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Politics : Don't Blame Me, I Voted For Kerry -- Ignore unavailable to you. Want to Upgrade?

To: redfish who wrote (36680)	7/21/2004 6:18:17 AM
From: stockman_scott	Respond to of 81568

Bush-Mart vs Kerry and Costco ____________________________________ By Michael Forsythe and Rachel Katz Published on the web by Business Report on July 21, 2004. Washington - Executives at Wal-Mart Stores and Costco Wholesale, competitors in the $76 billion (R446 million) US warehouse-club market, have taken their rivalry to a new level: national politics. Wal-Mart, the world's largest retailer and owner of Sam's Club warehouse stores, gives more money to Republican candidates than any other company. Its top three managers, including chief executive Lee Scott, have donated the individual maximum $2 000 to President George W Bush. Jay Allen, the vice-president for corporate affairs, has raised at least $100 000 to re-elect the president. Wal-Mart - two-thirds of whose 3 580 stores are in states that voted for Bush in 2000 - is backing White House policies on everything from trade to limiting overtime pay. Costco chief executive Jim Sinegal is a Democrat who says Bush's $1.7 trillion in tax cuts unfairly benefit the wealthy. He opposed the Iraq war and supports senator John Kerry for president. He's the only chief executive of a company in the Standard & Poor's 500 index to donate money to independent political groups formed to oust Bush, tax records show. "Wal-Mart is extremely strong in Republican strongholds," said Amy Bonkoski, an investment adviser at Cleveland-based National City's private client group. "Costco is stronger in Democratic states. Costco is a friend to labour. Unions hate Wal-Mart." The differences are based on more than ideology. Each retailer has a stake in the election's outcome in areas from healthcare to the minimum wage to the way unions can organise workforces. Kerry pledges to induce more employers to insure workers with a $257 billion proposal calling for the government to pay most so-called catastrophic healthcare costs - but only for companies that provide comprehensive coverage. He'd raise the minimum wage and make it easier for workers to join unions. Those policies may benefit Costco and hurt Wal-Mart. Costco offers comprehensive health insurance to most of its 78 000 US employees, making it eligible for Kerry's plan. That may cut 10 percent off its annual healthcare premiums. Wal-Mart's health plan for its 1.3 million US workers is probably not broad enough to qualify for the savings as fewer than half of its employees are enrolled in the company plan. Costco wouldn't have to raise salaries with Kerry's proposal to increase the minimum wage to $7 an hour from $5.15. The lowest wage it pays - $10 an hour - is still higher than Wal-Mart's average wage of $9.96. The 1.4 million-strong Teamsters Union said its workers at Costco had the "best retail contracts" in the US. -------------------------------------------------------------------------------- © Business Report 2004. All rights reserved. busrep.co.za