Posted by Thomas Nephew on 7th December 2012
Last week the Huffington Post’s Alice Hines reported,
Walmart, the nation’s largest private employer, plans to begin denying health insurance to newly hired employees who work fewer than 30 hours a week, according to a copy of the company’s policy obtained by The Huffington Post.
Under the policy, slated to take effect in January, Walmart also reserves the right to eliminate health care coverage for certain workers if their average workweek dips below 30 hours — something that happens with regularity and at the direction of company managers.
As several experts contacted for the story noted, the story is of a piece with other corporate actions responding to the Affordable Care Act (ACA) with labor cutbacks, such as the Papa John’s, Applebee’s and Olive Garden/Red Lobster announcements (discussed a couple of weeks ago on this blog) that the companies intended to move workers from full-time to part-time status to take advantage of provisions in the ACA.
“Walmart likely thought it didn’t need to offer this part-time coverage anymore with Obamacare,” said Nelson Lichtenstein, director of the Center for the Study of Work, Labor and Democracy at the University of California, Santa Barbara. “This is another example of a tremendous government subsidy to Walmart via its workers.” [...]
For Walmart employees, the new system raises the risk that they could lose their health coverage in large part because they have little control over their schedules. Walmart uses an advanced scheduling system to constantly alter workers’ shifts according to store traffic and sales figures.
[...] in recent interviews with The Huffington Post, several workers described their oft-changing schedules as a source of fear that they might earn too little to pay their bills. Many said they have begged managers to assign them additional hours only to see their shifts cut further as new workers were hired.
The new plan detailed in the 2013 “Associate’s Benefits Book” adds another element to that fear: the risk of losing health coverage. According to the plan, part-time workers hired in or after 2011 are now subject to an “Annual Benefits Eligibility Check” each August, during which managers will review the average number of hours per week that workers have logged over the past year.
As Marcy Wheeler (“emptywheel”) pointed out, she had already seen in late 2009 that “incenting s#!t plans” was an advertised feature of the developing health care “reform”, not a bug. Writing that the proposal was “a Plan to Use Our Taxes to Reward Wal-Mart for Keeping Its Workers in Poverty,” she explained in 2009,
…if Wal-Mart wanted to avoid paying anything for its employees under MaxTax, it could simply make sure that none of them made more than $14,403 a year (they’d have to do this by ensuring their employees worked fewer than 40 hours a week, since this works out to be slightly less than minimum wage). Or, a single mom with two kids could make $24,352–a whopping $11.71 an hour, working full time. That’s more than the average Wal-Mart employee made last year. So long as Wal-Mart made sure its employees applied for Medicaid (something it already does in states where its employees are eligible), it would pay nothing. Nada, zip. Nothing.
The upshot? Congratulations, America: you’re “subsidizing the gutting of our local economy so that the descendants of Sam [Walton] could continue to get disgustingly rich.” Read the rest of this entry »