Maryland Legislature Stands Up to Wal-Mart, Sets Example for U.S.

January 13, 2006

"NOW applauds Maryland lawmakers for standing up to big businesses like Wal-Mart," said NOW Executive Vice President Olga Vives. "These legislators put the health and welfare of the people of Maryland above corporate profits, and for that they should be commended."

Yesterday the Maryland General Assembly voted to require that private companies employing more than 10,000 people statewide spend at least eight percent of their payroll on health care for employees or contribute the difference to a state fund for those unable to afford insurance.  At the present time Wal-Mart is the only employer affected by the legislation. The Maryland House and Senate not only overrode Governor Robert Ehrlich Jr.'s veto, they also prevailed in the face of costly advertising and lobbying efforts by Wal-Mart.

The Maryland NOW chapter worked closely with labor unions and other workers' rights advocates to ensure passage of this important bill. 

"As the first state to enact such legislation, Maryland has set a bold example for the rest of the country," said Vives, noting that more than 30 other states are considering similar measures. "U.S. workers deserve better.  If Wal-Mart executives won't do what's right on their own, then it's time for our elected representatives to lead the way."  

Wal-Mart's workplace abuses are well-known because groups like NOW have been spreading the word.  In 2002, NOW named Wal-Mart a "Merchant of Shame" as part of its Women-Friendly Workplace Campaign.  The company faces a massive class-action lawsuit filed by 1.6 million former and current female employees for discrimination in wages and promotions. Although women make up two-thirds of Wal-Mart's workforce, have more seniority and higher performance ratings than men, they hold only one-third of the management positions, and are concentrated in the lower paying jobs.

Fewer than half of Wal-Mart's employees are able to participate in the company's health insurance plan, due to eligibility restrictions and the high cost of the coverage. Many Wal-Mart employees have had to seek assistance from state government programs in order to provide health care for themselves and their families.

"The main reason Wal-Mart is the richest company in the world is because it pays workers so little, while contributing next to nothing toward their health care," said Vives. "The time has come to tell Wal-Mart, and any company tempted to follow its business model, that you cannot stay at the top if you're standing on the backs of your workers."   

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For Immediate Release
Contact: Mai Shiozaki, 202-628-8669, ext. 116; cell 202-641-1906

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