MCAW SENDS LETTER TO CONGRESS CALLING FOR INVESTIGATION OF WALMART

FOR IMMEDIATE RELEASE

 

DATE: December 10, 2015

CONTACT:
Jess Levin, 202-466-1576, jlevin@ufcw.org

Meredith Ritchie, 202-466-1503, mritchie@ufcw.org

New Print Ad Will Highlight Walmart’s “Devastating Impact On American Jobs And Our Economy;” Says “Congressional Action Is Needed”

Washington, DC — Making Change at Walmart (MCAW) sent a letter to all Members of Congress about the dramatic and costly failure of Walmart’s U.S. manufacturing program and calls on them to investigate the devastating impact Walmart has had on American jobs losses. The letter, which will run Thursday December 10 as a full page ad in The Hill, cites a new Economic Policy Institute report on how Walmart is responsible for displacing an estimated more than 400,000 U.S. jobs.

“Congress may be divided, but they should and must be united in protecting American jobs. The loss of an estimated hundreds of thousands of American jobs because of Walmart’s business practices is unacceptable. The time has come for Congress to investigate why a company that says it invests in America and creates jobs is actually doing the opposite,” said Jess Levin, Communications Director for MCAW.

The letter calls for Members of Congress to investigate Walmart’s negative impact on America and its failure to create good American jobs. The following are excerpts:

[A] closer look at the company’s real record shows that it has actually been sending an estimated hundreds of thousands of jobs overseas, making false claims about the origins of its products, and using tax havens to avoid paying American taxes.

[…]

As the nation’s largest private employer and one of the most profitable companies in this country, Walmart must be held accountable when they attempt to deceive the American people. Congressional action is needed to make this happen.

We urge you and your fellow Members of Congress to take action and investigate Walmart’s practices.

The letter also references a report from Americans for Tax Fairness on Walmart’s network of subsidiaries and tax havens in foreign countries and a Truth in Advertising investigation about Walmart’s false use of a “Made in the USA” labels on its products.

A full copy of the letter is attached:

 

Dear Members of Congress,

We are writing today to make you aware of a troubling study that directly impacts your constituents, their families, and this nation. Specifically, this study details Walmart’s devastating impact on American jobs and our economy.

As you may know, since Walmart announced its U.S. manufacturing initiative three years ago, the company has regularly touted its commitment to American renewal and to buying products that support American jobs. It has used this program to garner support as part of its public relations, and to highlight to Members of Congress the supposed commitment it has to creating good American jobs.

Unfortunately, a closer look at the company’s real record shows that it has actually been sending an estimated hundreds of thousands of jobs overseas, making false claims about the origins of its products, and using tax havens to avoid paying American taxes.

A new report released on Wednesday, December 9, by the Economic Policy Institute (EPI) found the scope of the hypocrisy Walmart is engaged in when it touts its so-called U.S. manufacturing initiatives.

Among the findings in the EPI report:

Chinese imports entering through Walmart in 2013 likely totaled at least $49.1 billion and the combined effect of imports from and exports of the growth of the total U.S. goods trade deficit with China between 2001 and 2013.

The Walmart-based trade deficit with China alone eliminated or displaced over 400,000 U.S. jobs between 2001 and 2013.

The manufacturing sector and its workers have been hardest hit by the growth of Walmart’s imports. Walmart’s increased trade deficit with China between 2001 and 2013 eliminated 314,500 manufacturing jobs, 75.7 percent of the jobs lost from Walmart’s trade deficit. These job losses are particularly destructive because jobs in the manufacturing sector pay higher wages and provide better benefits than most other industries, especially for workers with less than a college education.

Walmart has announced plans to create opportunities for American manufacturing by “investing in American jobs.” To date, very few actual U.S. jobs have been created by this program, and since 2001, the growing Walmart trade deficit with China has displaced more than 100 U.S. jobs for every actual or promised job created through this program.

To add insult to injury, the study comes in the same year it was revealed that Walmart has built a vast, undisclosed network of subsidiaries and branches in tax havens that can be used to avoid U.S. taxes on foreign earnings. Furthermore, the nonprofit organization Truth in Advertising found hundreds of instances of Walmart claiming products on its website as “Made in the USA” despite having foreign origins.

In the face of all that we know, the time where we can accept Walmart at its word has passed.

As the nation’s largest private employer and one of the most profitable companies in this country, Walmart must be held accountable when they attempt to deceive the American people. Congressional action is needed to make this happen.

We urge you and your fellow Members of Congress to take action and investigate Walmart’s practices.

Regardless of political party, we must all be united in preventing Walmart’s deception when it comes to an issue as vital as creating and protecting good American jobs.

For the sake of the better America we all believe in, we urge you to take action and help change Walmart for the better.

Signed,

Making Change at Walmart