Wal-Mart Seeks Deal With Unions to Open First New York City Store

By ELIOT BROWN and MIGUEL BUSTILLO

Stepping up its efforts to enter the long-resistant New York City market, Wal-Mart is in advanced discussions with the city's politically powerful construction unions over a deal to construct new stores using unionized construction workers, who would in turn support the retailer's local entry, multiple people familiar with discussions said.

The talks with the Building and Construction Trades Council of Greater New York indicate a divide and conquer strategy for labor by the world's largest retailer, which has been ramping up a public and political push in an attempt to build its first stores in New York. While the giant retailer might use union laborers to build new stores here, it would still use a non-union retail workforce to staff them.

Wal-Mart's effort is still being fiercely resisted by unions that represent retail and grocery store workers, among others, who protest Wal-Mart's low wages. The plan will be the subject of a City Council hearing scheduled for January.

In recent weeks, Wal-Mart has been courting the building trades, pledging to use union labor for any new construction, among other concessions to be codified in a labor agreement, according to multiple union officials. The building trades are considered one of the more politically influential labor groups in the city, given their membership of about 100,000 workers.

Wal-Mart hasn't announced any specific locations for stores in New York, although the company has been discussing building a large store in Brooklyn with the Related Cos., and the retailer has told people involved with local strategy that it plans numerous stores in the city of an array of sizes.

Wal-Mart has told others that many of these stores are likely to be built "as of right" meaning they wouldn't need approval from the City Council. But Wal-Mart is clearly interested in minimizing friction with elected officials and community groups. By winning the support of the construction unions, the company would likely have a far less bumpy path to a ribbon cutting.