Cancel 2016.2
The Almighty
The claim that Walmart helps the poor has been used to socially justify Walmart's low wages.
http://www.businessinsider.com/walmart-employees-pay
The claim that Walmart helps the poor has been used to socially justify Walmart's low wages.
The average Walmart "associate," Wake Up Walmart reports, makes $11.75 an hour. That's $20,744 per year. Those wages are slightly below the national average for retail employees, which is $12.04 an hour. They also produce annual earnings that, in a one-earner household, are below the $22,000 poverty line.
On the other hand, these wages are far above minimum wage of $7.25 an hour. They also aren't THAT FAR below the national retail average (only 2.5% below). In a two-earner household, moreover, these wages would produce a household income of $40,000+, which, in some areas of the country, is comfortably middle-class. Walmart offers benefits to some of its employees, as well as store discounts and profit-sharing plans.
The study uses Medicaid data released in Wisconsin to piece together the annual cost to taxpayers for providing a host of social safety net programs, including food stamps and publicly subsidized health care, to workers at one Supercenter in the state.
According to the report, Walmart had more workers enrolled in the state’s public health care program in the last quarter of last year than any other employer, with 3,216 people enrolled. When the dependents of those workers were factored in, the number of enrollees came to 9,207.
"When low wages leave Walmart workers unable to afford the necessities of life, taxpayers pick up the tab," the report says.
After accounting for the total number of Walmart stores and employees across the state and the per-person costs of BadgerCare, as the state’s health care program is known, the report's authors estimated that the cost of publicly funded health care comes to $251,706 per year for a 300-employee Supercenter.
Fact: Walmart is a Job Killer
Walmart store openings destroy almost three local jobs for every two they create by reducing retail employment by an average of 2.7 percent in every county they enter.[1]
Walmart cost America an estimated 196,000 jobs – mainly manufacturing jobs – between 2001 and 2006 as a result of the company’s imports from China.[2]
Fact: Walmart Jobs Are Poverty Jobs
Walmart workers average just $8.81 hour.[3] This translates to annual pay of $15,576, based upon Walmart’s full-time status of 34 hours per week.[4] This is less than 70% of the poverty line for a family of four.[5]
Walmart pays less than other retail firms. A 2005 study found that Walmart workers earn an estimated 12.4% less than retail workers as a whole, and 14.5% less than workers in large retail in general.[6] A 2007 study which compared Wal-mart to other general merchandising employers found a wage gap of 17.4%.[7]
Last year, Walmart slashed already meager health benefits, leaving more workers uninsured.[8]
Fact: Taxpayers Are Paying the Price for Walmart
Despite all the damage they have done to US workers and communities, a 2007 study found that, as of that date, Walmart had received more than $1.2 billion in tax breaks, free land, infrastructure assistance, low-cost financing and outright grants from state and local governments around the country.[9] This number has surely increased as Walmart continues to receive additional subsidies.
Taxpayers Subsidize Walmart’s Low Wages and Poor Benefits – In many states across the country, Walmart is the employer with the largest number of employees and dependents using taxpayer-funded health insurance programs.[10]
Walmart, one of the richest corporations in the world, refuses to pay its employees a livable wage or provide any form of decent healthcare, increasing reliance on government assistance, and the need for a social safety net.
At over $446 billion per year, Walmart is the third highest revenue grossing corporation in the world. Walmart earns over $15 billion per year in pure profit and pays its executives handsomely. In 2011, Walmart CEO Mike Duke – already a millionaire a dozen times over – received an $18.1 million compensation package. The Walton family controlling over 48 percent of the corporation through stock ownership does even better. Together, members of the Walton family are worth in excess of $102 billion – which makes them one of the richest families in the world.
What is shameful is that CEO Mike Duke makes more money in one hour, than his employees earn in an entire year. Yet, Walmart – which employs millions of people in its stores, distribution centers, and warehouses – continues to abuse its employees and refuses to pay them a livable wage. The company has frequently been charged with wage theft claims by workers who point to the most common forms of wage theft: the refusal to pay proper overtime, the refusal to honor the minimum wage, and illegal paycheck deductions.
Meanwhile, Walmart routinely blocks any attempt by workers to organize, using anti-union propaganda and scare tactics, firing employees without just cause, failing to provide any form of decent healthcare coverage or a livable wage.
To make matters worse, these abusive Walmart policies have increased employee reliance on government assistance and the need for a government funded social safety net. In fact, Walmart has become the number one driver behind the growing use of food stamps in the United States with "as many as 80 percent of workers in Wal-Mart stores using food stamps."
Wal-Mart's poverty wages force employees to rely on $2.66 billion in government help every year, or about $420,000 per store. In state after state, Wal-Mart employees are the top recipients of Medicaid. As many as 80 percent of workers in Wal-Mart stores use food stamps.
Walmart's employees receive $2.66 billion in government help every year, or about $420,000 per store. They are also the top recipients of Medicaid in numerous states. Why does this occur? Walmart fails to provide a livable wage and decent healthcare benefits, costing U.S. taxpayers an annual average of $1.02 billion in healthcare costs. This direct public subsidy is being given to offset the failures of an international corporate giant who shouldn’t be shifting part of its labor costs onto the American taxpayers.
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.
Large, low-wage employers want to preserve a loophole in Obamacare (the Affordable Care Act) that incentivizes them to cut hours and wages so their employees qualify for Medi-Cal -- California's version of Medicaid -- sticking taxpayers with the bill. A 2004 study by the UC Berkeley Labor Center found that Walmart workers’ reliance on public health care programs already costs California taxpayers $32 million per yea
Billy, I don't need Meijers when I have Fred Meyer.
Good ol' unbiased Business Insider, huh? You, and them, suck.
Fact: More Walmart employees are on food stamps than any other company.
Fact: One Walmart store's employees could cost taxpayers $900,000 in one year.
I remember your link showed the hourly pay wasn't a lot lower - but how many WalMart employees get fulltime work?
And Howey's link had a much greater pay discrepancy - maybe it was looking at annual wages vs hourly pay?