October 26, 2005

The Internal Memo

Stephen Greenhouse and Michael Barbaro of The New York Times obtained a copy of an internal Wal-Mart memo discussing how to balance benefits costs with Associate satisfaction and public reputation.

I'll read it all later, but I have to note how carefully written even internal Wal-Mart memos are... For instance, contra Greenhouse and Barbaro, the memo doesn't state that Wal-Mart should "discourage" unhealthy workers, but that "Wal-Mart should seek to attract a healthier workforce."

H/T:Credo Advisors

UPDATE: Ah, Ms. Chambers does use the word "dissuade" (She'll think twice about that again), and I agree that the NYTimes did a good job at getting beyond the verbiage. It's true, Wal-Mart proposed that it make jobs more physical so as to make the jobs less attractive to unhealthier people. But there's so much more in this report than that.

What I don't understand is why the unhealthier people like Wal-Mart's health insurance more than the healthy!

Most troubling, the least healthy, least productive Associates are more satisfied with their benefits than other segments and are interested in longer careers with Wal-Mart.

Read the comments below, as the first reflects heart-felt opinion, and the second good thinking.

Posted by Kevin on October, 26 2005 at 09:53 AM

Comments & Trackbacks
demiozkan wrote:

Mr. H. Lee Scott, puts out enough propane butane and methane to heat Benntonville, Arkansas. So why hire handicapped or people with disabilities. Mr. Scott doesn't sweat he just pouts and spills his orders so his crew of weak managers will put the heat one everyone. So at some stores the greeters will be getting the carts in. Some stores you must park so far from the facility your life is in danger especially if you are a woman or older worker. Talk is cheap Mr. Scott, so if you want to cut the fat lets cut your salary by half. That would be a begining. Then the do nothing management would be another part of getting rid of the pork called Wal Mart. The American Dream has become the American nightmare. I encourage all to call their congressman, call Benntonville call Mr Scott. Just like it will be the customers who will send a message. Mr. Scott feel the heat your job might be on the line .

-- October 26, 2005 06:32 PM

Peter Begley wrote:

Kevin: Thanks for the link! I like the point you make about "how carefully written" Wal*Mart's memos are, as well as the distinction between what the NYT article implies that the memo states, and the verbiage that is actually used. It's a solid point and well put. However, if you pull back a little and move beyond the careful, and legally-driven, word choice of the memo, the content is still the same as what the NYT article implies. 'How can we cut costs and make more profit? Heck, let's start choosing workers that require less overhead...'

I’m wondering how quickly this will evolve into a conversation about discrimination of individuals based on race-specific genetic predisposition for certain diseases.

-- October 27, 2005 12:07 AM

agamakis wrote:

Lee Scoot should apply for CEO of Krispy Kraam, they are a looser and so is he. Lee Scott should call the President and have Susan Chambers be nominated for Justice of the Supreme Court. The sound of Wal Mart Farts are filling the air and their spin on what the memo really meant. The next one will be they will not allow un-healthy people to shop at Wal Mart, because they are so concerned about everyone's health.
They continue to do wrong things wrong.
Bring Back Tom C. another Wal Mart crook but he only took money.
At leat Tom C was not trying to cut out jobs.
One day they want you to work like a field hand and then the next thing they want you to cut your hours and become part time. No benefits for part timers.
I will stop now to but on my boots because all that comes from Benntonville is pure cow poop.
Thank Susan and Lee Scott for making us see your true colors.
Do not spend you money with Wal Mart or buy their Stock and let them know the people have a voice.
Mr. Scott how much of your salary will you cut to save the company? Call CNN or Send this to a friend of family of Wal Mart employees.
Make phone calls and tell them they are not allowed to discriminate against people like they do their employees.

-- October 28, 2005 07:47 AM