Originally Posted by majoe7
2. This works out to a $20,928 profit every minute.
Some of this profit is earned by cutting every employee's hours down to less than 40 hours per week. From my understanding, if employees work less than 40 hours per week, than the employer no longer has to provide benefits. Benefits cost the employer a considerable amount per employee, a very substantial % of the employee's wages. From what I could find online, it appears the cost to the EMPLOYER is about 25% to 40% of the employee's wages. So to make it easy, if the average employee made $7.00 per hour, and they indeed have 1.6 million employees, then I can see why Wal-Mart does not want to pay benefits.....
$7.00/hour X 25% benefits X 2080 hours/year (52 wks X 40 hrs per week = 2080) = $3640. This is the minimum cost for benefits per employee per year. Want to get interesting? At this cost, benefits costs for 1.6 million employees comes to $5,824,000,000 per year. Yes, that is over $5.8 BILLION per year. And that is just the minimum.
Now lets say that we go with Missouri's minimum wage, $7.25 per hour. And with the possibility that their benefits actually cost more like 40% of their wages. $7.25 per hour x 40% benefits x 2080 x 1.6 million employees = $9,651,200,000!!!! Now I suspect that there are states with higher minimum wage than Missouri, but I suppose $7.25 is close to being average.
So it appears that providing benefits would cost Wal-Mart anywhere from $5,824,000,000 to $9,651,200,000 in profits per year.....
Now if I did my math correctly, $7.25 x 40% benefits x 1.6 employees / 60 minutes = $77,333.33 benefits cost per minute. So benefits cost almost 4 times per minute
as much as the profit they make per hour
. Now we all know that they would pass this cost on to their customers.
Now, you say that their customers would not buy as much if the costs were higher? Very possibly true. But do you think as many people would buy from Wal-Mart if they knew that Wal-Mart is keeping their costs down by NOT paying benefits to 1.6 employees?
Now I definitely do NOT want to see Wal-Mart running the US Government!!!! Why? For starters, Wal-Mart sells more products that are made overseas than American Made products. I was unable to locate recent facts, but I did find this quote:
A March 1992 study by Goldman Sachs analysts George Strachan and Scott Ehrens indicates that Wal-Mart's move to private label goods may have reversed the chain's Made in America direction. Of 20 control-label skus (excluding Sam's American Choice products) which could be identified by country of origin, only two were made in the USA. The others were made offshore.
Keep in mind, this was back when Sam Walton was still around. It is my understanding that in 1989 he made another effort to bring a higher % of American made products in. But he has since passed away.... I can only guess what the % is today.....
These are JUST TWO of the problems I have with Wal-Mart: Wal-Mart does not pay benefits if they can avoid it (I confirmed this through a co-worker who's son used to work at Wal-Mart) and they have sent MANY jobs overseas.
I am not a big fan of Wal-Mart...... check out http://www.madeinusa.com/