For the last three years, Walmart has been knee-deep in plans to build and open six stores in Washington DC. Once completed, the project would bring 1800 jobs, fresh produce, and inexpensive shopping to lower-income areas which, traditionally, were lacking all three. Half of the new stores are already under construction, with the first scheduled to open in the fall. Everything seemed to be going swimmingly.
So, of course, the city's left-wing government had to step in and screw it all up.
This afternoon, Washington DC's city council decided it would approve what it calls the "Large Retailer Accountability Act." The new measure forces any retailer whose parent company does over $1 Billion in annual sales to pay their employees "a living wage."
What's a living wage, you ask? Try $12.50 an hour. That's a whopping $4.25 more than Washington DC's already higher-than-average $8.25 per hour minimum wage.
Hang on, though, because it gets even better. You would assume the law applies equally to every store, right? Wrong. The bill contains exemptions for large stores with unionized workforces. If your establishment has managed to avoid the "collective bargaining" shakedown, well... sorry. You're in the crosshairs of a law designed to attack any big-box outfit which has the audacity not to unionize - namely, it targets Walmart.
During today's hearing, which ultimately led to the bill's approval, an amendment was proposed which would have extended similar exemptions to the three new Walmarts which were already under construction. That amendment was voted down by a 10-3 margin.
No love for you, Walmart. You've committed the unforgivable sin of selling cheap Pringles.
After working- for years - to bring the stores to DC, Walmart is now faced with a city council that has decided to upend their business model by forcing them to pay prospective employees more than they can afford. It's an epic bait-and-switch, built on a hatred of non-union capitalism and buoyed by the belief that Walmart is too far along in its plans to back out.
...and to their credit, Walmart may not be willing to tolerate it.
In a Washington Post op-ed Tuesday, Walmart regional general manager Alex Barron announced that the retail giant is ready to abandon the entire project. Rumors are swirling that, now that it's been approved, Mayor Vincent Gray may veto the bill. However, if it's enacted as written, Walmart has vowed to end development on the three yet-to-be-constructed stores, while it reviews its options regarding the others.
"Wal-Mart will not pursue stores at Skyland, Capitol Gateway or New York Avenue if the LRAA is passed," Barron wrote. "What's more, passage would also jeopardize the three stores already under construction, as we would thoroughly review the financial and legal implications of the bill on those projects."
Yes, the implied threat is that they may simply pull up stakes and leave town.
Sadly, instead of creating 1800 new jobs, the left's relentless desire to punish non-union retailers may leave DC with three empty buildings, no additional workers, less revenue from taxes, and a hostile business climate which will scare off other potential retailers.
Congratulations to the liberal brain trust.
