Originally published November 27 2005
Wal-Mart plans to cut health benefits and increase part-time hires
by Mike Adams, the Health Ranger, NaturalNews Editor
CNN received a copy of a memo drafted by Wal-Mart VP Susan Chambers that announced plans to decrease the company's health care spending by hiring more part-time employees.
CNN obtained the 12-page memo, written by Susan Chambers, ahead of the board's November meeting, from the Web site of Wal-Mart Watch, a strong critic of Wal-Mart's labor practices, which says the memo was sent to its offices.
In the memo, Chambers wrote that a survey of employees had shown that "associates are satisfied overall with their benefits [but] they are opposed to most traditional cost-control levers," such as higher deductibles.
Chambers acknowledged that the company's benefit offering "is vulnerable to at least some of" the criticism leveled at it, "especially with regard to the affordability of coverage and associates' reliance on Medicaid."
Chambers' memo proposes a number of ways that Wal-Mart could hold down spending on health care and benefits while minimizing damage to its reputation.
The initiatives include increasing the number of part-time employees while making it easier for part-time employees to become eligible for benefits and offering a variety of benefits from which employees may choose.
The "bold steps" called for Wal-Mart to institute "consumer-driven health plans" with Health Savings Accounts that would go toward paying higher deductibles; restructuring the retirement program to put more money into health care and less into retirement; redesigning employment at Wal-Mart "to attract a healthier, more productive workforce"; making strategic investments to counter criticism; and improving communications about the company's benefits offering.
There was no date on Chambers' memo, but on Monday Wal-Mart CEO Lee Scott discussed the need to increase the federal minimum wage and a new "value option" health-care plan aimed at making insurance more available to employees.
Tracy Sefl, a spokeswoman for Wal-Mart Watch, told CNN/Money Tuesday that Scott's comments on raising the minimum wage were "laughable and out of left field."
Scott also discussed a new health-care package with lower premiums for Wal-Mart workers.
All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing LLC takes sole responsibility for all content. Truth Publishing sells no hard products and earns no money from the recommendation of products. NaturalNews.com is presented for educational and commentary purposes only and should not be construed as professional advice from any licensed practitioner. Truth Publishing assumes no responsibility for the use or misuse of this material. For the full terms of usage of this material, visit www.NaturalNews.com/terms.shtml