Staffing/Recruiting/ Retention
Wal-Mart Fails To Retain Workers. Employee turnover at Wal-Mart is extremely high, even for
the highturnover
retail industry. According to company reports, it has stood at around 50% for several years.
Some
critics have put Wal-Mart’s annual employee turnover at closer to 70%. By comparison, annual
turnover for the
retail industry as a whole in 2004 was just over 29%. http://action.walmartwatch.com/page//Fact%20Sheets/2009%20health%20care%20fact%20sheet_040709.pdf
2.1 million employees -- http://www.msnbc.msn.com/id/31100982/
In 2009 they had looked to hire : Wal-Mart to create 22,000 jobs in 2009
Positions include cashiers, clerks, managers and pharmacists (same citation as above)
Retirement Programs
--Wal-Mart has contributed two percent of an associate’s pay to a profit-sharing plan and two percent of
pay into an associate’s 401(k) retirement plan. Associates are not required to contribute any of their
own money to the plans in order to get the company contribution
--667 million to 815,629 hourly associates in profit-sharing and 401(k) contributions.
• $51.4 million to 706,389 hourly associates toward the company’s associate stock purchase plan.
• $397 million in discounted merchandise through a program that gives hourly associates and their
family members 10 percent off merchandise at Wal-Mart. (from walmart site)
received $517 in profit sharing and 401k contributions which amounts to a sad $1.42 per day for
retirement. (by doing the math)
Wal-Mart’s annual report said the total stock compensation was $276 million in 2007, but Wal-Mart’s
press release from May 1, 2008 said that only $50.1 million went to hourly employees. Therefore,
$225.9 million, or 81.8%, of the stock purchase plan benefit went to non-hourly management and
executives (from wake up walmart)
Additionally, Wal-Mart awarded more than $529.8 million in bonuses earlier this year to 813,759 WalMart store and Sam’s Club hourly associates in the U.S.---which is a measly $1.78 per day ($651 per
year).
"Wal-Mart provides associates much more than just a competitive paycheck,” said Susan Chambers,
executive vice president, global people division
http://walmartstores.com/FactsNews/NewsRoom/6428.aspx?rss=Associate_Benefits
Compensation
Mike Duke became CEO in February of 2009
Compensation at the beginning of 2009
H. Lee Scott JR
Base pay = 1,456,000
Total Cash compensation = 7,280,000 (includes bonus and non equity incentive comp)
Total Equity = 21,785,433 (includes 4,750,000 (restricted stock) $ 14,250,000 (performance shares)
Total Compensation = 29, 717, 918 (including other compensation)
Michael T. Duke
Vice Chairman
Base Pay $1,050,000
Bonus + Non-Equity Incentive Comp $3,064,951
Stock Award Value
Register/Log In
Other Compensation $380,343
Option Award Value
Total Cash Compensation $4,114,951
Register/Log In
Total Equity $7,533,081
TotalCompensation $12,028,375…….1,750,000 (restricted)
(performance)
Hourly Rate Chart
Median Hourly Rate by Job
Employer: Wal-Mart Stores, Inc
$ 5,250,000
Total
cashier = $8.44
department manager= $11.85
median hourly rate by job
http://www.payscale.com/research/US/Employer=Wal-Mart_Stores,_Inc/Hourly_Rate
Benefits/ ERISA (healthcare included)
--Wal-Mart reports that its health insurance covers only 50.2% of their employees. Wal-Mart has nearly
1.4 million US employees. [UFCW analysis of Wal-Mart health plan, March 2008]---compared to 64 %
average in other large firms. http://action.walmartwatch.com/page//Fact%20Sheets/2009%20health%20care%20fact%20sheet_040709.pdf
--Mini-med for lower-level employees; terrible -- If an average full-time Wal-Mart employee
chooses the least expensive family coverage plan, they would have to spend over 20% of their
income before the health insurance provided any reimbursement.[ EBRI Issue Brief October
2007]
--An average full time Wal-Mart Associate faces a serious family health issue. They have to pay
the entire out-of-pocket maximum for the least expensive health plan, which adds up to pay 53%
of their income. [ EBRI Issue Brief October 2007]
--In 21 of 23 states where data is available, Wal-Mart forces more employees to rely on
taxpayer-funded health care than any other employer. ["Disclosures of Employers Whose
Workers and Their Dependents are Using State Health Insurance Programs, Good Jobs First,
June 26, 2007]
http://wakeupwalmart.com/facts/
The Wal-Mart average for full-time workers to qualify for benefits is six months, compared to
the
retail average of 2.6 months. Part-time employees must wait a full year before receiving benefits.
