Yes, oil companies have seen an increase in their profits, but I’m more concerned about another company with high earnings. Not only has this company made $2.54/share in the last year, it has rewarded its CEO with $12.5 million in compensation (not counting stock options) and $100,000 to cover personal use of the corporate jet, while it has also developed a plan to adjust its employee benefits. (I used to work for such a company and we engineers organized a union to have some effect on our benefits.)
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What company is this? Wal-Mart, who closed one of their Canadian stores after the workers voted in union representation.
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Here is some of what their VP of benefits suggests (see attached company memo) according to The New York Times:
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“hiring more part-time workers and discouraging unhealthy people from working at Wal-Mart”
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“reducing 401(k) contributions and wooing younger, and presumably healthier, workers by offering education benefits”
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“all jobs to include some physical activity (e.g., all cashiers do some cart-gathering)”
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“Ms. Chambers proposed that employees pay more for their spouse’s health insurance. She called for cutting 401(k) contributions to 3 percent of wages from 4 percent and cutting company-paid life insurance policies to $12,000 from the current level, equal to an employee’s annual earnings.”
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“Ms. Chambers’s memo voiced concern that workers were staying with the company longer, pushing up wage costs, although she stopped short of calling for efforts to push out more senior workers.”
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I have no doubt that the benefits at the high profit oil companies are much better than those at Wal-Mart.
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For more on Wal-Mart’s profits vs. employee benefits:
Wal-Mart forfeits soul to low prices
By LOREN STEFFY
Wal-Mart memo sparks criticism
Then there is the new Wal-Mart DVD.