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UFCW Union, Local 876: Wal-Mart's Growing Health Care Crisis Costs Taxpayers Billions

Posted on: Wednesday, 1 March 2006, 15:00 CST

MADISON HEIGHTS, Mich., March 1 /PRNewswire/ -- Wal-Mart's health care crisis cost Michigan taxpayers nearly $23.2 million last year, according to results of a new study released yesterday by the United Food and Commercial Workers (UFCW) Union, Local 876. The report, "America Pays, Wal-Mart Saves," estimates American taxpayers spent nearly $1.4 billion in 2005 to subsidize Wal-Mart's health care costs.

"Every day, the Wal-Mart health care crisis in America worsens. It's time Wal-Mart, a company with $11 billion in profits last year, stops exploiting taxpayers and its employees, and starts living up to its health care responsibilities," Victoria Collins, UFCW Local 876's president, said. "Wal-Mart's failure to provide affordable company health care to 57 percent, over 775,000, of its workers is a serious and growing problem for the entire nation."

It is projected taxpayers will pay a whopping $9.1 billion from 2006 to 2010 if the Wal-Mart Health Care Crisis remains unchecked according to the report, compiled by WakeUpWalMart.com to highlight its latest initiative, "Stop the Wal-Mart Health Care Crisis."

"Since Wal-Mart and other large corporations refuse to act responsibly when it comes to their employees' health insurance, Wake Up Wal-Mart is coordinating a nationwide effort to gain support for additional states to adopt legislation modeled after Maryland's 'Fair Share Health Care' bill," Collins said. "Earlier this year, the Maryland House and Senate overrode their governor's veto of the bill, protecting the state from Wal-Mart's Health Care Crisis."

The Maryland bill requires large employers to spend at least eight percent of their payroll in the state for employee health insurance coverage or pay the difference into a state fund for publicly funded programs for the uninsured. A similar bill, SB 734, was introduced in Michigan by Sen. Raymond Bashman (D-Taylor).

"It's time the taxpayers stopped subsidizing deadbeat corporations and they begin to pay their fair share when it comes to health care," Bashman said. "Or better yet, join the fight for national health care."

A national retail association has challenged the Maryland bill in federal court, and opponents of the legislation, including Wal-Mart, continue to fight efforts in the 30 other states looking to adopt the legislation.

Many current and former Wal-Mart employees across the nation have spoken out in support of the legislation telling their personal stories highlighting the unaffordability of the health insurance offered by Wal-Mart.

"When I had health insurance at Wal-Mart, I was earning $8.50 an hour and it cost me $62 a week for my health insurance. If I had to go to the doctor, I would still have to pay more fees there and it would end up costing me more than I would make," Nancy Cavasnick, who worked at Wal-Mart in Chesterfield Township, MI for almost three years, said. "If anyone can afford to give their employees health care benefits, it's Wal-Mart."

United Food and Commercial Workers Union, Local 876

CONTACT: Mark Charrette of United Food and Commercial Workers Union,Local 876, +1-800-321-6406

Source: PRNewswire

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