Why Wal-Mart is a horrible place to work
Effective January 1st 2015, employees who work less than 30 hours per week at Wal-Mart will no longer have health insurance. The company is claiming that higher health care costs will still hurt Wal-Mart to the tune of $170 million for the fiscal year.
Wal-Mart has a long history of treating their employees poorly. We won’t mention the little girl nearly decapitated by a fishing line or the customer shot by police in a Wal-Mart for holding a toy gun, or the series of parking lot rapes due to Wal-Mart’s non-existent security. We’ll just stick to how they compensate their employees.
In February, a Wal-Mart worker answered questions on Gawker that raised quite a stir. The worker pointed out that managers are given incentive to fire employees so that their wages do not increase and payroll remains low.
70% of their employees leave within the first year. I know some who have taken that one step further, like Sam Tabar, who left after a month! You must work one full year at Wal-Mart to get a raise. Because of “salary caps”, some employees have not received a raise in nine years. All employees must be available to work every day, including Christmas.
The average Wal-Mart employee earns 20% less than the average retail worker. The Los Angeles Alliance for a New Economy claims that Wal-Mart’s pay is $10,000 less than what a family of two needs to survive. There have been times, including in 2001, when full time employees were still living under the poverty line (that’s less than $14,630 for a year’s work).
In 2008, Walmart settled massive lawsuits over wage violations based primarily around Wal-Mart forcing employees to work off the clock. They handed out over 350 million dollars to avoid going to court.