Walmart decision to hire veterans met with enthusiasm and concern

http://www.guardian.co.uk/business/2013/jan/15/walmart-hire-us-veterans-reaction

Version 0 of 1.

A decision by Walmart to hire 100,000 veterans over the next five years has been welcomed by some former military figures but also sparked warnings by others concerned over the giant retailer's reputation for low-wage jobs.

In a speech on Tuesday, which was widely leaked ahead of time, Walmart's chief executive of US operations Bill Simon said the company was making the move due to the qualities that former military personnel would bring as employees.

"Hiring a veteran can be one of the best business decisions you make. Veterans have a record of performance under pressure. They're quick learners and team players. They are leaders with discipline, training, and a passion for service. There is a seriousness and sense of purpose that the military instils, and we need it today more than ever," Simon said in a speech delivered at a National Retail Federation conference in New York.

The news comes after a difficult 2012 for the firm in which it faced a high-profile attempt by some employees to organise for better pay and conditions, a foreign corruption scandal in Mexico and elsewhere overseas and a tragically lethal fire at an unsafe factory in Bangladesh which made clothing for its supply chain.

However, the latest news brought immediate praise from the White House. "Walmart is setting a groundbreaking example for the private sector to follow," said a statement from first lady Michelle Obama, who has made improving the conditions of military families one of her signature causes. The Department of Veterans Affairs also welcomed the scheme. "[We] commend Walmart for their leadership and strong commitment to hire veterans," a spokesman said.

That praise was matched by some veterans themselves. Former marine Zachary Iscol, who has set up a company called Hire Purpose that helps veterans find jobs, said the Walmart scheme was "great news". He added: "There is a business case to be made for hiring the best and brightest of Americans. Veterans are dedicated, tireless and can perform in a team as well as individuals."

But other voices raised concerns. Walmart employs more than 1.3 million people in the United States but many experts say that it pays low wages, often employs people for too few hours to qualify for meaningful health benefits and is hostile to any form of union organisation among its staff.

"Obviously this is a good move that an employer wants to hire veterans. Our concern is that the jobs might be low wage and not offer enough health benefits," said Paul Sullivan, a board member for veterans' rights group Veterans for Common Sense.

Sullivan said that veterans, especially those who might have suffered mental issues or physical injury, needed top quality jobs with adequate health insurance for their needs. He expressed a concern that Walmart might be more concerned with scoring some good publicity for its operations, rather than changing its frequently criticised employment practises. "I am concerned this is a public relations exercise to make the company look good. Veterans need fair wages, union representation and a job that offers a career, not just a low-wage position," Sullivan said.

Walmart certainly would welcome a PR success. Last year's Black Friday – the busiest shopping day of the year in the US, which comes right after the Thanksgiving holiday in November – saw protests by union-backed group OUR Walmart at scores of stores across the US. It has also faced allegations of widespread abuses, unsafe working conditions and wage theft in outsourced elements of its US-based supply chain in southern California and Illinois.

But perhaps the worst PR hit of the year was the lethal fire in the Tazreen factory in Bangladesh which saw 112 local workers die. Though the factory was not meant to feed items into the Walmart supply chain due to being unsafe, documents unearthed after the blaze showed that it had been doing so. It also emerged that Walmart, along with other foreign companies, had blocked a bid to improve conditions in Bangladeshi factories in 2011, including fire safety measures.