Setting the Record Straight

The following statement, titled "Setting the Record Straight," was issued by Wal-Mart Stores as part of its campaign against a unionizing drive by the United Food and Commercial Workers union in Canada:

SET THE RECORD STRAIGHT THE TOP SIX ALLEGATIONS MADE ABOUT WAL-MART FOLLOWED BY THE FACTS (updated, Oct. 2004)

1. "Wal-Mart destroys small businesses and downtowns."

Not True. Here are the Facts: In June 2002 Ryerson University published an independent study examining Wal-Mart's economic impact on Canadian communities. The study, "The Economic Impact of Wal-Mart Stores," covered a five-year period and concluded -- after extensive analysis -- that Wal-Mart has not put other retailers out of business and in many cases has increased sales at neighbouring merchants across Canada.

As further evidence, in October 2004 a nationwide survey of close to 2,000 Canadian small-business owners found that the majority of small businesses in Canada are not negatively impacted by large stores like Wal-Mart. The survey was commissioned by CIBC and conducted by Decima Research. Key findings were as follows: 53% of Canadian small businesses said they do not compete with big box stores like Wal-Mart; 26% said big box stores have no impact on their business; 5% said big box stores like Wal-Mart actually have a positive impact on their business, and only 16% said big box stores have a negative impact on their business. Finally, since 2000 more than 100 Canadian communities have lobbied or petitioned for a Wal-Mart of their own.

2. "Wal-Mart products are manufactured under sweatshop conditions."

Not True. Here are the Facts: Wal-Mart enforces one of the strictest vendor codes of conduct in the retail industry worldwide. The code requires all Wal-Mart suppliers to maintain humane workplace conditions, without exception. Each year Wal-Mart's North American operations spend more than $40 million to ensure suppliers and their factories around the world comply with Wal-Mart's standards for workplace ethics. In particular, Wal-Mart will not tolerate the use of child labour, forced labour, or discrimination in the manufacture of any products sold in its stores.

3. "Wal-Mart is an American company that does nothing to support Canada."

Not True. Here are the Facts: Wal-Mart Canada employs more than 65,000 Canadians and is a major contributor to the economic health of Canada. Since 1994 the company has injected more than $2 billion directly into the Canadian economy through the construction of new stores. Wal-Mart Canada does business with more than 6,000 Canadian suppliers and last year alone made payments of close to $8 billion to these Canadian companies. Wal-Mart has also created more than 45,000 permanent Canadian jobs since 1994. …/2

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4. "Wal-Mart does nothing to support the community."

Not True. Here are the Facts: Ever week in Canada, Wal-Mart contributes more than $135,000 to Canadian charities. Last year alone, the company contributed more than $7.1 million to charities across the country.

In fact, Wal-Mart is one of the biggest contributors to Canadian charities through the Wal-Mart Good Works program. Under the program Wal-Mart Canada has donated more than $40 million to Canadian charities since 1994 through the following 10 initiatives:

· Canadian Children's Hospitals (Children's Miracle Network) · Breakfast for Learning (School Breakfast Programs) · Local Matching Grant Program · Adopt a School Program · Local Sports Team Sponsorships · Missing Children's Program · Code Adam Child Recovery Program · Scholarship Program · Canadian WW II Memorial Campaign · Disaster Relief Program

5. "Wal-Mart will provide "dead-end" poor-quality jobs."

Not True. Here are the Facts: Wal-Mart has been consistently ranked the best retailer to work for in Canada. (In 2002 and 2004 by international human-resources firm Hewitt Associates & Report on Business Magazine.)

In the same ranking, Wal-Mart has been named the number-two company in Canada for Best Career Opportunities, the number-three company for Best Work Life Balance, and the number-five company for Best Managers.

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6. "Wal-Mart will destroy more jobs than it will create in the community."

Not True. Here are the Facts: When Wal-Mart Canada opens a store in a new community there is an increase -- not a decrease -- in the total number of jobs in that community, usually at least 200 new construction jobs and approximately 200 new permanent store jobs.

In May, 2000, Marshall University in the United States released an independent study into Wal-Mart's impact on local workforces over a seven-year period. The study concluded that Wal-Mart boosts employment overall in the local workforce of a community and does not lead to a decrease in the number of jobs.

For further information please contact: Andrew Pelletier Director of Corporate Affairs Wal-Mart Canada Corp. 905 821-2111, ext. 4585 apellet@wal-mart.com