Since the
majority of workers do not stay a year, the majority never get health care.
http://action.walmartwatch.com/page//Fact%20Sheets/2009%20health%20care%20fact%20sheet_040709.pdf
“Better Health Care Together”
Offering $4 prescription drugs to customers and associates across America.
•
Reducing the eligibility waiting period by half for part-time associates.
•
Expanding coverage to the children of both full- and part-time associates by offering coverage for only 50
cents per day as soon as their parents are eligible.
•
Providing individual health care coverage for as little as $11 per month in some areas.
•
Promoting and supporting our associates’ wellness and healthy lifestyle choices by providing convenient,
affordable and innovative opportunities to make healthy choices every day.
http://walmartstores.com/FactsNews/FactSheets/
http://walmartstores.com/careers/7750.aspx
BENEFITS of walmart above.
Diversity/ Discrimination/EEO
Discrimination:
http://www.onlinelawyersource.com/sexualdiscrimination/women.html
Dukes vs. Walmart stores
Diversity: http://www.hispanicbusiness.com/news/2009/9/16/walmart_a_proven_diversity_leader.htm
ranking 4th out of 60……
http://walmartstores.com/Diversity/ ….what walmart says about their diversity
EEO – equal employment opportunity…looking at Walmart’s EEO statement….for 2005 and
2006…against 2004 EEO all industries….and against 2004 NAICS 45 Retail industry…..categories…female,
minority, asian, Hispanic, African American, native American Indian….broken down into branches such
as sales workers, office and clerical workers, craft workers, etc…. Walmart was competitive if not better
than the standard (NAICS and EEO) showing how diverse it really is.
walmartstores.com/download/2676.pdf
Employment laws----look in notes.
Labor Relations/ Unions
In 2005, two labor unions launched campaigns portraying Wal-Mart negatively. These included Wake Up
Wal-Mart (United Food and Commercial Workers) and Wal-Mart Watch (Service Employees
International Union). By the end of 2005, Wal-Mart launched Working Families for Wal-Mart, an
operation managed by Wal-Mart to tell the company's side of the story
In response, Jay Nordlinger of National Review argues that Wal-Mart is attacked simply because it is a
leader of the Fortune 500 list or the largest employer in America, and a "free-market success story"
the past, Wal-mart has been accused of locking night-shift workers in at night,[116] paying employees
below minimum wage, and exposing employees to health hazards.
anti-union policies: Wal-Mart has opposed the Employee Free Choice Act (EFCA), which would make it
easier for workers to unionize by removing the employer's ability to demand a secret ballot in union
elections, and which would require mandatory arbitration of labor disputes. Why is Wal-Mart antiunion?
Gosh, I don't think of us as being anti-union. I think of us as having a company where we have
an open-door policy. In this company, you can talk to your district manger. You can talk to Lee
Scott. You can talk to whoever you want to about what is happening. You don't have to go to a
third party and say "here is my issue." You can get your issue resolved. interview with scott;
http://www.businessweek.com/bwdaily/dnflash/sep2005/nf20050923_8061_db049.htm
brief history: http://walmartstores.com/AboutUs/
walmart was founded in 1962
In 1983 opened first Sams Club
employes 2.1 million associates worldwide
$ 405 billion in sales
The above is for the fiscal year ending in January 31, 2009. Net income: $13.6 billion
competition: Kmart, Target, ShopKo
Sam’s club competition Costco, BJ Wholesale Club
Some good quotes:
“Sam Walton strongly believed in making all associates partners in the success of our business and that
commitment is as strong as ever today,” said Linda Dillman, executive vice president of risk
management, benefits and sustainability.
http://walmartstores.com/FactsNews/NewsRoom/6428.aspx?rss=Associate_Benefits\
Forbes magazine, polling business executives (not employees) has ranked Wal-Mart among the best 100
corporations to work for (http://www.pbs.org/itvs/storewars/stores3.html)
Aka above = good for executives, bad for employees
Sam Walton's promise of a "better life for all" (same pbs citation) --this could be first slide with a ? mark
Things still to cover:
Employee compensation…is it low? controversy there
workers COMP!!!!!!!!