bureaucracybusters

COSTCO VS. WALMART: TWO VERSIONS OF EMPLOYER

In Bureaucracy, Business, Social commentary on July 29, 2014 at 2:30 pm

Corporations aren’t staffed by faceless machines.  They’re staffed by men and women.

And those men and women take their marching orders from the man (usually) or woman at the top.

Thus, you can learn a great deal about a CEO–and his company–by the way his employees are treated.

Consider the differences between Walmart and Costco.

REVENUES:

Costco:  In 2011, its revenues stood at $89 billion.

Walmart: In 2011, its revenues stood at $447 billion.  But profits declined by 4.6%, to $15.7 billion.

HEALTH INSURANCE:

Costco: About 88% of Costco employees have company-supplied health insurance.  “I just think people need to make a living wage with health benefits,” Craig Jelinek, Costco’s CEO and president, told Bloomberg.  “It also puts more money back into the economy and creates a healthier country.  It’s really that simple.”

Walmart: In January, 2014, the nation’s largest private employer will deny health insurance to newly hired employees who work less than 30 hours a week.

Walmart eliminates healthcare coverage for certain workers if their average work-week falls below 30 hours–which regularly happens at the direction of company managers.

Walmart has refused to say how many of its roughly 1.4 million U.S. workers are likely to lose medical insurance under its new policy.

Many of the Walmart workers who might be dropped from the company’s health care plans earn so little that they would qualify for the expanded Medicaid program.

Of course, if they live in any of the 26 Republican-controlled states refusing to expand Medicaid coverage, they’ll wind up with nothing.

“Walmart is effectively shifting the costs of paying for its employees onto the federal government with this new plan, which is one of the problems with the way the law is structured,” said Ken Jacobs, chairman of the Labor Research Center at the University of California, Berkeley.

In 2005, Susan Chambers, Walmart’s then-Vice President of Benefits, outlined how the company could remove sick workers from payrolls and avoid paying healthcare benefits.

Three major studies–in Georgia, Massachussetts and California–found Walmart employees to be the ones most reliant on government aid.  Annually, Walmart employees cost taxpayers more than $1 billion nationwide.

WAGES:

Costco:  Pays a living wage, with its employees starting ats $11.50 per hour.  The average employee wage is $21 per hour, not including overtime.

Walmart: Most Walmart workers earn less than $20,000 a year.  According to Bloomberg News, the average Walmart Associate makes just $8.81 per hour.

CEO SALARY:

Costco: Its CEO and president, Craig Jelinek, made about $4.83 million in 2012.

Walmart: CEO Mike Duke made roughly $19.3 million in 2012.

According to CNN Money: Walmart’s CEO makes as much as 796 average employees.  Costco’s CEO makes 48 times more than the company’s median wage.

HOLIDAYS:

Costco:  Costco closed for Thanksgiving, giving its employees time to spend with their families.

Walmart: Forced its employees–on pain of being fired–to open its stores nationwide at 6 p.m. on Thanksgiving.

The results: Multiple instances of fistfights, taserings and knifings among shoppers whose greed had been roused to fever pitch by Walmart adverftising.

PROMOTINS:

Costco: Hires from within. More than 70% percent of its warehouse managers began their careers working the floor or the register.

Walmart:  Facing mounting criticism for its low salaries, Walmart, on October 29, announced that it would promote more than 25,000 employees by the end of January, 2014.

STABILITY:

Costco: The annual turnover rate for employees who have worked at the company for more than one year is less than six percent.  For executives, the turnover rate is less than one percent.

Walmart: Since 2008, Walmart has fired or lost 120,000 American workers, while opening more than 500 new U.S. stores.

Many workers quit to find better-paying jobs.  As a result, turnover at Walmart has been correspondingly high.

ADVERTISING:

Costco:  Doesn’t advertise or rely on a public relations staff.

