Excessive Profits? – What About Employee Benefits?

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.)
 
What company is this?   Wal-Mart, who closed one of their Canadian stores after the workers voted in union representation.
 
Here is some of what their VP of benefits suggests (see attached company memo) according to The New York Times:
 
“hiring more part-time workers and discouraging unhealthy people from working at Wal-Mart”
 
“reducing 401(k) contributions and wooing younger, and presumably healthier, workers by offering education benefits”
 
“all jobs to include some physical activity (e.g., all cashiers do some cart-gathering)”
 
“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.”
 
“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.”
 
I have no doubt that the benefits at the high profit oil companies are much better than those at Wal-Mart.
 
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.