Wal-Mart Stores Inc. (NASDAQ:WMT) Cuts Health Benefits

Wal-Mart Stores Inc. (NASDAQ:WMT) is currently in the process of increasing premiums on health insurance and reducing health benefits for thousands of its workers. The new scheme will be implemented from January 1^st. After that, there will be a 19% rise in the bi-weekly premiums of the company’s most popular insurance plans. The new premiums will be worth $21.90. The new scheme will be applicable to the entire U.S. based workforce of the company. Wal-Mart Stores Inc. (NASDAQ:WMT) will no longer be obliged to provide health insurance to the part-time employees, i.e. those who work fewer than 30 hours per week. About 2% of the company’s workforce comprises these part-time employees which number about 30,000.

Of course, all the employees are outraged. An associate who is working at a Wal-Mart Stores Inc. (NASDAQ:WMT) store in Mississippi said that most of the employees he comes across are already struggling to make two ends meet without the company taking away these little benefits from them. Considering this, it is only likely that all the employees are furious. One part-time employee at a store in Missouri said that the new changes in health benefits may be cost-cutting for the company, but for many employees, the company is forcefully taking away something that is rightfully theirs. This particular worker is already doing two jobs and has the benefit of health insurance plan with the full-time employer. This is why the changes by Wal-Mart Stores Inc. (NASDAQ:WMT) will not affect her deeply. But she speaks for her co-workers who are barely surviving even after they have served 20 years for the company.

Wal-Mart Stores Inc. (NASDAQ:WMT) had recently made the decision to change the uniforms for their employees. This also enraged the employees because they were unable to afford the new uniforms. Anyway, soon after this decision, Wal-Mart Stores Inc. (NASDAQ:WMT) made the changes in their insurance policies for their workers.

One associate at the Wisconsin store said that the employees were already upset about the new uniforms. But now, the company has gone too far to take away the insurance benefits from part-time employees. Most of the part-time employees are in need of these benefits.

On an average, Wal-Mart Stores Inc. (NASDAQ:WMT)’s part- and full-time employees make $11.83 per hour. That is almost $25,000 dollars per annum according to the company. There is a group called OUR Wal-Mart that is demanding higher wages by the company. They claim that most of the workers actually earn below $9. This figure is based on the data collected by IBISWorld and Glassdoor.com.The minimum wage for one hour is $7.25 in the U.S. The senior Vice President for benefits, Sally Welborn said that the costs for health care are increasing day-by-day for everyone. The company is also arguing that their insurance premiums are still better than those offered by other retailers. In 2014, the Wal-Mart Stores Inc. (NASDAQ:WMT) employees were paying 32% less than the average out-of-pocket costs and contributions in the industry.