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The Hill - May 10, 2005
CBC stands by Wal-Mart
By Hans Nichols
The Congressional Black Caucus (CBC) has flatly rejected a major labor union's call to cut ties to Wal-Mart lobbyists and executives who have been canvassing the Capitol in search of new friends and allies.
Black lawmakers say they will continue to listen to Wal-Mart - as they would any other group interested in building a relationship - and will not be bullied by what they regard as the Service Employees International Union's (SEIU) inappropriate attempt to "put the CBC in its place" with instructions to shun the world's largest employer.
This SEIU-CBC dispute comes at a time when Wal-Mart is significantly boosting its political contributions to Democrats.
In a letter sent to CBC last week, Ann Burger, SEIU's treasurer, stated, "The SEIU is expressing our displeasure that the Congressional Black Caucus is giving Wal-Mart an opportunity to fashion a false image that they are friends of African Americans and working people generally."
The letter lists of a litany of alleged labor misdeeds by Wal-Mart before reciting SEIU's records of improving wages and living standards for "people of color."
"That's the kind of economic development that we have always collaborated on with members of the CBC," wrote Burger.
Several black lawmakers took umbrage at the tone of SEIU's letter and warned it would sour their relationship with labor, with others saying they would continue to have an open door policy with both SEIU and Wal-Mart.
"The CBC has been one of the most loyal supporters of labor. But we reserve the right to have dialog with any company that's doing business in the African-American community," said Rep. Al Wynn (D-Md.)
Channeling Lord Palmertson, Wynn added, "We have no permanent friends, no permanent allies, only permanent interest."
"It's really an attempt to put CBC members in their place," said Lanier Avant, chief of staff to Rep. Bennie Thompson (D-Miss.).
"No group of members of Congress has a stronger labor record than the CBC and for this kind of letter to go strictly to black lawmakers is a slap in the face," he said, noting that four CBCers have perfect voting records with the AFL-CIO and another 21 are above the 95 percent mark.
A senior CBC aide confirmed that SEIU's letter was not received well by many lawmakers.
"They want to pick our friends for us and that's not going to happen," said the aide.
Last October, Wal-Mart president Lee Scott hosted more than a dozen black lawmakers at an off-campus lunch, and explained his company's side of the story on a range of a range of labor issues.
"They have made a consistent and concerted effort to educate members of Congress and to talk to the CBC on how they do business," said the senior CBC aide.
"Lobbyists have made it their business to get to know our members," the staffer said, adding that Wal-Mart's hired guns do not want the company to have be saddled with a reputation in Washington for being aloof and above beltway realities.
"They are saying, 'If we don't tell our story, someone else is going to tell our story," said the aide.
In early March, Wal-Mart revamped its DC lobbying shop and its PAC has become much more active in the past few cycles, as company executives seek to craft a proactive strategy to counter the impressions that the corporate behemoth exploits its workers.
"Like most companies, there's always room for improvements," said Kimberly Woodard, director of Federal Government relations for Wal-Mart, adding that the company wants to engage members of Congress on how to make improve their company.
That outreach has included a threefold increase in PAC contributions and greater parity in giving between Democrats and Republican candidates.
Wal-Mart's PAC donated nearly $1.7 million in the last campaign cycle, with four times as much going to Republican candidates. Those numbers are noticeably higher than the $1.2 million the PAC disbursed in 2002 and dwarf the $455,000 in contributions in 2000.
This cycle, the PAC appears to be striving for greater balance between Republicans and Democrat, with 18 of its first 31 checks heading to House and Senate Democrats.
"We're the largest employers of African Americans so it makes sense that we want to develop a relationship with members of the CBC," said Woodard.
Wal-Mart has also discovered a newfound interest in the Congressional Black Caucus Foundation (CBCF).
"It's been a long term process," said William Jefferson (D-La.) a former CBC chairman and the current head of the CBCF, noting that Wal-Mart began its support of the foundation with $50,000 several years ago and now gives $100,000 annually.
Wynn, who chairs the CBC's PAC, said, "As chairman of the PAC I would hope and expect that companies that do business in the African American community would supporter the CBC PAC, the foundation and the institute, And we appreciate the support."