Walmart: By contrast, Walmart spent $1.89 billion on self-glorifying ads in 2011.

Recently, Walmart has been forced to launch a massive PR campaign to counteract its notoriety for low pay, employment of illegal aliens, lack of health benefits and union-busting tactics.

* * * * *

Some things can’t be quantified.

Goodwill, which is created by taking care of one’s employees–paying them a living wage and providing them with medical care–is one of them.

Similarly, ill will–created by paying the lowest possible wages and forcing employees to essentially become welfare clients–is another.

And some things that can be quantified don’t necessarily make for Nirvana.

In 2012, the Forbes 400 stated that the six wealthiest heirs to the Walmart empire were collectively worth $115 billion.

Yet this has not protected the Walton family from bad publicity–such as from striking workers and news media hungry for scandal.

Nor has it shielded the Waltons from ridicule–Jay Leno routinely jokes about the hordes if illegal aliens Walmart “accidentally” hires.

Americans face a stark choice between two types of corporate employer–one that protects its employees, and another that essentially preys on them.

Which direction the nation chooses to go in will largely determine its course for long-term prosperity or short-term ruin.

MICHAEL CORLEONE IS SMILING: PART THREE (END)

In Bureaucracy, History, Military, Politics on July 28, 2014 at 10:39 am

John and Robert Kennedy knew what they were doing.  They waged a vicious war against Fidel Castro–a war someone had to lose.”

So writes Gus Russo in Live By the Sword: The Secret War Against Castro and the Death of JFK, published in 1998.

During the Cuban Missile Crisis, Robert Kennedy–referring to the 1941 Japanese attack on Pearl Harbor–had resisted demands for a “sneak attack” on Cuba by saying: “I don’t want my brother to be the Tojo of the 1960s.”

But in the fall of 1963, the Kennedys planned such an attack on Cuba just one month before the November, 1964 Presidential election.

In what is almost certainly the definitive account of the assassination of President John F. Kennedy, Russo reaches some startling–but highly documented–conclusions:

  • Lee Harvey Oswald assassinated Kennedy.
  • He did it alone.
  • Oswald, a former Marine, was a committed Marxist–whose hero was Castro.
  • The CIA’s ongoing campaign to overthrow and/or assassinate Castro was an open secret throughout the Gulf.
  • Oswald visited New Orleans in the spring of 1963.
  • There he learned that Castro was in the crosshairs of the CIA.
  • Oswald told his Russian-born wife, Marina: “Fidel Castro needs defenders.  I’m going to join his army of volunteers.” 
  • Jack Ruby, a Dallas nightclub owner, murdered Oswald because he was distraught over Kennedy’s death. 
  • Ruby was not part of a Mafia conspiracy to silence Oswald. 
  • Skeptics of the Warren Commission–which concluded that Oswald had acted alone–asked the wrong question: “Who killed Kennedy?” 
  • They should have asked: “Why was he killed?”
  • The answer–according to Russo: “The Kennedys’ relentless pursuit of Castro and Cuba backfired in tragedy on that terrible day in November, 1963.”

Lee Harvey Oswald

Another book well worth reading about America’s Cuban obsession during the early 1960s is American Tabloid, by James Ellroy.

Although a novel, it vividly captures the atmosphere of intrigue, danger and sleaziness that permeated that era in a way that dry, historical documents never can.

“The 50s are finished,” reads its paperback dust jacket.  “Zealous young lawyer Robert Kennedy has a red-hot jones to nail Jimmy Hoffa.  JFK has his eyes on the Oval Office.

“J. Edgar Hoover is swooping down on the Red Menace.  Howard Hughes is dodging subpoenas and digging up Kennedy dirt.  And Castro is mopping up the bloody aftermath of his new Communist nation….

“Mob bosses, politicos, snitches, psychos, fall guys and femmes fatale.  They’re mixing up a Molotov cocktail guaranteed to end the country’s innocence with a bang.”

