As we wait for the D.C. Council hearing—-scheduled for 10 a.m., and set to include a final vote on the living wage bill—-to get underway, let’s take a look at a snapshot of the debate over the legislation, which would require retailers in excess of 75,000 square feet whose parent companies make at least $1 billion per year to pay a living wage of $12.50 an hour. Walmart has threatened to cancel at least three of its planned D.C. stores if the bill becomes law.
This debate is between ex-Mayor for Life and current Ward 8 Councilmember Marion Barry on one side, and Walmart spokesman Steve Restivo on the other. It begins with a flurry of tweets from Barry:
Walmart’s annual PROFIT: $15.7 BILLION. DC’s min wage $8.25 proposed living wage $11.75 (3.50 difference). Min wage soon 2 go $10 4 every1
— Marion S. Barry, Jr. (@marionbarryjr) July 10, 2013
Out of a $15.7 BILLION PROFIT, should Walmart find a way to help increase wages to where their workers can survive or just focus on mo$mo$? — Marion S. Barry, Jr. (@marionbarryjr) July 10, 2013
NO ONE can live in DC on $8.25 hour working full time. Housing is too expensive. People are spending 60%+ of NI on just on housing alone.
— Marion S. Barry, Jr. (@marionbarryjr) July 10, 2013
Big business that make more $15BILLION in PROFIT should show genuine concern by decent pay 2 employees,their true #1 asset ¬ be so greedy — Marion S. Barry, Jr. (@marionbarryjr) July 10, 2013
Don’t say: Oh I won’t be able to make my full $15 BILLION+ in PROFITS this yr because I had to pay some workers $3.50+/hr so I’m leaving.
— Marion S. Barry, Jr. (@marionbarryjr) July 10, 2013
Restivo responds with the following email:
Saw Councilman Barry’s tweets regarding profit…
PROFIT PER EMPLOYEE
1. Exxon Mobil, $510,000
2. Apple, $353,041
3. CVS Caremark, $23,568
4. Home Depot, $13,338
5. McDonald’s, $12,420/employee
6. Nordstrom, $12,049
7. Kohl’s, $11,951
8. Dollar General, $10,527
9. Dillard’s, $10,222
10. Family Dollar Stores, $9,595
11. Starbucks, $8,648
12. J.C. Penney, -$8,491
13. Target, $8,307
14. Wal-Mart Stores, $7,726
Restivo points out regularly that lawmakers sometimes fail to recognize the difference between revenue and profits, and that a company that grosses unfathomable sums of money doesn’t necessarily have a wide profit margin per employee. That said, if Walmart’s per-employee profit is $7,726, that means the company can afford to pay each employee $7,725 more and still make a (very slim) profit. And because the living wage only amounts to $26,000 per year, minus benefits, for a 40-hours-a-week employee, that in turn implies that as long as the company is currently planning to pay its starting workers at least $18,275, it can probably pay the living wage and still be profitable.