Clinton feels heat over Wal-Mart ties

New York senator trying to distance herself from chain

March 12, 2006|Beth Fouhy, Associated Press

NEW YORK -- With retailer Wal-Mart under fire for its labor and healthcare policies, one Democrat with ties to the company, Senator Hillary Rodham Clinton, has started feeling her share of the political heat.

Clinton served on Wal-Mart's board of directors for six years when her husband was governor of Arkansas. And the Rose Law Firm, where she was a partner, handled many of the Arkansas-based company's legal affairs.

Hillary Clinton had kind words for Wal-Mart as recently as 2004, when she told an audience at the convention of the National Retail Federation that her time on the board ''was a great experience in every respect."

But in recent months, as the company has become a target for Democratic activists, she has largely steered clear of any mention of Wal-Mart. And late last year, Clinton's reelection campaign returned a $5,000 contribution from Wal-Mart, citing ''serious differences with current company practices."

As Clinton sheds her Arkansas past and looks ahead to a possible 2008 presidential run, the Wal-Mart issue presents an exquisite dilemma: how to reconcile the political demands she faces today with her history at a company many consumers depend upon but many Democratic activists revile.

''The interesting question is not just Hillary Clinton's history at Wal-Mart, but why it's delicate for her to talk about Wal-Mart," said Charles Fishman, author of ''The Wal-Mart Effect," a book on the company's impact on the national economy. ''Plenty of Democrats denounce Wal-Mart, but there are also plenty of people who need it, love it and rely on it."

In 1986, when Wal-Mart's founder, Sam Walton, tapped Clinton to be the company's first female board member, Wal-Mart was a fraction of its current size, with $11.9 billion in net sales.

Today, Wal-Mart is the world's largest retailer and largest private employer, with over $312 billion in sales last year and 1.3 million employees in the US alone. But recently, the company has drawn intense scrutiny for its labor practices -- from its wages to the lack of affordable health coverage for employees, to its stiff resistance to unionization.

Throughout the 1980s, both Bill and Hillary Clinton nurtured relationships with Walton, a conservative Republican and by far Arkansas' most influential businessman.

Among other things, Hillary Clinton sought Walton's help in 1983 for Bill Clinton's so-called Blue Ribbon Commission on Education, a major effort to improve Arkansas' troubled public schools. The overhaul became a centerpiece of Clinton's governorship.

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