Brewer councilor blasts Wal-Mart

BREWER — Like the legendary Don Quixote, Brewer City Councilor Donald LaGrange has mounted a steed and is taking on the giants. But the giants he thinks need tougher controls are firms such as Irving Oil and Wal-Mart.

He requested that fellow councilors Tuesday night ask their state legislators to push a bill aimed at controlling the influx of national chains into the state, where, he says, they create financial burdens for the local business community.

Councilors wanted more time to consider his proposal, so action was postponed until the council’s next meeting.

LaGrange told the Bangor Daily News he was concerned about unfair business practices.

He said in the past competition did not mean putting other businesses out of business, which is what Wal-Mart has been doing in Maine.

LaGrange said the measure should be an offshoot from the Fair Market Share Bill, which is aimed at the Irving Oil Co.’s expansion into Maine.

The new measure would be aimed at all large chains, but primarily at Wal-Mart, because of its aggressive entry into this state and the financial turmoil it created for locally owned businesses, said the councilor.

“It should be suggested, due to the extensive and diverse goods and services offered at Wal-Mart, that they not be allowed to expand into this state, or continue its business operations in this state, if their market share is more than 10 percent of the state’s total retail goods and services,” said LaGrange.

He said this already has been done in Vermont, because the Vermont Legislature put local business interests ahead of out-of-state corporate interests.

“Once a retail hub for eastern and northern Maine, the greater Bangor-Brewer area has fallen prey to the growth of Wal-Mart in surrounding communities, reducing the influx of business activity into our area. Not to mention the unfair competition that Wal-Mart places on the local businesses in these surrrounding communities, the trickle down effect of the lack of traffic into the Bangor-Brewer market has definitely hurt the balance sheet for our own local business,” said LaGrange.

LaGrange said the wage structure of the employees at Wal-Mart is insignificant per employee to help the overall economy, whereas a locally owned business would generate more disposable income to be used in the local economy.

Wal-Mart takes its profits out of the state. The local mom and pop businesses “tend to keep the profits in our area,” he said.

“Ultimately, the state of Maine, as well as the residents of Brewer, would benefit from a healthier overall economy by limiting the activities of this lion,” said LaGrange. “Small business is, or would have been if Wal-Mart continues its expansion, the cornerstone for every local community. This is the one thing, that we as city overseers, can do to help our local business. Therefore I strongly urge the council of Brewer to persuade our legislators for a relief measure to rebuild our area economy.”

Stewart Bunker, manager of the Bangor Wal-Mart store, commenting on LaGrange’s proposal, said he disagreed that all profits go out of state. All employees associated with Wal-Mart are involved in the company’s profit-sharing program and get a percentage of the profits every year, money that stays in the community.

Bunker said before anyone criticizes the company salary and wage scale they had better check the fair market wage in the area. “He should check and see what we pay our folks,” said Bunker. He said Wal-Mart employees get the full range of benefits that most major companies now provide. He said he would compare the salaries they pay employees with any privately owned business in the city.

As to Wal-Mart putting others out of business he said, one need only to look at the diverse market in the Bangor area. “You have specialty stores, like Basket Works, the new book store coming in, Toys R Us. For a town this size, there is a vast array of retailers in the Bangor area. To single us out as the bad guy, I don’t think that’s fair.”

Bunker said it was tough to comment on a remark that compared them to an agressor. He said he viewed Wal-Mart as providing healthy competition. “We are giving the consumer the most for their dollar. I don’t think we are the dominant player in the area, but I’m not qualified to make that statement. That’s just my personal observation.”

As to other Wal-Mart stores in the state stemming the flow of customers to Bangor, Bunker said: “Who has the right to tell a person who lives in Millinocket or Corinna that they have to go to Bangor to do their shopping? People are free to go whereever they want.”

Bunker said he was proud of what the employees and company put back into the Bangor area community. The Bangor store annually contributes up to $50,000 to area charities. “That’s what burns me more than anything. That’s what they always take out of the equation.” Wal-Mart and Sam’s Club, which is another branch of the same company, combined, contribute more than $100,000 a year to the community.

Bunker said he felt that LaGrange was basing his comments on arguments that were first used against Wal-Mart stores four or five years ago that have since been found to be groundless.