Wal-Mart Memo Suggests Ways to Cut Employee Benefit Costs

[Guest guest]

By STEVEN GREENHOUSE

and MICHAEL BARBARO

Published: October 26, 2005

An internal memo sent to Wal-Mart's board of directors 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.

In the memorandum, M. Chambers, Wal-Mart's executive vice president for

benefits, also recommends reducing 401(k) contributions and wooing younger, and

presumably healthier, workers by offering education benefits. The memo voices

concern that workers with seven years' seniority earn more than workers with one

year's seniority, but are no more productive.

To discourage unhealthy job applicants, Ms. Chambers suggests that Wal-Mart

arrange for " all jobs to include some physical activity (e.g., all cashiers do

some cart-gathering). "

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. Chambers acknowledged that 46 percent

of the children of Wal-Mart's 1.33 million United States employees were

uninsured or on Medicaid.

Wal-Mart executives said the memo was part of an effort to rein in benefit

costs, which to Wall Street's dismay have soared by 15 percent a year on average

since 2002. Like much of corporate America, Wal-Mart has been squeezed by

soaring health costs. The proposed plan, if approved, would save the company

more than $1 billion a year by 2011.

For the rest of the story...

http://www.nytimes.com/2005/10/26/business/26walmart.ready.html?th & emc=th

__________________

When you shop at Walmart keep this in mind. And think about taking your next

cash register receipt and sending it to Walmart with a note saying that you are

a Walmart shopper but if they put in place these inhumane rules you will take

your business elsewhere.

Priscilla A. Savary

Executive Director

Colorectal Cancer Network

PO Box 182, Kensington MD 20895

psavary@...

www.colorectal-cancer.net

_________

Screening for All. Colon Cancer for None.

ProjectMARCH -- rarely in life do you get a chance to make major change or save

thousands of lives. March 6, 2006 you can.

http://www.colorectal-cancer.net/projectmarch.htm

[Guest guest]

Pretty sure my daughter already got this, but I am going to send it to her

anyway just in case. Thanks for sharing this. Jolene

Wal-Mart Memo Suggests Ways to Cut Employee

Benefit Costs

By STEVEN GREENHOUSE

and MICHAEL BARBARO

Published: October 26, 2005

An internal memo sent to Wal-Mart's board of directors 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.

In the memorandum, M. Chambers, Wal-Mart's executive vice president

for benefits, also recommends reducing 401(k) contributions and wooing

younger, and presumably healthier, workers by offering education benefits.

The memo voices concern that workers with seven years' seniority earn more

than workers with one year's seniority, but are no more productive.

To discourage unhealthy job applicants, Ms. Chambers suggests that Wal-Mart

arrange for " all jobs to include some physical activity (e.g., all cashiers

do some cart-gathering). "

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. Chambers acknowledged

that 46 percent of the children of Wal-Mart's 1.33 million United States

employees were uninsured or on Medicaid.

Wal-Mart executives said the memo was part of an effort to rein in benefit

costs, which to Wall Street's dismay have soared by 15 percent a year on

average since 2002. Like much of corporate America, Wal-Mart has been

squeezed by soaring health costs. The proposed plan, if approved, would save

the company more than $1 billion a year by 2011.

For the rest of the story...

http://www.nytimes.com/2005/10/26/business/26walmart.ready.html?th

<http://www.nytimes.com/2005/10/26/business/26walmart.ready.html?th & emc=th>

& emc=th

__________________

When you shop at Walmart keep this in mind. And think about taking your

next cash register receipt and sending it to Walmart with a note saying that

you are a Walmart shopper but if they put in place these inhumane rules you

will take your business elsewhere.

Priscilla A. Savary

Executive Director

Colorectal Cancer Network

PO Box 182, Kensington MD 20895

psavary@...

www.colorectal-cancer.net

_________

Screening for All. Colon Cancer for None.

ProjectMARCH -- rarely in life do you get a chance to make major change or

save thousands of lives. March 6, 2006 you can.

http://www.colorectal-cancer.net/projectmarch.htm

[Guest guest]

It is so sad that Walmart does their employees that way. And it is

usually the younger kids and single parents that suffer. It is that

bad working in the fast food retail also. Ingrid

>

> By STEVEN GREENHOUSE

> and MICHAEL BARBARO

> Published: October 26, 2005

> An internal memo sent to Wal-Mart's board of directors 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.

>

> In the memorandum, M. Chambers, Wal-Mart's executive vice

president for benefits, also recommends reducing 401(k) contributions

and wooing younger, and presumably healthier, workers by offering

education benefits. The memo voices concern that workers with seven

years' seniority earn more than workers with one year's seniority,

but are no more productive.

> To discourage unhealthy job applicants, Ms. Chambers suggests that

Wal-Mart arrange for " all jobs to include some physical activity

(e.g., all cashiers do some cart-gathering). "

>

> 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.

Chambers acknowledged that 46 percent of the children of Wal-Mart's

1.33 million United States employees were uninsured or on Medicaid.

>

> Wal-Mart executives said the memo was part of an effort to rein in

benefit costs, which to Wall Street's dismay have soared by 15

percent a year on average since 2002. Like much of corporate America,

Wal-Mart has been squeezed by soaring health costs. The proposed

plan, if approved, would save the company more than $1 billion a year

by 2011.

>

> For the rest of the story...

>

> http://www.nytimes.com/2005/10/26/business/26walmart.ready.html?

th & emc=th

>

>

>

> __________________

>

> When you shop at Walmart keep this in mind. And think about taking

your next cash register receipt and sending it to Walmart with a note

saying that you are a Walmart shopper but if they put in place these

inhumane rules you will take your business elsewhere.

>

> Priscilla A. Savary

> Executive Director

> Colorectal Cancer Network

> PO Box 182, Kensington MD 20895

>

> psavary@c...

> www.colorectal-cancer.net

> _________

> Screening for All. Colon Cancer for None.

> ProjectMARCH -- rarely in life do you get a chance to make major

change or save thousands of lives. March 6, 2006 you can.

> http://www.colorectal-cancer.net/projectmarch.htm

>

>

>