
© Reuters
Wal-Mart Stores Inc, the biggest U.S. private sector employer, said on Tuesday that its 1.3 million workers would have to pay more for healthcare and it would end benefits for some part-time staff in a move that could prompt other companies to follow suit.
The world's largest retailer said it would raise health insurance premiums for its entire U.S. workforce beginning in January. In addition, Wal-Mart will end coverage for employees who work fewer than 30 hours a week, a change that will impact 2 percent of U.S. workers, or about 30,000 people.
The move comes as U.S. companies brace for a January 2015 deadline under the Affordable Care Act. Starting then, companies with 50 or more employees will have to offer health insurance to those working at least 30 hours a week, a mandate that has drawn criticism from some companies worried about higher costs.
Wal-Mart, which announced the change in a blogpost on Tuesday, had cited health care expenses as a problem in August, when it cut its 2014 profit forecast. It said more people than expected had enrolled in its plans and its annual forecast for health care costs had risen by 50 percent.
"Like every company, Wal-Mart continues to face rising health care costs," Sally Welborn, senior vice president of global benefits, wrote in the blogpost on the company's website. "This year, the expenses were significant and led us to make some tough decisions as we begin our annual enrollment."
Wal-Mart said the bi-weekly premiums for its most popular and lowest-cost employee-only plans will rise by $3.50 to $21.90, which represents a 19 percent increase. Wal-Mart workers earn on average $12.92 an hour.
The decision to reduce coverage came a week before the company's chief executive, Doug McMillion, is due to face fund managers and analysts at an annual meeting for the investment community. Wal-Mart has been struggling to boost profits, with U.S. same-store sales flat or declining for the last six quarters.
Comment: Federal civil forfeiture law features an appalling lack of due process: It empowers the government to seize private property from Americans without ever charging, let alone convicting, them of a crime. Perversely, the government then pockets the proceeds while providing no prompt way to get a court to review the seizure. The police are taking advantage of civil forfeiture laws for their own means. Since they are getting away with killing people and their pets with impunity, they feel entitled to do as they please.
Feds seize family grocery store's entire bank account!
Goon cops have gone wild all over America
The police will kill your dog