Reuters has an article about how citigroup has changed its advice from 'buy' to 'hold' for Wal-Mart stock because of the potential for Congress to pass the Employee Free Choice Act. Citi speculates that the new law would lead to a unionized Wal-Mart which would lead to higher labor costs and lower profits. We're not totally sure the Employee Free Choice Act would lead to unionization. Wal-Mart has proven that they respond quickly and viciously when they feel there is a threat of unionization. They fire or threaten employees, forestall organizing by any means necessary (including spying on associates) and simply refuse to negotiate with workers if they do choose a union. They've gone as far as simply shutting down stores to avoid giving their employees a voice on the job.

More to the point, however, is that Wal-Mart isn't going to be irreparably damaged if they have to pay their employees a little better and provide them with adequate benefits. In fact, a study done at the University of California at Berkeley's Center for Labor Research and Education showed that Wal-Mart could raise it's minimum wage for all 1.4 million American employees to $10 an hour and it would have little effect on the company. Likewise, Wal-Mart could easily provide adequate and affordable health care with little effect on their profits. Wal-Mart made over $12 billion in profits last year. They can afford to take care of their employees the way they say they do.