Editors' Note: Revoking the power of corporations to influence electoral races and ballot inititiatives is one of ReclaimDemocracy.org major long-term objectives. Two recent examples of corporate corruption of the initiative process are going on now (10/2004) in California (here) and Montana (here).

SACRAMENTO, Calif. -- After years of waging its political wars almost exclusively on the local level, Wal-Mart Stores Inc. is spending aggressively this election in support of favored statewide candidates and ballot measures - including donations to Gov. Arnold Schwarzenegger and the state Republican Party.

The world's largest corporation, which once had a tradition of trying to stay out of politics, has given more than $2.4 million on California races so far this year - well beyond any previous sum the company has spent here in one year.

And Tuesday, the Bentonville, Ark.-based company announced it would donate an additional $500,000 to the opponents of Proposition 72, a measure that will require employers to provide basic health insurance to workers.

Wal-Mart representatives said the escalation of political activity in California is a direct result of mounting attacks the company faces from labor unions and other critics.

"Many of our opponents are trying to use the political system to stop our growth," said Bob McAdam, Wal-Mart's vice president of corporate affairs. "And we are not going to sit back and take it without responding. We will respond."

Indeed, after spending more than $1 million this year on unsuccessful efforts to gain voter approval for superstore projects in the Los Angeles and San Diego areas, the company has given the California Republican Party $160,000 to use in legislative races and close to another $70,000 to support candidates and measures in Lodi and Antioch where Wal-Mart has proposed centers. They have donated another $10,000 to governor's California Recovery Team, which Schwarzenegger can use to fight or support any ballot measure he chooses, and another $30,000 to a general purpose campaign set up by major employers that is supporting GOP candidates statewide.

The contributions this year far exceeds the $1 million spent in 2003 and more than double the previous high of $1.2 million four years ago.

The big Wal-Mart check to the opponents of Proposition 72 came just one day after supporters of the measure began running TV ads citing a study from a University of California research group with ties to the labor movement that estimates California taxpayers spend $32 million a year providing health care to Wal-Mart workers.

Among those backing Proposition 72 and the critical Wal-Mart health care ads, is the California Medical Association, whose chief executive Dr. Jack Lewin has said that Wal-Mart was singled out because it is the state's most prominent low-wage, low-benefit employer.

Union officials say California has become a battleground for the company.

The latest fight is in the Bay Area town of Antioch where the retailer is backing three council candidates that are sympathetic to the company's plan for a superstore in that community.

Critics contend the company's deep pockets pose a severe threat to the political balance of power.

"They are so large and have so much money that they can overwhelm the traditional democratic process," said Greg Denier, spokesman for the United Food and Commercial Workers International Union. "This company isn't just the largest employer in the U.S., they are the largest employer in the majority of the states. I don't think people have ever confronted something like Wal-Mart before."

© 2004 Associated Press

Related features:

Wal-Mart becomes largest U.S. political investor

Wal-Mart seeks to reverse loss via ballot initiative

Index of all our articles on Wal-Mart, Inc.

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