by ED FINKELSTEIN, Labor Tribune
April 21, 2005
(Reprinted with permission.)

It's the deep dark secret that everyone knew, but couldn't prove. Now a family feud at giant anti-union retailer Wal-Mart will shed some light on just how far the company is willing to go to bust unions trying to bring economic justice to its 1.6 million employees.

The existence of an illegal anti-union slush fund as part of a company program to suppress the democratic freedom of workers to make a choice for union representation at work came to light last week when Wal-Mart's Vice Chairman Thomas Coughlin, the second in command, told associates that he submitted personal expense reports to cover up operations of the illegal fund. He had just been ousted from the company's board of directors.

According to the Wall Street Journal, which broke the story, these revelations, if true, mean that Wal-Mart's anti-worker, anti-union program "would represent a criminal offense under the federal Taft-Hartley Act,"— a federal felony to pay employees to persuade coworkers to abandon support for union representation.

BRIBE CHARGES FILED
The United Food & Commercial Workers Union (UFCW) has filed unfair labor practice chargers with the National Labor Relations Board asking for an investigation of whether Wal-Mart "bribed" employees to block union activities. "Wal-Mart's actions seemingly involved the criminal misappropriation of company funds to create an illegal anti-union slush fund," the union said in filing its charges.

"The point of the UFCW filing this charge is simple," said UFCW Executive Vice President Bill McDonough. "The UFCW and the American people deserve to know what Wal-Mart knows about this 'union project' and when they knew it."

FAKE INVOICES TO COVER-UP?
The Journal said that Coughlin was forced out two weeks ago as vice chairman of Wal-Mart Stores Inc., allegedly for misappropriating company funds by turning in false expense reports that totaled between $100,000 and $500,000. Among the reports, hunting vacations, a $1,359 pair of custom-made alligator boots and a $2,590 dog pen for Coughlin's Arkansas home.

Under the headline, "A Wal-Mart Legend's Trail of Deceit," the Journal reported that evidence suggested Coughlin "had subordinates create fake invoices to get Wal-Mart to pay for his personal expenses involving dozens of transactions over more than five years."

The Journal said Coughlin "told several Wal-Mart associates that the money was actually being used for antiunion activities, including paying union staffers to tell him of pro-union workers in stores. . .the fake invoices. . . were simply a roundabout way of compensating him for out-of-pocket expenses in his anti-union campaign." Wal-Mart, of course, denies the charge.

LOTS OF GUILT TO GO AROUND
However, Wal-Mart's vehement anti-union attitude is no secret. Wal-Mart has already been found guilty of illegally spying, bribing with promotions, firing and intimidating workers.

"We are deeply disturbed by these allegations of Wal-Mart's anti-union activity," stated UFCW Executive Vice President and Director of Organizing Bill McDonough. "These are serious criminal offenses and cast Wal-Mart's systematic anti-worker activities on a much more sinister level. Wal-Mart should not try and cover up its activities but should do the right thing and make all of the documents public immediately."

In a letter accompanying its labor board charges, the UFCW said it suspected that Wal-Mart "spread bribes in stores whose workers were actively organizing but abruptly abandoned their activity" in 13 states. Wal-Mart has 1.6 million employees worldwide, 1.3 million in the U.S.

The UFCW called on the company to publicize all documents connected with the U.S. attorney's criminal probe of the Coughlin case. Coughlin has asked Wal-Mart for a copy of all the documents they submitted to authorities. They refused to provide them.