The corporate giant of Wal-Mart has long been under fire for being seemingly devoid of morals when it comes to taking care of its employees. The multi-billion dollar company isn’t ending this reputation with its latest move to cut benefits to some of its employees. The giant employs over 1.3 million people in the United States, with 30,000 of those employees working fewer than 30 hours per week. The company has recently announced that they plan to end healthcare coverage for those 30,000 part-time employees.
In a blog post, the company states they’re terminating the healthcare benefits because of rising healthcare costs. To balance their costs, the amount that full time employees pay for their benefits is also going to skyrocket from $18.40 to $21.90 per pay period. Economics experts like Christian Broda say this move probably stemmed from the decreased profit forecast from August because the company cited the cost of employee healthcare as a detriment to their profits. The company is estimating a $500 million impact on their bottom line, up $170 million from the forecast estimated in February of this year.
In 2011, corporate cut the health benefits of part-time employees who worked less than 24 hours a week, so some say that the cut isn’t surprising. Wal-Mart claims they’re just following the lead of other retail giants like Target and Home Depot. The company’s vice president says they will work closely with a third-party alternative to help their part-time employees find viable health insurance for themselves and their families.