No. of Recommendations: 2
Selena,

So you say that there are 1.3 million employees and Walmart's profits are $8B from the last year. Proper medical, dental, LTD and life insurance costs my employees (we're in Canada too so these numbers might be a little low for the States) anywhere from $50-100 per month depending on if they are single or insuring their family. Each of us (the employer and the employee) pays 50% of the cost.

So if Walmart wanted to do this for every employee, using a fairly good plan but also using Canadian insurance quotes (I'll stretch here and not account for currency translation and assume that it covers the lower Canadian insurance costs) the plan would cost Walmart anywhere from $780M to $1,560M per year.

It would also cost the employees the same amount collectively.

Some people won't opt in because of the price and some will already be covered (spouse) so let's assume it comes in at an even $1 billion.

As a shareholder would you like to see 12.5% knocked off your profit so that you could "feel good"? Note that this does not address the lower wages issue, just insurance covereage.

As a customer, would you shop there if they raised prices about 12% to generate the extra billion to pay for this?

As an employee would it make such a huge difference? How about if they raised your salary from $20,000 to $21,000 per year? Nope, didn't think so.

If Walmart employees want more they're going to have to get up and earn it. Companies don't give away money and either do customers. However, if Walmart was more like McDonald's it might be a decent career path. I once met one of the senior VPs of McDonalds at a party. He and his wife met slinging burgers when they were in their teens. Promotion from within works (though some would doubt it with McD's current situation) and provides incentive for those employees that have a spark in them.

The rest will have to make do with $20,000 a year and minimal insurance.

Simon
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