California city moves to block Wal-Mart
Oakland action as supermarket strike continues
October 23 2003
US city Oakland has passed a law designed to stop Wal-Mart from opening any large format supercenters in the area.
The California city has acted as the strike by US supermarket workers in southern California continues. The United Food and Commercial Workers Union has argued that Wal-Mart’s expansion in the state has depressed wages across the supermarket sector. Wal-Mart does not recognise unions, but argues that its wages are competitive wherever it operates.
The strike has hit more that 800 California supermarkets, including the state’s three biggest chains Ralphs, Vons and Albertsons.
The law passed by Oakland city council on Tuesday bans the opening of any retailer with more than 10,000 sq ft of nontaxable sales, which covers floor space devoted to grocery sales.
The council has made it clear its action is targeted at Wal-Mart and is designed to protect the city’s smaller neighbourhood stores and their employees.
The Oakland move mirrors a similar law passed in nearby Contra Costa County, with a ban on large format stores also being considered in Los Angeles.
Wal-Mart spokeswoman Amy Hills, told news agency Reuters: “We are clearly disappointed. We feel the actions taken are anti-consumer and anti-competitive. Oakland is trying to create a false marketplace by not allowing all retailers to compete.”
Wal-Mart had not announced any specific plans to open in Oakland, but has been growing its presence across California.
But Barbara Maynard, a representative for the United Food and Commercial Workers Union in southern California, said there was “no question” that Wal-Mart had depressed wages industry wide.
