- Sep 26, 2000
- 28,559
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http://www.nytimes.com/2005/10/26/busin...481941719e52b&ei=5094&partner=homepage
Seems a memo got out about Walmarts plans to lower benefits and gain productivity.
Here's some highlights:
Among the recommendations are hiring more part-time workers and discouraging unhealthy people from working at Wal-Mart.
The memo voices concern that workers with seven years' seniority earn more than workers with one year's seniority, but are no more productive.
Wal-Mart...acknowledged that 46 percent of the children of Wal-Mart's 1.33 million United States employees were uninsured or on Medicaid.
Walmart acknowleges that: Wal-Mart's critics can easily exploit some aspects of our benefits offering to make their case; in other words, our critics are correct in some of their observations. Specifically, our coverage is expensive for low-income families, and Wal-Mart has a significant percentage of associates and their children on public assistance."
Ms. Chambers's memo voiced concern that workers were staying with the company longer, pushing up wage costs, although she stopped short of calling for efforts to push out more senior workers
"the cost of an associate with seven years of tenure is almost 55 percent more than the cost of an associate with one year of tenure, yet there is no difference in his or her productivity. Moreover, because we pay an associate more in salary and benefits as his or her tenure increases, we are pricing that associate out of the labor market, increasing the likelihood that he or she will stay with Wal-Mart."
Seems a memo got out about Walmarts plans to lower benefits and gain productivity.
Here's some highlights:
Among the recommendations are hiring more part-time workers and discouraging unhealthy people from working at Wal-Mart.
The memo voices concern that workers with seven years' seniority earn more than workers with one year's seniority, but are no more productive.
Wal-Mart...acknowledged that 46 percent of the children of Wal-Mart's 1.33 million United States employees were uninsured or on Medicaid.
Walmart acknowleges that: Wal-Mart's critics can easily exploit some aspects of our benefits offering to make their case; in other words, our critics are correct in some of their observations. Specifically, our coverage is expensive for low-income families, and Wal-Mart has a significant percentage of associates and their children on public assistance."
Ms. Chambers's memo voiced concern that workers were staying with the company longer, pushing up wage costs, although she stopped short of calling for efforts to push out more senior workers
"the cost of an associate with seven years of tenure is almost 55 percent more than the cost of an associate with one year of tenure, yet there is no difference in his or her productivity. Moreover, because we pay an associate more in salary and benefits as his or her tenure increases, we are pricing that associate out of the labor market, increasing the likelihood that he or she will stay with Wal-Mart."
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