Walmart Realizes It’s Losing Billions Of Dollars By Denying Workers More Hours
Walmart Realizes It’s Losing Billions Of Dollars By Denying Workers More Hours
By Alan Pyke on March 30, 2014 at 3:57 pm
Walmart will begin adding worker hours this year as part of an effort to address complaints about empty shelves at the company’s understaffed stores. The retail giant’s top executives said that fixing the chain’s stocking problems could be worth $3 billion per year, a tacit acknowledgment that Walmart’s notorious efforts to wring productivity out of skeleton crews have hurt its bottom line.
Executives announced “plans to add labor hours as part of an effort to bolster ‘in-store execution’” at the company’s annual Year Beginning Meeting in March, Bloomberg reports. The news service did not offer specifics on how the plan will work, but Walmart has historically preferred scheduling workers for part-time hours to avoid paying them benefits required for full-time hours. Walmart workers around the country have gone on strike repeatedly in recent years, often listing the need for more staff hours among their reasons for protesting.
Regardless of how the company goes about staffing up, the decision to foreground in-store personnel issues at a major annual meeting confirms that Walmart is reconsidering the relationship between its workforce and its profits. Despite opening more than 600 new stores over the past five years, Walmart now employs 20,000 fewer people than it did in 2008. That aggressive decrease in staff eventually left stores unable to do the most basic thing for any retail company: putting merchandise on the shelves.
Stocking problems started to frustrate customers late last year, and Walmart cited concerns about empty shelves when it hired tens of thousands more workers for the holiday season. Months after making that temporary seasonal move, Walmart got downgraded by an investment research firm in a report that said the company’s “relentless focus on costs does seem to have taken some toll on in-store conditions and stock levels.”
More:
http://thinkprogress.org/economy/2014/03/30/3420798/walmart-staff-hours-3-billion/