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Walmart Store Closing-No Profitability or Union Formation

Walmart Closes Store in Canada

The above article discusses whether Walmart had the right to close their store in Quebec, Canada. A Canada high court ruled that Walmart did have the right to close its store. The reason the issue was brought to court is because this Walmart was the first Walmart in North America to form a union. The union was formed seven month before the close of the store. Pelletier, a Walmart associate, said that the Walmart was not closed down due to union membership but due to the nonprofitability of the store.

My question about this article is whether Walmart really closed down their store due to nonprofitability or whether it was due to the union formation. It is known that Walmart is not a company that supports unions and that they will even fire employees who discuss unions. I think its very ironic that the one store that forms a union happens to close. In general, Walmart does not provide the best for their employees which may be why Walmart was uncomfortable with the formation of a union at their store. Although the court ruled the opposite way, I can’t help but think that Walmart took the unethical route and closed the store due to union formation

Categories: Uncategorized
  1. bolong32
    December 1, 2009 at 3:02 am

    The closing of the Walmart store in Quebec was just a strategic move on the part of Walmart. Walmart CEO Mike Duke has said that the Walmart business model of low prices will fail with paying higher wages the unions seek. This ruling in the Canadian Court system has just provided support for walmart on that arguement. I agree that the store closing was unethical but with the court siding with Walmart, they now have a very good defense in future situations.

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