Wal-Mart (WMT) is giving its workers better healthcare benefits.
According to The New York Times "Wal-Mart, the nation’s largest private employer, provides insurance to 100,000 more workers than it did just three years ago." H. Lee Scott Jr., the company’s chief executive, said “retrospectively now I say, yes, that plan needed to be improved.”
Next year, the retailer is likely to offer some form of health-care options to all of its US employees.
Part of the argument for having better benefits is that healthy workers don’t get sick as often and productivity is better. Tell that to Wal-Mart shareholders. The company’s same store sales in the US are running barely 1% year-over-year, and most of the company’s growth now comes from overseas.
Because Wal-Mart cannot fix its US operations, the company’s stock trades near its lowest point in five years, just above $43.
The people who work at Wal-Mart may look forward to a new wave of generosity from the company. Shareholders should be concerned. The right thing is rarely the cheap thing.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
