Wal-Mart supports new health initiatives
Filed under: Company News, Healthcare
Wal-Mart (WMT) says it will support the administration's plan require all companies to supply health care to their workers. In an exclusive story in The Wall Street Journal, the firm's action was described as "a major break with most other large companies." The cost of offering health care is obviously a tremendous financial burden for corporations, especially in a down economy.
Wal-Mart may have a selfish reason to take the action. The Senate is considering a bill to require companies with low-wage workers to provide health care benefits. But, that view may be cynical. Wal-Mart workers are poorly paid in many instances, so providing benefits may be critical to allowing them access to medical services that they could never afford without aid.
Wal-Mart also has its share of low-wage customers who come to the company's store to shop for goods that are usually more expensive elsewhere. Being viewed as friendly to cash strapped consumers is not a bad image for Wal-Mart to project.
Wal-Mart's move might be seen as entirely self-serving. But there is a chance -- at least a chance -- that the company has a conscience and has decided to do something for its workers that they could never afford on their own.
Douglas A. McIntyre is an editor at 24/7 Wall St.
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Reader Comments (Page 1 of 5)
7-01-2009 @ 9:21AM
strongjohn said...
wal-mart has cheap chinese products i remember when its owner would only sell american products and he treated his help with respect i am sure the disrespect his sons showed there dad is an act of greed not love how much money does one need remember when you have a son pay back is a bitch
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7-15-2009 @ 11:28PM
matt said...
who is John Galt?
7-01-2009 @ 9:32AM
Charles H said...
Walmart is NOT the only store selling Chinese made products. Look around, you see them everywhere. Its harder and harder for me to find made in the USA BUT I still look for it.
As someone who always said I hate Walmart, I have to say in this economy I now shop there except for meat which I am not comfortable with.
Without Walmart things would be even more expensive for us Americans.
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7-01-2009 @ 9:35AM
Charles H said...
strongjohn....if you're old enough to remember the 50's to 70's and the comments Americans made about cheap JAPANESE products...... This is no different. I do buy American as much as possible, but do understand the so called "Global Economy".
Chinese products will improve with time.
What we have to worry about is their building a coal burning power plant that opens every week or so. Even is the other nations eliminate cola plants, China will pollute all out air.
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7-01-2009 @ 9:35AM
Mead Carlson said...
Wal(China)Mart must have made a deal with the unions to support this. You don't unionize us and we will offer limited beneftis to some of our employees. Lousy place to work low pay,part time usually no benefits,poor working conditions. Wal-Mart has done more to HURT small business and local communities that can ever be fixed. When local entreprenuers go under because of Wal Mart their communities suffer greatly. Has Wal Mart ever founded a hospital or college?
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7-01-2009 @ 10:05AM
Oswald said...
Hey Mead Carlson, Walmart doesn't allow unions, they fight organizing every step of the way! When the employees try and organize management attacks and harasses. Usually firing the leader of the attempt.
7-01-2009 @ 9:42AM
michael said...
Well if Walmart is in total agreement with the US Congress
Then why haven't they intiated this insurance proposal. Why do they need to be told? Is there a tax incentive for large corporations?Walmart do the right thing. Give your employees health benefits
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7-01-2009 @ 9:45AM
m2raptor said...
Well, this will allow Wal-mart to get a bigger market shares, because plenty of small businesses (that they compete with) can't afford to offer healthcare to thier employees.
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7-01-2009 @ 10:00AM
Ryan said...
SURE THEY DO!!!!! That means the government (you and I) will pay for their employees health insurance. Therefore, that expense will not hit Wal-Marts bottom line, and they will make a bigger profit.
Who actually benefits from this new health care initiative? Big Business. Democrats are lying to you and I.
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7-01-2009 @ 3:24PM
lou said...
I believe it isn't just Wal-Mart getting an advantage from this insurance program. I believe the employees will be better off in the long run and so will many of us. If you think the tax breaks for supplying this insurance is costing you, just think what it costs you when people cannot pay their hospital bill and that bill is wrote off by these hospitals. That hurts all of us when hospitals and doctors have to raise rates to those who are able to pay. Just like the banks raising rates on credit cards for those that can pay because of all the defaults from those who cannot. Someone is going to make up that difference. Unfortunately, it is you and I.
I know of 2 cases, on for $8,000 and one for $25,000. Both people walked away owing nothing, the hospital having to forgive the debt. Now that costs us plenty in the long run.
7-01-2009 @ 10:03AM
Ryan said...
Mead,
I totally agree with you. Isn't it funny how union representation is so significant with all of the major changes going on in this country? People mopping floors in the hospitals will be making just as much money as nurses and doctors!
