Whole Foods drama continues: Unions join in fight against CEO
Filed under: Company News, People, Healthcare
In the latest move in the John Mackey/Whole Foods (WFMI) health care brouhaha, two unions have joined in the chorus of voices opposing the embattled CEO. The Change to Win (CtW) investment group and the United Food and Commercial Workers Union (UFCW) have released statements attacking Mackey and calling for a boycott of the store.This ongoing drama traces its roots to an op-ed article that Mackey published in The Wall Street Journal. Endorsing a cocktail of tax breaks and charity-based initiatives, he came out strongly against the universal health care policy that Obama (and, not coincidentally, many of his customers) endorse. Needless to say, many of Whole Foods' patrons felt stung by what they perceived as a corporate betrayal of their core policies. In addition to a torrent of attacks across the internet, this has led to a growing call for a boycott of the company.
In some interesting ways, this issue mirrors the battle between liberals and libertarians. Whole Foods' target demographic tends to be fairly liberal and, as such, is attracted to the company's socially-aware corporate governance as much as its high-quality food. From its decision to install fuel-cell generators in some of its stores to its commitment to philanthropy, many of While Foods' policies are designed to make its customers feel good about spending money there.
And then there's the way that the company treats its workers. Whole Foods' employees are paid well above the market average, have full health coverage, and are reimbursed for their gym memberships. The company offers same-sex partner benefits, allows telecommuting for many of its workers, and has a strict nondiscrimination policy. In short, it's everything that a good liberal could want in a supermarket.
Of course, all these benefits and donations come at a price, and Whole Foods passes much of this on to its consumers. But customers who are willing to pay a guilt premium for free-trade radicchio are likely to be the same sort of forward-looking, society-oriented liberals who support universal health care.
Mackey, on the other hand, is a self-identified libertarian, which means that his politics tend more toward self-policing and a small role for government programs. In the case of Whole Foods, this perspective generally dovetails with the beliefs of his customers, in so far as responsible corporate stewardship and pro-employee policies are the kinds of things that both groups could support. However, big government solutions -- like universal health care that is funded by increased taxes -- is where liberals and libertarians part ways.
From a business perspective, as far as Whole Foods is concerned, the politics of its customers are probably more important than the politics of its CEO. As previous battles against Bolthouse Farms and Coors (TAP) demonstrate, controversy and foodstuffs don't mix, particularly when one's target audience is noted for its political awareness. Given that Whole Foods' market position is inseparable from its socially activist image, Mackey's op-ed seems like an exercise in self-defeat.
Beyond this, CtW and UFCW's decision to jump on the boycott bandwagon seems more than a little disingenuous. As Mackey has made very clear in the past, he is firmly anti-union; although Whole Foods reached a compromise with organized labor back in March, it is fair to say that relations between the two sides are probably strained. In this context, it seems likely that the union boycott has little to do with health care and everything to do with Mackey's anti-union policies.
If Whole Foods' customers are really liberal, then they will, perhaps, remember that true liberalism endorses the free flow of information, ideas, and perspectives. While they may not agree with Mackey's statements, their eagerness to censor him has effectively transformed righteous anger into bald-faced hypocrisy and bad business into bad politics. Even if Mackey isn't better than that, his customers certainly should be.
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Reader Comments (Page 1 of 106)
8-27-2009 @ 7:17PM
countrybumpkin said...
So the unions have joined the silly fight. What a joke for the unions.
Reply
8-27-2009 @ 7:13PM
jangeekli said...
I live in Boca Raton, Florida, a very liberal area. The Whole Foods here was so busy when it opened that they quickly doubled the size of the store, which at the time made it one of the biggest stores in the chain. When I heard the comments from their CEO, against the idea of the expansion of health care, nobody had to tell me what to do. I never spend any of my money at a business owned by anyone who has what I consider to be warped views. There is a market here similar to Whole Foods, called Greenwise Market, and since I've become a customer there I have started running into friends of mine who have made the same switch we did. It was nothing formal and I haven't tried to change anyone else's shopping habits but others feel the same way I do.
Unlike Mackey, I hope the plan that Obama was elected to implement becomes law. I am someone who can't get insurance because of a preexisting condition I have. I am lucky because I can afford any medical care I need, but I care about others and know how badly this is needed.
Reply
8-28-2009 @ 2:53PM
roger said...
It's liberal morons like you that are ruining this country. You won't shop at his stores because he has a different opinion than you. How forward thinking. Government sponsored helath care is a bad idea that will cost the working people of this country trillions of dollars to cover the non working people of this country. Just because you listen to all the Hollywood idiots that think they run the world doesn't make you knowledgable about anything. If you stopped buying products from every company that has a CEO that doesn't want universal health care, you wouldn't be able to buy very much.
8-28-2009 @ 2:30PM
Nancy said...
Jangeekli,
I applaud you for standing up for the little people on the insurance situation. A liberal in Boca???!!!!! in a Republican state!!!! I live in Orlando and am surrounded by Rep that are sooo fearful of a black man running the country, that they have to make up lies about "death squads".
8-28-2009 @ 2:36PM
Redhed said...
