Obamacare not such a jobkiller after all
Wal-Mart Returning To Full-Time Workers-Obamacare Not Such A Job Killer After All?
Wal-Mart, the nation’s largest employer, announced Monday that 35,000 part-time employees will soon be moved to full-time status, entitling them to the full healthcare benefits that were scheduled to be denied them as a result of Wal-Mart’s efforts to avoid the requirements of Obamacare.
While some analysts believe that the move comes as Wal-Mart is attempting to deal with the negative view many Americans have of its worker benefits program, a closer look reveals the real reason for the shift—
Wal-Mart’s business is going south due to the company’s penchant for putting politics and the squeeze on Wal-Mart employees ahead of the kind of customer satisfaction that produces prosperity over the long-term.
In fact, Wal-Mart’s unwillingness to pay most of their workers a livable wage, while avoiding enough full-time employees to properly run a retail outlet, has led to the company placing dead last among department and discount stores in the most recent American Customer Satisfaction Index—a position that should now be all to familiar to the nation’s largest retailer given that Wal-Mart has either held or shared the bottom spot on the index for six years running.
For anyone who has not been following the Wal-Mart saga, sales have been sinking dramatically at the retailer as the company has turned to hiring mostly temporary workers (those who must reapply for a job every 180 days) to staff their stores while cutting full-time employees’ hours down to part-time status in order to avoid providing workers with healthcare benefits.
Empty shelves, ridiculously long check-out lines, helpless customers wandering through the electronics section and general disorganization at Wal-Mart store locations.
This is hardly a recipe for success.
A recent description of a Wal-Mart store in Newark, New Jersey published by Bloomberg, says it all—
“Three days earlier, about 10 people waited in a customer service line at a Wal-Mart in Secaucus, New Jersey, across the Hudson River from New York, the nation’s largest city. Twelve of 30 registers were open and the lines were about five deep. There were empty spaces on shelves large enough for a grown man to lie down, and a woman wandered around vainly seeking a frying pan.”
The description pretty much sums up what you will find at the typical Wal-Mart store in the United States these days.
While the company’s trend toward temporary employees has allowed the retailer to avoid its responsibilities under the Affordable Care Act—a law that Wal-Mart publicly supported only to turn around after passage and work to avoid providing health care benefits to employees—they’ve managed to tank their store sales in the process.
Who would have guessed that a well-staffed store filled with competent and reasonably paid employees might actually have an impact on the success of a company?
Home Depot—that’s who.