Walmart threatens to scrap plans for 3 DC stores if living wage bill passes

Potentially big business news this afternoon out of D.C.:

Per @nbcwashington – Walmart threatening to cancel plans for 3 new stores in Washington DC, b/c of dispute w/ city over minimum wages

— Scott MacFarlane (@MacFarlaneNews) July 9, 2013

The D.C. Council is set to vote tomorrow on proposed “living wage” legislation that would affect large retailers like Walmart.

More from the Washington Post:

Alex Barron, a regional general manager for Wal-Mart U.S., wrote in a Washington Post op-ed piece that the proposed wage requirement “would clearly inject unforeseen costs into the equation that will create an uneven playing field and challenge the fiscal health of our planned D.C. stores.”

As a result, Barron said, the company “will not pursue” stores at three locations where construction has yet to begin — two in Ward 7 and one in Ward 5. He added that the legislation, if passed, will also “jeopardize” three stores whose construction is already underway pending “financial and legal implications.”

The bill as currently written would require retailers with corporate sales of a billion dollars or more and operating in spaces 75,000 square feet or larger to pay their employees no less than $12.50 an hour. The District’s current minimum wage is $8.25.

Many on the Left are insisting that D.C.’s minimum wage should be raised, and they’re both rejoicing at this news and slamming Walmart:

https://twitter.com/msto/status/354706635035394049

If @Walmart will pull out of DC over a forced $12.50 wage, then let them pack their bags and run away crying. #LRAA

— Chris Stergalas (@cstergalas) July 9, 2013

https://twitter.com/jayaustn/status/354705947207270404

Wal-Mart has threatened to pull plans to move into DC if living wage bill passes. That could be the best thing ever. #raisethewage #occupy

— Karim Walker #JusticeForAhmaudArbery ??️‍? (@shift_in2_turbo) July 9, 2013

Proponents of the living wage bill aren’t seeing the whole picture. As warm and fuzzy as it might make them feel to demand that workers’ pay be increased, what they’re forgetting — or ignoring — is that raising wages costs money. At some point for businesses, the costs outweigh the benefits. And higher costs for employers ultimately get passed on to consumers in the form of higher prices and employees in the form of job loss. Is that what the Left wants to push for?

@AdamTragone I can only imagine the yrs it took to convince Wal-Mart that they should build in DC. then rug pulled out from under them.

— Sean Hackbarth (@seanhackbarth) July 9, 2013

If the bill becomes law, Walmart might wind up being one of many potential job providers discouraged from doing business in D.C. And then what?

Next thing you know DC will pass a law requiring Wal-Mart to open stores there.

— Debbie, BS, MS, MS, MS, PMP, AA, BA (@mosesmosesmoses) July 9, 2013

‘Round and ’round we go.

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