Sad news for Walmart workers, the retailer will be cutting down the health benefits of its workers in the face of increased health care costs. The largest retailer in the United States will be cutting down its health benefits for an approximate figure of 30,000 workers.
Walmart announced last Tuesday that it would be cutting the health benefits for 30,000 workers, about 2% odf the retailer's United States work force, to curb increased costs. This year, more of Walmart's employees signed up for the retailer's health benefits than the company had forecasted. This led to a massive increase in health care costs.
The cut applies to part timers who work fewer than just 30 hours in a week. The move by Walmart was seen as a follow up to a trend initiated by other companies such as Target and Trader Joe's. The companies noted that these companies could now get affordable healthcare through Obamacare.
"This year, the expenses were significant and led us to make some tough decisions as we begin our annual enrollment," wrote down Wal-Mart executive Sally Welborn in a statement.
Target, in January, eliminated healthcare benefits for all of its part time employees. It encouraged them to enroll in Obamacare and even gave out a $500 cash payment for each. Home Depot also announced that they would stop offering benefits to part timers.
Costco, however, did not join the bandwagon of retailers eliminating health benefits for part time employees. In fact, Costco executive Richard Galanti went on to affirm the company's commitment to providing health care coverage to all its employees. This was during Wednesday's earnings call. "We haven't and aren't going to make major changes like cutting a bunch of people out of" health coverage. That's an expensive cost to us, and we're proud of the ability to be able to do that," he added.
Costco is widely praised for its ability to treat its workers. The recent decision to maintain the health benefits will solidify that reputation.
