Wal Mart, the world's largest retailer, has been under fire for its employment practices. Also under fire is the pay and benefits package, which has a large population of Wal Mart workers receiving public assistance. New policies on pay, promotions, diversity, benefits, and how to notify cashiers of their breaks were unveiled at the company's annual shareholders meeting.It is estimated that California Wal Mart workers earn an average 31% less than workers employed in large retail stores, they receive around $9.70 per hour compared to $ 14.01. Also 23% fewer Wal Mart workers are covered by employer-sponsored health insurance. At these low wages many Wal Mart workers rely on public safety ...view middle of the document...
If the estimates for California are indicative of Wal Mart workers' utilization of safety net programs nationally, the cost to taxpayers nationally for public assistance would be as much as $2 billion a year.Wal Mart workers' reliance on public assistance due to substandard wages and benefits has become a form of indirect public subsidy to the company. In effect, Wal Mart is shifting part of its labor costs onto the public. It is estimated that the cost of the subsidy to Wal Mart in California for state taxpayers to be $86 million a year. Other retail firms that carry their own weight by providing self-sufficiency wages and employer-sponsored health insurance are placed at a competitive disadvantage, which can result in a downward cycle for wages and benefits across the industry. Wal Mart's long-term impact on compensation in the retail industry has the potential to place significant strain on the state's already heavily burdened social safety net. The estimated cost if large retailers throughout the state adopted...
