Workers of world spice up meeting
Posted on Friday, June 2, 2006
Aaron Betesta, 21, has a handsome face and British accent that might easily lure New York females.
But he spent Tuesday night charming women in a karaoke club and restaurant on Fayetteville’s Dickson Street. Betesta was just promoted to a freshfood manager’s job at Asda, Wal-Mart’s British division.
Like 1, 300 other Wal-Mart workers from Mexico, Germany, Central America, Canada, Brazil, Argentina, Japan, Britain, Northern Ireland and China, he was chosen to represent his store during Wal-Mart Stores Inc. ’s shareholders week.
Wal-Mart is holding its annual shareholders meeting today at Bud Walton Arena in Fayetteville.
Betesta is undaunted by the regimen of tours — the Bentonville retailer’s headquarters, a Wal-Mart Supercenter, a Sam’s Club, a Neighborhood Market — even though the wake-up call comes at 6 a. m. He sees the journey as a prime chance to network.
“This has been a brilliant opportunity for me, truly lovely,” Betesta said. “I had to compete with several workers at my store to get this. We each gave a speech about what the trip would mean to us. I said I really want to excel in a career at Asda. Where else will I have the chance to chat with so many Wal-Mart executives ?”
Wal-Mart’s international division sales increased 11. 4 percent to more than $ 3 billion in fiscal 2006. Wal-Mart Stores Inc. expanded into Northern Ireland last year. In December, Wal-Mart bought 150 Brazilian grocery stores.
In March, Wal-Mart acquired a 51 percent share of Central American Retail Holding Co., a chain of 363 supermarkets, and opened its first new Argentina store in five years. Asda is opening 25 new stores this year.
Wal-Mart plans to hire up to 150, 000 more employees in China over the next five years and open 14 new China stores in 2006. Also, the world’s biggest retailer increased its ma- jority interest of Seiyu Ltd. in Japan.
Retail Management Consultants President George Whalin thinks that may be too much too fast.
“One thing I’ve learned from the history of retail is, it’s dangerous when a company becomes fixated on opening lots of stores across the globe in record time,” Whalin said. “I think labor issues will be issues in a lot of Wal-Mart’s expansion areas. Wal-Mart will have to adapt to national cultures.”
Britain is emblematic of that challenge. Asda was fined $ 1. 59 million for offering 340 drivers and warehouse workers a 10 percent pay raise if they left the union. The offer is illegal under a 1992 British labor law. According to The Guardian, a British daily newspaper, the workers rejected the offer, reported Asda to the government and negotiated a 5 percent raise through their union.
Yet Bertie Howells, who manages an Asda gas station in Britain, insisted that Asda does not invoke the turbulent controversies Wal-Mart has among Americans.
“Asda has its own personality and culture,” explained Howells as he toured the new Rogers Wal-Mart at Pleasant Crossing. “I think Asda managers have the autonomy to make most decisions about merchandise and personnel.”
In January, Asda Chief Executive Officer Andy Bond warned his managers that Asda had missed its sales targets for last year because it had become too complacent about adapting to changing tastes.
He urged them to be creative.
There wasn’t a dissenting voice to be found Wednesday at the Barnhill Arena in Fayetteville, just a gigantic roar as Wal-Mart’s international workers streamed toward a rally.
The Mexican delegates in green shirts unfurled an enormous Mexican flag, then jumped up and down shouting, “The customer is No. 1.” The smallest delegation, Argentina, strolled past in blue shirts, chanting and blasting pale blue horns.
The Chinese delegates cheered while twirling straw parasols adorned with pink and blue crepe flowers.
Central America’s delegation was the biggest at 186. Inside the arena, the chants and cheers continued for 20 minutes. A huge movie screen showed video of the delegates intercut with soccer players from each of their countries.
It was a blend of rave, circus parade and soccer game victory. But San Francisco-based ThinkEquity Partners’ Edward Weller had a wry analysis.
“I think Wal-Mart believes the excitement of a rally will make workers forget they’re earning just a little more than minimum wage,” Weller said. “Then they go back to their home countries and spread the gospel.”
But for some workers, Wal-Mart’s wages may actually be a step up from their nation’s normal standard of living. According to the U. S. Department of State, Mexico’s legally required minimum wage is $ 4. 36 per day and certain regions are permitted to pay less.
Wal-Mart has 120 stores in Guatemala, 57 in El Salvador, as well as stores in Honduras, Nicaragua and Costa Rica. Guatemala’s minimum wage is $ 4. 98 per day. El Salvador’s minimum wage is 60 cents per hour or $ 4. 70 per day.
Wal-Mart spokesman Amy Wyatt said she did not know how to find out what Wal-Mart’s starting salary is for Mexican or Central American workers. Wal-Mart spokesman Bill Wertz declined to give an average wage but said it was competitive with other regional retailers. “I don’t think Wal-Mart would be able to find good workers at those minimum wages,” Whalin said. “To work in a store, you still need to be able to count and do some basic reading and writing. Even basic skills cost something.”
To contact this reporter: ledwards@arkansasonline. com
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