Sarbanes-Oxely
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A Substantial Number of Wal-Mart Associates earn far below the poverty line
In 2001, the last year for which Wal-Mart has released figures for most occupations, sales associates, the most common job in Wal-Mart, earned on average $8.23 an hour for annual wages of $13,861.The 2001 poverty line for a family of three was $14,630. [“Is Wal-Mart Too Powerful?”, Business Week, 10/6/03 and US Dept of Health and Human Services 2001 Poverty Guidelines, 2001]
A 2003 wage analysis reported that cashiers, the second most common job, earn approximately $7.92 per hour and work 29 hours a week. This brings in annual wages of only $11,948. [“Statistical Analysis of Gender Patterns in Wal-Marts Workforce”, Dr. Richard Drogin 2003]”
Wal-Mart Associates dont earn enough to support a family
The national median family budget in the United States for a two-person family (one parent and one child) in 1999 was $23,705, well above the average associates annual wages of $13,861. [“Poverty and Family Budgets” online at www.epinet.org]
Wal-Mart can afford wage increases
Wal-Mart can cover the cost of a dollar an hour wage increase by raising prices a half penny per dollar. For instance, a $2.00 pair of socks would then cost $2.01. This minimal increase would annually add up to $1,800 for each employee. [Analysis of Wal-Mart Annual Report 2005]
Wal-Mart forces employees to work off-the-clock
As of the printing of their 2005 Annual Report, Wal-Mart faced 44 wage and hour lawsuits. Major law-suits have either been won or are working their way through the legal process in states such as California, Indiana, Minnesota, New Jersey, Oregon, and Washington. [Wal-Mart Annual Report 2005]
Wal-Mart was recently ordered by courts to pay up to 120 workers in Gallup, New Mexico and 400 workers in 27 stores in Oregon for violating wage and hour laws.
In 2002, statisticians estimated Wal-Mart shortchanged its Texas workers $150 million over four years by regularly not paying them for working through their 15-minute breaks. [Sources include Associated Press, “Federal Jury Finds Wal-Mart Guilty in Overtime Pay Case,” Chicago Tribune, Business 3, 12/20/03 and Steven Greenhouse, “Suits Say Wal-Mart Forces Workers to Toil Off the Clock,” New York Times, A1, 6/25/02)]
Wal-Mart violates the Fair Labor Standards Act
One week of time records from 25,000 employees in July 2000 found 1,371 instances of minors working too late, during school hours, or for too many hours in a day. There were 60,767 missed breaks and 15,705 lost meal times. [Steven Greenhouse, “Suits Say Wal-Mart Forces Workers to Toil Off the Clock,” New York Times, A1, 6/25/02]
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Wal-Mart and Health Care
Download the Wal-Mart and Health Care Flyer – PDF
Wal-Marts Health Care Plan Fails to Cover Over 600,000 Employees
Wal-Mart reports that its health insurance only covers 48% of their employees. Wal-Mart has approximately 1.3 million US employees.
Wal-Marts Health Insurance Falls Far Short of the Industry Average
On average, large firms (200 or more workers) cover approximately 68% of their employees. If Wal-Mart was to reach the average coverage rate, Wal-Mart should be covering an additional 260,000 employees (Kaiser Family Foundation & Health Research and Educational Trust, 2004).
Wal-Marts Health Care Eligibility is Restrictive
Part-timers–anybody below 34 hours a week – must wait 2 years before they can enroll. Moreover, part-time employees are ineligible for family health care coverage. Full-time hourly employees must wait 180 days (approximately 6 months) before being able to enroll in Wal-Marts health insurance plan. Managers have no waiting period. (Wal-Mart 2005 Associate Guide)
Nationally, the average wait time for new employees to become eligible is 1.6 months. For the retail industry it is 2.8 months. (Kaiser Family Foundation & Health Research and Educational Trust, 2004)
Wal-Marts Most Affordable Health Plan is Costly
According to Wal-Mart, “We insure more than 500,000 associates, including many family members, who pay as little as $17.50 for individual coverage and $70.50 for family coverage bi-weekly.”
Wal-Marts most affordable plan includes a $1,000 deductible for single coverage and a $3,000 deductible for family coverage ($1,000 deductible per person covered up to $3,000). An average full-time worker earns $17,114 a year.
If a full-time Wal-Mart hourly employee elects for single coverage, the employee would have to spend on average 9% of their earnings before the health insurance provided any reimbursement.
If a full-time employee elected for family coverage, an average employee would have to spend 27% of their average earnings before the health insurance covered any costs. (Wal-Mart 2004 Associate Guide and UFCW Analysis).
Wal-Mart Admits Public Health Care Assistance is a “Better Value”
Despite $10 billion in profits, President and CEO Lee Scott said, “In some of our states, the public program may actually be a better value – with relatively high income limits to qualify, and low premiums.” (Transcript Lee Scott Speech 4/5/05)
Wal-Marts Health Care is Only Getting Costlier
Since 2000, the cost of premiums has risen 169 percent for single coverage and 117 percent for family coverage. (UFCW analysis of annual Wal-Mart Associate Guides).
In comparison, premiums for family coverage in the U.S. have increased only by 59%, since 2000. (Employer Health Benefits: 2004 Annual Survey, Kaiser Family Foundation & Health Research and Educational Trust, 2004)
Wal-Mart Employees Pay More for Health Care Costs
In 2003, Wal-Mart employees, in total, covered approximately 40% of the plan costs (5500 Filings). Nationally, on average employees at large firms (over 200 employees) cover only 16% of single coverage costs and 24% of family coverage costs (KFF, 2004).
In a state analysis, the Massachusetts Department of Health and Human Services found that in 2003, Wal-Mart covered only 52% of total health care premium costs compared to K-Mart which