Wal-Mart cut by Citigroup on unionization worries
With the introduction of Employee Free Choice Act in the House as early today, investors are concerned that Wal-Mart could be the primary target of unionization efforts should the bill pass. Some speculate that unionized labor at Wal-Mart would mean higher labor costs, less flexibility, and an overall loss of competitiveness. Wal-Mart has faired better than its peers amid the global economic recession, but worry over the legislation combined with falling demand and the high unemployment rate is now hanging over the retail giant.
See "Wal-Mart cut by Citigroup on unionization worries", Andria Cheng, Market Watch, March 9, 2009