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Leveraged Sellout - of WalMart | |||||||||||||||||
With a nod to the Wall Street trend of the 80's, the Leveraged Buyout (LBO), I propose the Leveraged Sellout (LSO) By using mechanisms available in the derivatives market it should be possible for an 'investor' to make a profit while emboldening employees of a publicly traded company to seek equitable treatment (when it does not currently exist) from an employer. Wal-Mart for example: 1. A deep pocketed "investor" (George Soros?) or group of investors sell Wal-Mart stock short (or buy puts). 2. Workers at a store are assured that if they unionize and the store is subsequently closed or they are fired (as is currently assumed/feared) then the Union (backed by the above investors) will have the funds to support them (probably about $30K/head, which I'm assuming is a good deal more than what Unions could afford to offer now). 3. Employees freely Unionize. 4a. Wal-Mart closes a store and the investors pay out the employees. Repeat at other stores. 4b. Wal-Mart capitulates to demands of now unionized "associates" and provides improved compensation/benefits. 5. Profit decreases. Stock Price Goes down. Sellers profit. Bonus- Bill Lerach argues class action against WM on behalf of shareholders/employees for using coercive tactics to prevent formation of unions which led to inflated stock prices. This oversimplified example doesn't actually have to play out at all, to have its intended effect. A well placed article by professor/journalists with credibility (nudge nudge Ian and Barry) and/or blustering by a wealthy and 'just crazy enough' Billionaire should have the same effect. [Is it considered inside information if you notify me before this plan gets published in the WSJ?]
krup, Oct 09 2003
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Personally, I'm for anything that destroys Wal-Mart. I wouldn't worry too much about the importance of unions for their employees. I would worry about the millions of US jobs that have been lost to off-shore competition. If the unions had any balls they would boycott Wal-Mart for the damage that they have inflicted on the entire American workforce. Wal-Mart's motto of "We Sell for Less",will also include "Your Welfare Checks Are Worth More Here". Go ahead America......Shop for less, support the company that builds wealth by destroying the American Way.
Wouldn't this basically amount to stock manipulation? Isn't that illegal?
While middle class liberals would benefit by the destruction of wall-mart and the resurgence of nice courner botiques in which they can spend their time and money, the poor would suffer. Wall-Mart's efficiency has increased the purchasing power of poor Americans and created jobs throughout the country. Maybe we should get rid of NAFTA, but then who would tell the people in the service sector including wall-mart workers that they have to go back to work in dangerous factories.
Employees at walmart are getting ripped off, right?
I think that Walmart should add a gratuity line on their credit card signature receipts. That way, if you're a walmart hater, you can put your money where your mouth is. Help these poor people out, please! Walmart, although they do have a money press, will not share the money they're making with anyone!
Before putting my foot in my mouth. Okay, I'll do it anyway. Business diversity is as needed as the number of different types of jobs in a local area. Before the old gent that used to own Wal-Mart died, he had standing instructions that if a local Wal-Mart could buy product for less locally, then buy they did. The local Wal-Mart actually supported local business. If the an item was about to be dissappear from the shelf, he would have his manager out buying from local businesses to stock the shelves.
Then he died. Now Wal-Mart has the same problems most large businesses have. Managers are always trying to get other people to do their work. And managers are always creating layers of managment to protect themselves. As a result, stupid waste and hostile relations.