October 26, 2005

Private: Wal-Mart Memo Suggests Ways to Cut Benefits


The New York Times reports that an internal memo has been circulated that 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.
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. Susan Chambers, Wal-Mart's executive vice president for benefits, acknowledged that 46 percent of the children of Wal-Mart's 1.33 million United States employees were uninsured or on Medicaid.
In an interview, Ms. Chambers said she was focusing not on cutting costs, but on serving employees better by giving them more choices on their benefits.
"We are investing in our benefits that will take even better care of our associates," she said. "Our benefit plan is known today as being generous."
The memo can be accessed in its entirety here.
Thanks to Labor Blog for the tip.