DEAR EDITOR:
With the state recall election behind us, political energy is
now focused on upcoming local elections in November.
Of course, here in Gilroy, people never lost sight of this event
in the flurry of gubernatorial madness.
DEAR EDITOR:
With the state recall election behind us, political energy is now focused on upcoming local elections in November.
Of course, here in Gilroy, people never lost sight of this event in the flurry of gubernatorial madness.
One of the most talked about developments during this campaign season is the advent of Gilroy First!, a self-proclaimed non-partisan voter education group, that seems to devote all of its energies to attacking Wal-Mart.
It was discovered that this group is financially dependent on labor groups that exclusively endorsed union-friendly candidates who also are members of the Gilroy First! group. While Gilroy First! was hiding behind its glossy mailings and candidates’ forums, the community discovered it was not a non-partisan voter education group, as its literature insists.
A Gilroy Dispatch article from Sept. 16 revealed that “the group admits its origin stemmed from local meetings attended by union leaders concerned [about] a new Wal-Mart Supercenter.” So much for clean campaigning.
If the proposed Wal-Mart Supercenter in Pacheco Pass is going to be an election issue, then the candidates should be aware of the voters’ will on this topic.
Recent polling conducted in Gilroy on July 7 found that support for new large retail stores is stronger than ever. Gilroy residents also strongly support new city services, and want incoming or developing businesses to provide funds for these services, rather than increases in property taxes.
A Wal-Mart Supercenter is essential to achieving these goals. Tax revenues from the Supercenter and the Pacheco Pass Center would be used towards providing a new world-class EMT program and funding police and fire safety services. In fact, it is unlikely that the new fire station can be staffed without funds from the new Supercenter.
According to Gilroy First!, a main concern of its founding union members is the impact that a Supercenter will have on existing stores in the area.
Since a Supercenter will have a grocery department along with all of the traditional Wal-Mart departments, these members feared that it would run out local grocery stores. But past experiences show how local stores are helped by a Supercenter in town.
Using sales tax data from 1990-2001, research from a University of Iowa study found that annual sales in areas hosting a Wal-Mart Supercenter grew from 3 percent the first year to over 10 percent four years after the opening. Overall, the entry of a Supercenter into a town is a net gain for all businesses, including other supermarkets.
And not all grocery stores in Gilroy compete for the same customers. Local shops specialize in ethnic foods or unique products, and residents will continue to frequent these stores regardless of whether they also shop at a Supercenter. Research has found that businesses that sell goods or services other than what Wal-Mart offers can experience higher sales because of the customer spillover effect and their hard-earned customer loyalty.
Moreover, much of the debate around the proposed Wal-Mart Supercenter has focused on the soundness of giving economic incentives to businesses. What many critics of this public policy continue to ignore is that Wal-Mart, because it is an existing Gilroy business, is not receiving one penny of public subsidy.
So if Gilroy First! and its supporters want to continue to debate the merits of economic incentive policies, that’s fine, but they should not be allowed to use it as a front for their attacks on Wal-Mart.
In truth, these labor unions have always targeted Wal-Mart because store employees everywhere have repeatedly rebuffed their attempts to unionize the store. Wal-Mart associates are satisfied with working conditions and unions have never been able to gain ground. Full-time and part-time associates consistently receive competitive wages and numerous benefits.
In fact, one of the advantages of opening a Supercenter in Gilroy is that there will be even more job opportunities for local residents. The proposed store would employ more than 500 people, nearly double the 267 people employed at the current Gilroy Wal-Mart, all of whom will be offered jobs at the new store.
A Wal-Mart Supercenter will not only benefit potential employees, but local shoppers as well. There are always working families shopping in our aisles, and we are confident these families would appreciate being able to buy groceries at the same time at the low prices that make Wal-Mart Supercenters so popular. Wal-Mart has thrived and survived because it provides high-quality, low-cost options to shoppers who choose to support the store. Just like the upcoming election, being able to choose where you shop is the American way.
Amy Hill, Wal-Mart Regional Director Community Affairs
Submitted Thursday, Oct. 16 to ed****@****ic.com