Among the legacies of America’s twisted romance with anti-Castro Cubans:

  • Following the JFK assassination, there was a coverup–to safeguard the reputation of the United States government and that of its newly-martyred President.
  • Thus, the CIA and FBI concealed the anti-Castro assassination plots from the Warren Commission investigating Kennedy’s assassination.
  • Other participating officials in the cover-up included Attorney General Robert F. Kennedy and President Lyndon B. Johnson.
  • This secrecy ignited the widespread–and false–belief that the President had died at the hands of a government conspiracy.
  • Robert Kennedy feared that his relentless pursuit of Castro might have backfired against JFK, leading Castro to “take out” the President first.
  • Fearing his own assassination if he continued Kennedy’s efforts to murder Castro, President Johnson ordered the CIA to halt its campaign to overthrow and/or assassinate the Cuban leader.
  • The huge Cuban community throughout Florida–and especially Miami–continues to exert a blackmail influence on American politics.
  • Right-wing politicians from Richard Nixon to Newt Gingrich have reaped electoral rewards by catering to the demands of this hate-obsessed voting block.
  • As a result, the United States still refuses to open diplomatic relations with Cuba–even though it has done so with such former enemies as the Soviet Union, China and Vietnam.
  • Cuban ex-patriots still hope that the United States will launch a full-scale military invasion of the island to remove Castro.
  • These alleged Cuban patriots fear to risk their own lives by returning to Cuba and launching an uprising against him.  

That crisis stemmed from our twisted obsession with Cuba, an obsession that continues today.

Texas Congressman Ron Paul is correct:

“But I think it’s time…to quit this isolation business of not talking to people. We talked to the Soviets. We talk to the Chinese. And we opened up trade, and we’re not killing each other now.

“We fought with the Vietnamese for a long time. We finally gave up, started talking to them, now we trade with them. I don’t know why…the Cuban people should be so intimidating.”

It’s time to end the half-century contamination of American politics by those Cubans who live for their hatred of Fidel Castro and those political candidates who live to exploit it.

It’s long past time to end this wag-the-dog relationship.  A population of about 1,700,000 Cubans should not be allowed to shape the domestic and foreign policy of a nation of 300 million.

Those who continue to hate–or love–Castro should be left to their own private feud.  But that is a feud they should settle on their own island, and not from the shores of the United States.

MICHAEL CORLEONE IS SMILING: PART TWO (OF THREE)

In Bureaucracy, History, Military, Social commentary on July 25, 2014 at 1:01 pm
On April 17, 1961, the U.S. Navy landed 1,700 CIA-trained Cuban exiles ashore at Cuba’s Bay of Pigs.

President John F. Kennedy–wanting the attack to disguise the role of the United States in the invasion–refused to commit U.S. Marines and Air Force bombers to the invasion.

Long forewarned of the coming invasion, Fidel Castro sent in his forces to decimate the invaders.

Kennedy took responsibility for the failure.  But privately he blamed Castro for refusing to be overthrown.

As a result, Kennedy and his brother, Robert–then Attorney General–created  their own covert operation to depose Castro.

Robert and John F. Kennedy

Known as the Special Group, and overseen by Robert Kennedy, it launched a secret war against the Castro regime, code-named Operation Mongoose.

“We were hysterical about Castro at about the time of the Bay of Pigs and thereafter,” Secretary of Defense Robert S. McNamara later testified before Congress about these efforts.  “And there was pressure from JFK and RFK to do something about Castro.”

Robert S. McNamara

Nor was everyone in the CIA enthusiastic about the “get Castro” effort.

“Everyone at CIA was surprised at Kennedy’s obsession with Fidel,” recalled Sam Halpern, who was assigned to the Cuba Project.  “They thought it was a waste of time.  We all knew [Castro] couldn’t hurt us.  Most of us at CIA initially liked Kennedy, but why go after this little guy?

