Let's say a labor union contract bumps Walmart prices up 7% -- how would that affect corporate profitability? That would depend on what happened to the rest of the labor market -- namely whether Walmart's employees were primarily the ones to organize, or whether a broad swathe of the American workforce got itself organized.
Walmart's labor costs are a phenomenally low 7% -- most businesses run 10%-15% -- fast food 25%.
If Walmart workers were primarily ones to be newly unionized, then, sales results probably wouldn't differ much from sales lost to a 7% tariff effect.
But, if (IF) labor union density across all private (non-gov) workplaces had expanded from today's 6% to, say, 50%, then, that would probably hike Walmart sales and profits. Lower income workers who disproportionately patronize Walmart would have more purchasing power to splurge.
The bottom 40% of American earners take home 10% of all income. Double their share of overall income to 20% and Walmart sales should likely grow. Walmart purchases by (what I call) the "middle 59%" might go up or down.
Today, the top 1% takes 20% of overall income -- up from 10% when I was a youngster. When I was a youngster the president of the United States was a Republican, retired five star general. When I was a youngster the top personal income tax rate was 92%.
Redistributional taxes can finish the equqlity leveling job. Nobody needs to keep seven hundred (!) million dollars for playing baseball. Cut back Medicaid? Whatever in the world for?!
How are we supposed to achieve something like 50% union density Nirvana? Answer: only by federally mandating union cert/recert/decert elections at every private (non-gov) workplace. How to set all that up is all spelled out here:
https://onlabor.org/why-not-hold-union-representation-elections-on-a-regular-schedule/
Double today's Walmart's wages and benefits -- pumping prices up 7% -- with or without nationwide unionization -- I think the Teamsters Union could live with that.
PS. Thom Hartmann: Trump’s Factory Fantasy: The Middle Class Won’t Rise Without Unions. Full stop.
https://hartmannreport.com/p/trumps-factory-fantasy-the-middle-71f
Wednesday, May 21, 2025
Walmart less profitable with union -- or -- more profitable with 50% unions?!
Subscribe to:
Posts (Atom)