Loading...
The Rural Voice, 2004-01, Page 8BARN RENOVATIONS • Renovations to farm buildings • Concrete Work • Manure Tanks • Using a Bobcat Skid Steer w/hydraulic hammer, bucket, six -way blade & backhoe BEUERMANN CONSTRUCTION R.R. #5 BRUSSELS 519-887-9598 or 519-887-8447 LESLIE HAWKEN & SON Custom Manufacturing LIVESTOCK & FARM EQUIPMENT iiiww 4. Round Bale Feeder minim --.. --„"miall".1111111111 MI .li ,. a Self Standing Yard Divider For the best quality and service - Call Jim Hawken RR #3 Markdale 519-986-2507 4 THE RURAL VOICE Keith Roulston Having the bullg on hour side Keith Roulston is editor and publisher of The Rural Voice. He lives near Blyth, ON. There's a scene in one of my favourite Christmas movies that strikes me as true. not just from my own childhood memories. but from experience today. The young hero of A Christmas Story and his friends are terrorized on their way home from school each day by a bigger, older boy and his shrimpy sidekick. The bully is frightening but the sidekick is despicable because he doesn't have the nerve to be a bully on his own but can do vicious things because he's always got the big guy at his side. While few of us would want to be identified with that slimy sidekick, the sad reality is many people are cozying up to big bullies these days. In the tough realities of the modern economy, people want to be on the side of the people with clout. Take shoppers, for instance. The biggest clout belongs to Wal-Mart with its $245 billion in annual sales and it is reshaping, not just our local main streets, but the world economy. As consumers buy into the idea that they owe loyalty to no one but their own pocket book, Wal-Mart is the standard-bearer for the new reality of modern business. Even before Wal- Mart entered Canada, the threat of its arrival was reshaping commerce in the country, at least partly helping to bury the venerable T. Eaton company. (Back when A Christmas Story was set in the late 1940s who could have imagined Eaton's, the symbol of wealth and power in Canada, would one day be bankrupt.) Loblaws, part of George Weston Limited, one of the world's biggest food companies, is busy restructuring preparing for the entry of Wal-Mart into the food industry. Few shoppers think of what they are part of when they side with Wal- Mart. Since 2001 the U.S. has lost 2.8 million jobs, many of them to companies that make products for North American markets at Third World wage costs. Wal-Mart alone accounts for 10 per cent of U.S. imports from China. There's a saying in consumer manufacturing that the second worst thing a manufacturer can do is sign a Wal-Mart contract, so stringent are its; cost demands. The one thing worse is failing to sign a contract with Wal - Man because being on its shelves is nearly essential for success. To get the low prices huge companies like Wal-Mart want. suppliers must cut costs to the bone and that means putting the squeeze on their suppliers. So, for instance, if Wal-Mart enters the food business in a big way, expect pressure for farm- ers to take less for their products. Expect Loblaws also to want cheaper prices in order to be able to compete. If. for instance, these companies feel the cost of milk or eggs are too high for their liking, expect them to start pressuring governments to abandon supply management and allow imports from the lowest -cost source. If you're under contract to a packing company. expect pressure to lower your costs. If you're a farmer being squeezed, don't expect much sympathy from consumers. "At Wal-Mart, the customer is king, everybody else be damned: competitprs, employers and the domestic manufacturing base," says U.S. business columnist Daniel Gross. "Everything Wal-Mart does — particularly its low prices — is done in the name of slavish devotion to consumer demand. And every day, millions of Americans (and Cana- dians) ratify Wal -Mart's strategy by shopping there. Stores don't kill economies, consumers do." The problem with sucking up to the bully, as in A Christmas Story, is the bully doesn't really need you. Similarly it's nice to be on the side of the powerful whether buying cheap Christmas presents or selling your farm products but what happens when the same "me -first" philosophy is turned against you?0