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7-01-2009 @ 10:15AM
mike said...
I don't know where people get their information but wal-mart does provide health benefits for part-time workers.
I work at wal-mart parttime and make $10 per hour and have health insurance with the company.
does anyone remember that it was wal-mart which started the $4 per month cost for prescription drugs and improved it to $12 for a 3 month supply? In response other companies have lower their prices to compete with wal-mart. If wal-mart had not lowered the price of a prescription, do you think anyone else would have lowered their prices?
Mike
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7-06-2009 @ 6:19AM
Leon said...
The low cost generic prescription plan is a great publicity program. Let's see a complete list of the covered drugs. I take one generic medication for seizure control which costs over $400.00 a month. I don't know of ANY truly costly medication that they sell for $4.00/month. Most of them would cost under $30.00 a month anyway.
7-01-2009 @ 10:00PM
Jesse Justice said...
Oh Please! Walmart's benefits are as poor as their wages. A review of their benefit options proved to me that those walmart workers who thought they had a good deal really didn't have much to compare it to. Benefits enjoyed by most union members far exceed those of Walmart labor. If Walmart will set the standard for this new reform Obama has wasted his time and the time of our well insured senators, representatives and media.
7-02-2009 @ 3:05AM
SandyV said...
Well Mike I would like to know what Wal-Mart you work at part time and make better than 10.00 an hour and also have decent medical insurance that the company give you for free. LMAO boy what a sick joke. And I do know this for fact. Do you realize that you are paying about 42% more for your health coverage than other companies that offer ins. to their workers. Yeap and then gee you can also buy at a higher rate the short and long term Disablility ins. But you dang well better read that find print on your long term cause that is another Wal Mart sick joke. Wal Mart has not had any respect for thier workers since the founder died. All his children are interested in is thier almighty bottom dollar that is going into thier own fat bank accounts while thier employee get poorer. I could go on and on about the wonders and horror storys about working for such a nasty rude company that wal mart has become. I'm sure that these childrens father would not be the least bit proud of them and what they had done to his company. Bet he would beat them silly if he could come back and see this mess called Wal Mart
7-09-2009 @ 11:13AM
associate said...
Yes, wal-mart has health insurance for its workers, but my share of the cost is 71.00 a pay. High price for just one person insurance
7-01-2009 @ 10:17AM
Stephen said...
Of course small businesses are going to be going under because of this bull crap. It's rediculous Government is eather here to help the poor guy who either made bad decisions in life putting himself in the situation he is in, or is just lazy and wants a handout. OR they are helping the big guy AKA corporation make more money. What about the honest hard working middle class American? Always left to fend for himself. Pay more taxes, and get no Government help.
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7-01-2009 @ 10:28AM
Dan said...
Actually, Wal-Mart does off insurance to all it's employees already. In fact they have a program called Starbridge that allows new hires health care immediately. Employees do pay a good percentage of it, but its still cheaper than having to pick it up from a third party provider.
So I think it's a misconception people have they don't offer it and this really is not a change in Wal-Marts position. What it does is make the competition do the same. Door greeter at my local Wal-Mart in Western New York pays $8.40.
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7-02-2009 @ 1:03AM
Pam said...
Starbridge doesn't cover squat! It's just like those hokey dental insurance providers where they only pay 20% and you pay the 80%. And good luck if you actually need to have any surgery.
7-01-2009 @ 10:43AM
Doug said...
First, I will say I'm a salaried manager at WalMart. Also, as for the places I've worked at before, my insurances, benefits etc. are MUCH cheaper at WM then anywhere I've ever been, and with more options, especially for healthcare. A couple years ago, the company didn't need to use all the monies that was paid into their insurance, so what did they do? They gave it back to their associates. Don't get me wrong, my job is getting worse by the day, (Store specific) and I've begun to dread going to work. However, as for benefits, insurances, they're real good. As far as unionization, I agree with Obama and the lawmakers, if the employees want it, then great, I was a member of the teamsters about 5 years ago, and for that, I will say my experience with that union is: I pay the union, funding their harassment of my employer, who's paying me, so I can pay them. My union rep. had REAL nice shoes, clothes, and a big mouth. Who acted like he cared about me.... what a joke! I guess that's where you go when you have no talent, but have a big mouth, and didn't meet the right person to have a talk show.
Yes, there are definitely things wrong with my company, and unionization would cause REAL problems, and to be honest, many of the employees aren't smart enough to see through the BS from some official - looking union parasite. I'm starting to feel bad for them already.
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