Wal-Mart seeks to discourage hiring of less-healthy workers

[Ian David]

Wal-Mart is Shafting Workers Again
An internal memo sent to Wal-Mart's board of directors shows how the company plans to reduce health care costs and other benefits while seeking to minimize damage to the retailer's reputation. In the memo, Wal-Mart's executive vice president for benefits, Susan Chambers recommends reducing 401(k) contributions, hiring more healthier, part-time workers and discouraging unhealthy job applicants.

More:
http://www.airamericaradio.com/node/1230

Also:


October 26, 2005

Wal-Mart Memo Suggests Ways to Cut Employee Benefit Costs
By STEVEN GREENHOUSE
and MICHAEL BARBARO

An internal memo sent to Wal-Mart's board of directors proposes numerous ways to hold down spending on health care and other benefits while seeking to minimize damage to the retailer's reputation. Among the recommendations are hiring more part-time workers and discouraging unhealthy people from working at Wal-Mart.

In the memorandum, M. Susan Chambers, Wal-Mart's executive vice president for benefits, also recommends reducing 401(k) contributions and wooing younger, and presumably healthier, workers by offering education benefits. The memo voices concern that workers with seven years' seniority earn more than workers with one year's seniority, but are no more productive.

To discourage unhealthy job applicants, Ms. Chambers suggests that Wal-Mart arrange for "all jobs to include some physical activity (e.g., all cashiers do some cart-gathering)."

The memo acknowledged that Wal-Mart, the world's largest retailer, had to walk a fine line in restraining benefit costs because critics had attacked it for being stingy on wages and health coverage. Ms. Chambers acknowledged that 46 percent of the children of Wal-Mart's 1.33 million United States employees were uninsured or on Medicaid.

Wal-Mart executives said the memo was part of an effort to rein in benefit costs, which to Wall Street's dismay have soared by 15 percent a year on average since 2002. Like much of corporate America, Wal-Mart has been squeezed by soaring health costs. The proposed plan, if approved, would save the company more than $1 billion a year by 2011.

More:
http://www.nytimes.com/2005/10/26/business/26walmart.ready.html?ei=5094&en=311481941719e52b&hp=&ex=1130385600&partner=homepage&pagewanted=print

[MountainLaurel]

1. Once again

It's a travesty that this country ties health care to employment.

Ms. Chambers acknowledged that 46 percent of the children of Wal-Mart's 1.33 million United States employees were uninsured or on Medicaid.

[ayeshahaqqiqa]

2. More part time workers

so they don't have to pay any benefits at all. The kids of Wal-Mart employees are often found on Medicaid rolls because their folks can't afford to give them health care. In Arkansas, home of Wal-Mart headquarters, there are some 10,000 such kids on the rolls. Nice to know that even if I boycott Wal-Mart, I'm still subsidizing their bottom line by paying for the health care of their workers and their families.

[MountainLaurel]

5. Unfortunately

This approach is expanding beyond Wal-Mart and its retail brethren. Places like universities, local governments, high-tech companies, accounting firms are doing the same thing to professional workers: splitting a full-time position into two part-time jobs, creating 9-month temp positions for what should be a regular job, hiring people for 34 hours a week.

[Dogmudgeon]

3. They've been doing this for over five years

I used to go out with a Wal-Mart babe who had a son with a hole in his heart. It required fairly expensive treatment. She told me she was glad she got in before the "hiring freeze" on unhealthy people.

My local Wal-Mart appears to be run by some fairly progressive people, as Wal-Mart managers go. They did not like the policy and often found ways to get around it, especially with unmarried young women with children like my then-girlfriend.

Although Wal-Mart gets plenty of well-deserved bashing, I think the real culprits here are the insurance companies and our government's lax attitude on insuring the poor.

--p!

[Ian David]

4. Agreed. Wal-Mart is only PART of the problem

We need more people like your girlfriend's manager at Schindler's Wal-Mart.

Anyway, keep this in mind:

1) Only 2% of African-Americans approve of Bush
2) Wal-Mart is a huge Bush supporter
3) Wal-Mart sucks-- big time.

Let's focus on the African-American Community in encouraging a Wal-Mart boycott!

George W. Bush- The "W" is for "Wal-Mart."