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After Sales Plummet, Walmart Realizes It Can’t Run Stores On Temps Alone [View all]
After Sales Plummet, Walmart Realizes It Can’t Run Stores On Temps Alone
By Aviva Shen
After cutting employees’ hours so deeply that stores could not keep their shelves stocked, Walmart is adding more full-time workers in time for the holiday shopping season. The retail giant has been shedding customers recently due to disorganized stores and empty shelves.
Walmart started aggressively cutting staff during the recession. Over the past five years, its total American workforce dropped by 120,000, even as the company opened more than 500 new U.S. stores. The result is longer check-out lines, backlogged inventory, and poor customer service — not to mention employee protests all over the country. Now, amid plunging sales and massive strikes, even Walmart has conceded it can’t run a business on a skeleton crew. Over the next few months, the company will move 35,000 part-time workers to full-time, and another 35,000 temporary workers will become part-time staff.
After the Affordable Care Act kicks in January 1, Walmart’s new full-time employees will be eligible for health insurance after 90 days, a vast improvement on the retailer’s usual 6-month waiting period. To qualify for benefits, part-time staff must work an average of 30 hours a week for a year — no small feat at a company known to abruptly cancel shifts, cut hours, and lay off workers at any moment.
While most stores will hire an army of temporary workers to handle the holiday season rush, Walmart has been relying almost exclusively on temps year-round. A Reuters survey of 52 stores in June found that most were hiring only temps, who must re-apply for their jobs after 180 days. Meanwhile, existing long-time employees have seen their hours reduced drastically.
- more -
http://thinkprogress.org/economy/2013/09/24/2669191/walmart-adds-fulltime-workers/
By Aviva Shen
After cutting employees’ hours so deeply that stores could not keep their shelves stocked, Walmart is adding more full-time workers in time for the holiday shopping season. The retail giant has been shedding customers recently due to disorganized stores and empty shelves.
Walmart started aggressively cutting staff during the recession. Over the past five years, its total American workforce dropped by 120,000, even as the company opened more than 500 new U.S. stores. The result is longer check-out lines, backlogged inventory, and poor customer service — not to mention employee protests all over the country. Now, amid plunging sales and massive strikes, even Walmart has conceded it can’t run a business on a skeleton crew. Over the next few months, the company will move 35,000 part-time workers to full-time, and another 35,000 temporary workers will become part-time staff.
After the Affordable Care Act kicks in January 1, Walmart’s new full-time employees will be eligible for health insurance after 90 days, a vast improvement on the retailer’s usual 6-month waiting period. To qualify for benefits, part-time staff must work an average of 30 hours a week for a year — no small feat at a company known to abruptly cancel shifts, cut hours, and lay off workers at any moment.
While most stores will hire an army of temporary workers to handle the holiday season rush, Walmart has been relying almost exclusively on temps year-round. A Reuters survey of 52 stores in June found that most were hiring only temps, who must re-apply for their jobs after 180 days. Meanwhile, existing long-time employees have seen their hours reduced drastically.
- more -
http://thinkprogress.org/economy/2013/09/24/2669191/walmart-adds-fulltime-workers/
Getting tired of those settlements? Attempting to repair its image? Losing profits due to depraved business model?
All of the above?
63 replies
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