Gay rights group raises red flag on Wal-Mart policies

— -- Citing Wal-Mart's refusal to offer domestic partner benefits to its gay and lesbian workers, the HRC said Tuesday that the USA's biggest private employer has "more work to do in furthering equality." It advised gays and their supporters to shop elsewhere.

Wal-Mart has bucked a corporate trend of expanding benefits for gay employees, says Daryl Herrschaft, director of HRC's workplace project. He says two Fortune 500 companies offered domestic partner benefits, comparable to spouse benefits, in 1990. Today, 269 do.

"We're proud of our diversity initiatives and we think we are taking the right steps," Wal-Mart spokesman David Tovar says.

HRC's low rating comes as Wal-Mart has been enjoying positive publicity about its move this fall to offer better health coverage to more of its 1.4 million U.S. workers.

The company had been pummeled by unions and some state legislators who said it was offering unaffordable health insurance plans.

Herrschaft says Wal-Mart had been moving toward more gay-friendly practices. In 2003, the company added sexual orientation to its non-discrimination policy.

In December 2005, HRC executives were invited to the first of two meetings at the company's headquarters in Bentonville, Ark. On the agenda: the intricacies of implementing domestic partner benefits.

Conservative groups angered by Wal-Mart contributions to gay organizations threatened a boycott, and in June, the company announced a policy to avoid "highly controversial issues." Talks on gay benefits ended, Herrschaft says.