Thursday, October 09, 2014

Walmart Cuts Healthcare Benefits

Walmart, the largest retailer in the world and the biggest private employer in the United States, announced it is eliminating health insurance for 30,000 of its workers and raising the costs of premiums across the board for others. Walmart will stop providing insurance to workers scheduled fewer than 30 hours a week. In addition to the elimination of health insurance for part-time workers Walmart will substantially increase costs for workers who do have company health insurance. For example Walmart's lowest cost associate-only plan will increase by 20 percent per pay period.

 In 2011, Walmart cut coverage for new employees scheduled fewer than 24 hours a week, and in 2012 it instated the same cuts to new workers scheduled under 30 hours a week.  A Reuters report released last year finds that Walmart has been systematically eroding full-time jobs in order to dodge requirements for providing health insurance required by the Affordable Care Act.

For the fiscal year of 2014, Walmart  returned $12.8 billion to shareholders through dividends and share repurchases. In 2014, Walmart was ranked number one on the Fortune 500 list for its large revenues. The Walton family is one of the most wealthy on earth and has consistently been in the Forbes 400 top ten wealthiest list since 2001. Despite these facts, Walmart's Senior Vice President of Global Benefits Sally Welborn claims the company cannot afford the cost of insurance. "This year, the expenses were significant and led us to make some tough decisions as we begin our annual enrollment."

Walmart's cuts follow similar slashes to health care coverage from other retail giants, including Home Depot, Target, and Trader Joe's.  As the employer of 1.3 million workers in the United States alone, critics charge Walmart is driving down working standards across the retail sector.

 Due to forced part-time work, combined with low wages, high numbers of Walmart workers rely on public assistance, including food stamps, to get by. As a result, the demands for a $15 minimum wage, and full-time employment, have become key to the numerous actions, strikes, walk-outs, and workplace organizing drives sweeping Walmart stores across the United States. Walmart workers face retaliation when they organize to improve their conditions, including the unlawful punishment and firing of employees who take part in protests, strikes, and other actions.

From here

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