-union. In response, Wal-Mart’s leaders would tell you that Sam Walton created a culture which is simply ‘pro-people.’ Historically, Wal-Mart’s employees have shunned union organisers because they already know that they have tremendous promotional opportunities, competitive pay and benefits in the retail industry, profit-sharing and stakeholder bonuses, cross-training into a variety of jobs, and an ‘open door grievance procedure’ to air their concerns.

Wal-Mart’s employees know their company isn’t perfect, but its employees are also smart enough to know that there is nothing labour unions can give them that they don’t already have. The only guarantee is that a union would require Wal-Mart’s employees to pay unions dues, and it is possible a union contract negotiation with Wal-Mart could actually lead to lower pay and less benefits for the affected employees. To this day there is not a single Wal-Mart Store in the US that has a collective bargaining agreement.

Theoretically speaking, what difference would it make if Wal-Mart’s workforce was unionised? In a word, plenty. The corresponding rise in cost of sales for payroll caused by unionisation would have devastating consequences for the world’s largest retailer’s low profit business model. Wal-Mart would be forced to raise prices reducing its primary advantage which is every day low prices. A unionised American workforce at Wal-Mart would level the competitive playing field in US retailing eliminating the lopsided price advantage Wal-Mart has enjoyed in the marketplace for decades. A vicious downward spiral would occur as higher union labour costs associated with its unionised workforce would require Wal-Mart to raise its prices to maintain profitability, in turn making its stores less attractive to consumers. Discount retailing is a volume driven, ‘low price’ strategy, but if Wal-Mart’s prices rise their sales volume would drop causing its expenses as a percentage of sales to increase. In order to maintain a profitable business Wal-Mart’s leaders would be forced to close unprofitable stores, and many of its store employees would have to be laid off, and as a consequence service would suffer. Globally manufacturers that supply Wal-Mart with products would lose production volume forcing employee layoffs, and consumers would see their buying power diminish. The US economy would be negatively impacted as the lid comes off product pricing, and inflation once again raises its ugly head. As the American economy goes, so goes the world economy, as the trickle down impact of Wal-Mart unionisation in America would impact economies around the globe. There is no choice for Wal-Mart but to remain union-free. It is a battle that must be waged, and it must be won, because remaining union-free is not only the key to the company’s continued profitability, it may also be the key to the retail giant’s long-term survival.



The writer is a former Wal-Mart ‘director of people’ and a professional speaker. He has written a book each on the company and Sam Walton