Wal-Mart scolds US business over healthcare

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Wal-Mart scolds business over healthcare

By Birchall and Francesco Guerrera in New York

Published: April 2 2008 22:04 Financial Times

The chief executive of Wal-Mart has criticised US business for not

taking a lead in the debate on the future of US healthcare ahead of

the presidential elections in November.

Lee said in a Financial Times interview that he was " not

particularly encouraged " by the public debate on the issues.

" I think business has been absent in this debate on healthcare. I'm

not sure why, " he said.

" I think government is going to be engaged after this election

regardless of who wins, and I think business should be more involved

in the discussion. I think it has long-term ramifications for our

global competitiveness. "

Mr said Wal-Mart, which has more than 1.3m US employees, had not

taken " a firm stand " on what a national healthcare system might look like.

The retailer has in the past argued that reforms should focus on

reducing costs rather than increasing employer funding of the system.

Some US corporate leaders say they have kept a low profile on

healthcare for fear of being dragged into a political debate that

could end up harming their companies' image and finances.

One chief executive of a large US company said recently: " Healthcare

is a minefield of problems. We don't know yet how the debate will

shape up and until then we don't want to make our positions known. "

Mr said some business leaders might hesitate to take on the

burden of entering a debate that they were not required to be in. But

" in our case we were already in the debate " , he said.

Union-led critics have repeatedly attacked Wal-Mart during the past

three years over the level of healthcare provision for its low-wage

workforce.

Its healthcare spending is below unionised competitors – principally

the three leading supermarket groups – while being broadly in line

with other retail competitors.

Mr expressed satisfaction that in spite of the union campaign,

Wal-Mart's record had not become an issue in the Democratic primaries.

Hillary Clinton served on Wal-Mart's board from 1986 to 1992 when her

husband was governor of Arkansas, the retailer's home state.

Both Democratic presidential hopefuls say they want employers to

either provide health insurance or to contribute towards costs, with

Barack Obama saying he would set a percentage of payroll costs for

health coverage.

http://www.ft.com/cms/s/0/8fb52504-00e4-11dd-a0c5-000077b07658.html