Wal Mart Memo

Wal-Mart Memo: Unhealthy Need Not Apply

Wal-Mart is the world's largest retailer as well as the largest U.S. private-sector employer, and currently in their HQ a storm is brewing over a leaked memorandum to the board of directors. The memo proposes numerous ways to hold down spending on health care and other benefits while seeking to minimize damage to the retailer's reputation. Among the recommendations are hiring more part-time workers and discouraging unhealthy people from working at Wal-Mart.

In the memo, M. Susan Chambers, Wal-Mart's executive vice president for benefits, recommends a plan to take "5 bold steps" in order to take less of a hit from rising health insurance costs. Some ideas include reducing 401(k) contributions and wooing younger, and presumably healthier, workers by offering education benefits. The memo voices concern that workers with seven years' seniority earn more than workers with one year's seniority, but are no more productive.

Chambers even wants to go as far as discouraging those who are unhealthy from working at their stores. To discourage unhealthy job applicants, Ms. Chambers suggests that Wal-Mart arrange for "all jobs to include some physical activity." She suggests that everyone from clerks to chefs perform some type of activity within their daily routine. For example, recently Wal-Mart stores are hiring more cashiers so that they can rotate between picking up carts and handling money.

The company is under extreme scrutiny because less than 45 percent of its workers receive company health insurance. Wal-mart's closest competitor, CostCo, covers more than 80% of their employees. Wal-Mart announced a new plan on Monday that seeks to increase participation by allowing some employees to pay just $11 a month in premiums. Some health experts praised the plan for making coverage more affordable, but others criticized it,