“One thing is for sure: Kennedy wasn’t doing it out of national security concerns.  It was a personal thing.  The Kennedy family felt personally burnt by the Bay of Pigs and sought revenge.”

It was all-out war.  Among the tactics used:

  • Hiring Cuban gangsters to murder Cuban police officials and Soviet technicians.
  • Sabotaging mines.
  • Paying up to $100,000 per “hit” for the murder or kidnapping of Cuban officials.
  • Using biological and chemical warfare against the Cuban sugar industry.

“Bobby (Kennedy) wanted boom and bang all over the island,” recalled Halpern. “It was stupid.  The pressure from the White House was very great.”

Among that “boom and bang” were a series of assassination plots against Castro, in which the Mafia was to be a key player.

Chicago Mobster Johnny Rosselli proposed a simple plan: through its underworld connections in Cuba, the Mafia would recruit a Cuban in Castro’s entourage, such as a waiter or bodyguard, who would poison him.

The CIA’s Technical Services division produced a botulinus toxin which was then injected into Castro’s favorite brand of cigars. The CIA also produced simpler botulinus toxin pills that could be dissolved in his food or drink.

But the deputized Mafia contacts failed to deliver any of the poisons to Castro.

Fidel Castro

As Rosselli explained to the CIA, the first poisoner had been discharged from Castro’s employ before he could kill him, while a back-up agent got “cold feet.”

Other proposals or attempts included:

  • Planting colorful seashells rigged to explode at a site where Castro liked to go skindiving.
  • Trying to arrange for his being presented with a wetsuit impregnated with noxious bacteria and mould spores, or with lethal chemical agents.
  • Attempting to infect Castro’s scuba regulator with tuberculous bacilli.
  • Trying to douse his handkerchiefs, tea and coffee with other lethal bacteria.

Americans would rightly label such methods as “terrorist” if another power used them against the United States today.  And the Cuban government saw the situation exactly the same way.

So Castro appealed to Nikita Khrushchev, leader of the Soviet Union, for assistance.

Nikita Khrushchev

Khrushchev was quick to comply:  “We must not allow the communist infant to be strangled in its crib,” he told members of his inncer circle.

By October, 1962, the Soviet Union had sent more than 40,000 soldiers, 1,300 field pieces, 700 anti-airctaft guns, 350 tanks and 150 jets to Cuba to deter another invasion.

Khrushchev also began supplying Castro with nuclear-tipped ballistic missiles–whose discovery, on October 15, 1962, ignited the single most dangerous confrontation of the Cold War.

Suddenly, the two most powerful nuclear countries–the United States and the Soviet Union–found themselves on the brink of nuclear war.

John F. Kennedy in the Oval Office

At the time, Kennedy officials claimed they couldn’t understand why Khrushchev had placed nuclear missiles in Cuba.  “Maybe Khrushchev’s gone mad” was a typical musing.

None of these officials admitted that JFK had been waging a no-holds-barred campaign to overthrow the Cuban government and assassinate its leader.

The crisis ended when, after 13 harrowing days, Khrushchev agreed to remove the missiles from Cuba.  Behind its resolution lay a  promise by the Kennedy administration to not invade Cuba.

But President Kennedy was not finished with Castro.  While continuing the campaign of sabotage throughout Cuba, the Kennedys were preparing something far bigger: A fullscale American invasion of the island.

On October 4, 1963, the Joint Chiefs of Staff submitted its latest version of the invasion plan, known as OPLAN 380-63.  Its timetable went:

  • January, 1964:  Infiltration into Cuba by Cuban exiles.
  • July 15, 1964:  U.S. conventional forces join the fray.
  • August 3, 1964:  All-out U.S. air strikes on Cuba.
  • October 1, 1964:  Full-scale invasion to install “a government friendly to the U.S.”

But then fate–in the otherwise unimpressive form of Lee Harvey Oswald–suddenly intervened.

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