Obama critical of Hillary being part of Wal-Mart in the 80's.. his wife linked to Wal-mart today.

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Obama critical of Hillary being part of Wal-Mart in the 80's.. his wife linked to Wal-mart today.

Obama called hypocrite for wife's Wal-Mart link
By Philip Sherwell in New York, Sunday Telegraph
Last Updated: 11:37pm BST 12/05/2007

http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/05/13/wobama13.xml

In pictures: US presidential front-runners
As a fluent public speaker, independent-minded wife, devoted mother and professional woman, Michelle Obama has been hailed as an invaluable asset to her husband Barack's mission to capture the Democratic 2008 presidential nomination.

Yet, while her style and performance are winning plaudits on the campaign trail, a little-reported business interest of Mrs Obama's has opened her husband up to one of the criticisms that politicians fear most - the taint of hypocrisy.

Business link: Michelle Obama
She is taking a break from her main job, as a well-remunerated Chicago hospital executive, to campaign for her husband. But she has just been re-elected to the board of an Illinois food-processing company, a position she took up two years ago to gain experience of the private sector.

And the biggest customer for the pickles and peppers produced by Treehouse Foods is the retail giant Wal-Mart, the world's largest corporation and the b�te noire of American liberals, including Sen Obama, for its employment practices, most notably its refusal to recognise trade unions.

As the Illinois senator prepared to join the presidential fray late last year, he threw his weight behind the union-backed campaign against Wal-Mart. He declared that there was a "moral responsibility to stand up and fight" the company and "force them to examine their own corporate values".

According to the couple's tax returns, Mrs Obama earned $51,200 (�25,700) for her work as a non-executive director on Treehouse's board last year, on top of the $271,618 salary she was paid as a vice-president of the University of Chicago Hospitals.

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She also received 7,500 Treehouse stock options, worth a further $72,375, as she did the previous year, when she banked a $45,000 salary from the company.

The apparent contradiction between Sen Obama's political calculation to join the Wal-Mart-bashing lobby, and his wife's profitable role with a company that makes money from Wal-Mart, is being closely scrutinised by "opposition" research teams working for rival White House candidates, The Sunday Telegraph has learnt.

They are collecting information about Mrs Obama's Treehouse ties, anticipating that - in a country where "going dirty" is a political way of life - the link may provide valuable ammunition in the election campaign.

Such attacks could be particularly damaging for Sen Obama, who has promised a change from politics as usual. Just last week, on her first foray to the crucial first primary state of New Hampshire, Mrs Obama praised her husband's "moral compass", reflecting a key message of his campaign.

Joe Novak, a Chicago political consultant who runs an anti-Obama website, said: "The Obamas would have us believe that, when it comes to money and ethics and compassion, he is a different kind of politician.

"What's different here is that they actually seem to believe it. That's the only way they can justify the contradictions between what they preach and what they practice. Defending Treehouse while attacking Wal-Mart is a blatant example of personal hypocrisy."

Sen Obama's campaign team and Mrs Obama's spokesman did not respond to requests by The Sunday Telegraph for comment. But the senator previously told Crain's Chicago Business magazine that, while his views on corporate reform and social justice remained the same regardless of what happens at Treehouse, "Michelle and I have to live in the world and pay taxes and pay for our kids and save for retirement".

Hillary Clinton, Sen Obama's main rival for the Democratic nomination, can testify to the political dangers in liberal America of being associated with Wal-Mart, even though the company's cost-cutting policy makes its goods more affordable for the low-paid. The New York senator and wife of the former President Bill Clinton still encounters flak for serving on the company's board from 1985 to 1992, before becoming First Lady.

According to Treehouse's financial filings, Wal-Mart accounted for 16.1 per cent of its sales last year, up from 11.7 per cent in 2005 (a 37 per cent increase), comfortably making it the company's biggest customer. Treehouse's annual operating profits rose from $28 million two years ago to $84 million (up 200 per cent) in 2006.

Mrs Obama, 43, was re-elected to the board last month for a further three years, a period that would overlap with her husband's time in the White House if he becomes America's first black president.

Mrs Obama is Treehouse's senior non-executive director and sits on the company's audit and nominating and corporate governance committees. Her Treehouse connection is not the only awkward ethical question that has confronted Sen Obama as his past is dug over.

Earlier this year, in response to a newspaper investigation, he said he was unaware that his broker had bought $50,000 worth of stock in two speculative companies whose leading investors included some of his biggest political donors.

He has also apologised for his "boneheaded error" in striking a property deal with Tony Rezko, a Chicago Democrat operative facing a federal indictment.