Target as Bad as Wal-Mart? You Decide

By Kari Lydersen, CorpWatch. Posted May 1, 2006.

Shopping in a Target store, you know you're not in Wal-Mart. But the differences may be mostly skin deep.

Targets are spaciously laid out and full of attractive displays and promotions. While many people associate Wal-Mart with low-income, rural communities perhaps dominated by a prison or power plant, life-size photos throughout Target stores remind you that their customers are a lively, beautiful cast of multi-cultural hipsters.

"Their image is more upscale, more urban and sophisticated, sort of a wannabe Pottery Barn," said Victoria Cervantes, a hospital administrator and documentary-maker in Chicago who regularly shops at Target. "I'm not sure if their customers really are more upscale. But that's the image they're going for. They have a very good PR campaign."

In contrast to this image, however, critics say that in terms of wages and benefits, working conditions, sweatshop-style foreign suppliers, and effects on local retail communities, big box Target stores are very much like Wal-Mart, just in a prettier package.

Of more than 1,400 Target stores employing more than 300,000 people nationwide, not one has a union. Employees at various stores say an anti-union message and video is part of the new-employee orientation. At stores in the Twin Cities, where Target is headquartered, the United Food and Commercial Workers (UFCW) union Local 789 has been trying for several years to help Target employees organize, with little luck.

"People ask what the difference between Wal-Mart and Target is," said UFCW organizer Bernie Hesse. "Nothing, except that Wal-Mart is six times bigger. The wages start at $7.25 to $7.50 an hour [at Target]. They'll say that's a competitive wage, but they can't say it's a living wage. We know a lot of their managers are telling people, 'If we find out you're involved in organizing a union you'll get fired.'"

Wal-Mart has about 3,800 stores nationwide and another 2,600 worldwide, employing about 1.6 million people. Target plans to open at least 600 more stores by 2010, for a total of about 2,000 in 47 states. Like Wal-Mart, a typical Target sells a wide range of consumer goods including clothing, household items, office supplies, toys, sports equipment, furniture, art, and electronics; and the stores often have photo laboratories and pharmacies. About 160 SuperTargets nationwide also sell "upscale" groceries, as the company's website describes them, and often contain banks, Starbucks, and Pizza Hut Express outlets. Total revenue was up 12.3 percent in 2005 - $52.6 billion compared to $46.8 billion in 2004.

Wage Slaves

A survey by the UFCW found that starting wages are similar in Targets and Wal-Marts -- possibly higher overall at Wal-Marts - and that Target benefits packages are often harder to qualify for and less comprehensive. (Target's media relations department refused to comment on its wages and benefits policies; individual wages and benefits policies are not included in their annual report.)

"We know that Target and Wal-Mart are constantly checking each other out and seeing how cheap they can get by," says a UFCW statement on the website Targetunion.org, urging Target employees around the country to post their wages.

A Target employee who asked that his name and store location be kept secret said he can barely make ends meet on his salary of $8.40 an hour.

"After three years, I have received less than $1 an hour in raises. I started at $7.65," said the worker, adding that he does love his job because of camaraderie with his co-workers. "We are never compensated and rarely even recognized for meeting our goals."

The starting wage he describes would put a single parent with two kids working full time at Target just slightly above the poverty line; someone with more children or working fewer hours would fall below the poverty line.

Compare that to Target CEO Robert Ulrich, who earned $23.1 million in 2005, according to Forbes, making him the second-highest paid CEO in the retail sector. That's more than 1300 times as much as the worker we spoke to.

Sweat on the Racks?

Meanwhile a glance at labels on a few racks of stylish $20 cardigans and capri pants shows that, like Wal-Mart and most major clothing retailers, Target itself sources its products in India, Indonesia, Guatemala, Mexico, Bangladesh, Kenya, Sri Lanka, the Philippines, Vietnam, Cambodia and other low-wage, developing countries.

In October 2005 representatives of a Mexican labor federation protested outside a Bronx Target to call attention to alleged child labor and illegal worker lockouts at a Mexican factory that supplies the store's Halloween costumes.

"The way the global garment industry is, there are so few factories that respect workers' rights that there is no way Target gets its clothes from workplaces where workers' rights are being respected," said Allie Robbins, national organizer of the group United Students Against Sweatshops.

Race to the Bottom

Target doesn't differ from most major clothing vendors; you usually have to seek out small specialty companies to find union-made, American-made textiles. But as one of the country's major retailers, Target is an industry leader, fostering and profiting from the U.S.'s general culture of consumerism: We buy, buy, buy at ever lower prices in a market system sustained by very low-paid, non-union workforces in impoverished countries.

Kari Lydersen, a regular contributor to AlterNet, also writes for the Washington Post and is an instructor for the Urban Youth International Journalism Program in Chicago.

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