Because Mackey doesn't agree with the govt's proposed health plan BUT he gives his employees a full health plan, above average wages, is non-discriminatory, and believes in preventative medicine, you are are BOYCOTTING the store?! You have got to be kidding me. Obama's health plan is just a start, and we cannot jump into something that is being pushed thru too quickly. Yes--this country definitely needs help with it's medical care, but trust me--the insurance companies who make 40+ million in profits each year are the first places we must look to change along with innumerable other areas. Let's change this health care problem by being smart--not by being judgmental.
8-28-2009 @ 2:38PM
snarkybigbyte said...
Your story smells like rotten fish. Planted B.S.
Go do your brainwashing elsewhere.
8-28-2009 @ 7:32PM
Kristi said...
I agree that insurances should not be able to deny pre-existing conditions.
But that is the only part of Obama's choices I agree with.
But regardless of your beliefs on that topic- what about the other good Whole Foods does? That all falls by the wayside for one comment on his *personal political* beliefs- not his business practices and things that affect the bottom line of all the people that work for him?
The problem I have with things like this is that he is entitled to his political beliefs. His company does good things for the people in the communities they place stores in. They do wonderful things for their workers. Leaving because of the political beliefs of one man in the company is a slap in the face to all of those people they employ and charitably support.
8-28-2009 @ 2:42PM
C J Dunmore said...
Whole Foods customers are not the brightest to begin with. Slavishly following a boycott is rather predictable for these lemmings.
8-28-2009 @ 3:43PM
Interested said...
So, you know the policies and views of every store you frequent and every product you buy?
8-28-2009 @ 3:31PM
knewton said...
I am actually going to start shopping there because of the CEO comments!
8-28-2009 @ 2:52PM
Donna said...
Thank goodness for people with different opinions. The CEO should be applauded for having the American spirit to go against what he sees as wrong. If you choose not to shop there that's your right. As a conservative I will make it my business to shop at Whole Foods now.
8-28-2009 @ 2:57PM
Live Free said...
I have never shopped at a Whole Foods untill now. I will give all of my business to Whole Foods. Because the CEO you are bad mouthing gives his entire salery to charity and only recieves $1 in pay. He also donates significante amouts of money to charity and gives his employee's a lot of benifits including same sex medical benifits and maternity leave etc.
Your a closed minded manipulayive idiot.
8-28-2009 @ 3:17PM
Jan said...
GOD BLESS YOU jangeekli !!!!
8-28-2009 @ 3:27PM
Ralph said...
Whole Foods' employees are paid well above the market average, have full health coverage, and are reimbursed for their gym memberships. The company offers same-sex partner benefits, allows telecommuting for many of its workers, and has a strict nondiscrimination policy. And the liberals are about to make sure all of this ends by taking their business elsewhere? What happened to freedom of thought, speech, the press, etc? What a bunch of morons....
8-28-2009 @ 3:03PM
Jennifer said...
"Unlike Mackey, I hope the plan that Obama was elected to implement becomes law. I am someone who can't get insurance because of a preexisting condition I have. I am lucky because I can afford any medical care I need, but I care about others and know how badly this is needed."______________
Balderdash. If you cared about others you wouldn't feel the need to steal from their families to pay for YOUR health care when you already admitted you can afford to pay for your own health care youself. You and your ilk should be ashamed of yourself for being so selfish.
8-28-2009 @ 3:34PM
Ruth said...
Bravo, I could not have said it better myself. You are truly a compassionate person. I am so glad to see there are other people out there who feel the same way me and my husband do. We are two seniors in our 60's who can't believe the selfishness of people. It turns my stomach and we are so disgusted watching these town hall meetings. I pray and hope our dear President Obama is able to pull this through.
8-28-2009 @ 3:05PM
yasminaspeaks said...
Wholefoods provides healthcare to their employees.... dummy.... perhaps the CEO is REALLY looking after the best interests of his employees, because HE KNOWS as to all educated people, that government run healthcare will be reduce the access to quality healthcare that his employees get.
I don't shop at Wholefoods all the time, because of the expense. But NOW I WILL...
I will buy ALL my food from Wholefoods in support of this courageous CEO who dared to defy the liberal facists in this country and not fold in face of their terrorists tactics...
SUPPORT WHOLEFOODS..... LET FREEDOM RING!!!
8-28-2009 @ 3:12PM
macl09 said...
What a sad day this is when we can no longer voice our beliefs without fear of reprisal.
Should you not respect this person - your fellow citizen - for stating from his heart how he feels?
Must we all believe, in all things, as you do?
No dissension, tow the party line or else.
Where does that leave us as a country? And where does it end?
Sounds scarily familiar to me - wasn't that how Hitler ran his "campaign"?
8-28-2009 @ 3:07PM
carl b said...
You are a liberal and you have nerve to say someobody else has warped views? such a hypocrite......
8-28-2009 @ 3:08PM
Michael said...
As a former Democrat turn Republican, now Libertarian, I finded unbelievebly offensive that Big Brother Washington has the nerve to tell me when, where, what, and why concerning health care. America has always been a country where the individual has been big and the governmnent small. Only the insecure and those who did not plan adequately for their futures, perhaps thirty million out of three hundred million need a hand out. Heaven help you poor ignorant basket cases in such dire need of charity. I sacrificed for my future. Now, I pay my own way.