Jan. 13, 2006 - 15:47 MST

HITS THE FAN

Some concrete stuff in an article by Kristen Wyatt of the Associated Press in the business section of today's Rocky Mountain News. In full:

MARYLAND OKS WAL-MART BILL

Retailer required to spend more on workers' health care

ANNAPOLIS, MD.-- "Maryland legislators voted Thursday to enact a first-in-the-nation requirement that Wal-Mart Stores Inc. spend more on employee health care. The measure, touted as a money-saver for the state-supported Medicaid program, takes effect despite the governor's veto of the bill."

"Labor unions have said they are seeking similar legislation this year in at least 30 other states, including Colorado. Supporters of the measure say the retailing giant unfairly takes advantage of taxpayer-funded health care plans because some workers are paid too little for them to afford Wal-Mart's health insurance."

"The taxpayers are giving a health-care subsidy to the largest retailer on earth," argued Democratic Delegate Kumar Barve. The House and Senate, both controlled by Democrats, both notched the three-fifths margins needed to override a veto last May by Republican Gov. Robert Ehrlich."

"The bill requires companies with more than 10,000 Maryland employees to spend at least 8 percent of their payroll on employee health care or pay the difference into the state's Medicaid fund."

"Of the state's large employers, only Wal-Mart spends less than 8 percent on health care."

"It employs about 17,000 Marylanders at more than 40 Wal-Marts and Sam's Clubs, and about 1.3 million nationwide."

Critics of the legislation called it a dangerous precedent that ultimately would cost Maryland jobs."

"A Wal-Mart executive called the bill a poorly worded mandate for a single company."

"Wal-Mart spokeswoman Mia Masten said Thursday that the bill "could be the beginning of a slippery slope."

"We believe everyone should have access to affordable health insurance, although this legislation does nothing to accomplish that," said Masten, who said the retailer may partially pull out of Maryland if the bill becomes law."

"She said Wal-Mart was singled out because of "partisan politics" and that Medicaid's problems go beyond the behavior of one company."

"The veto override had been intensely lobbied, with business groups taking out print ads supporting a veto and labor groups rallying and taking out their own ads siding with supporters."

"The decision is being closely watched by labor unions and legislatures around the country."

"We expect that today's vote will generate important momentum in many other state legislatures," said Nu Wexler, a spokesman for Washington-based Wal-Mart Watch, which is funded by a union."

"Some Maryland Democrats had harsh words for Wal-Mart, which is based in Bentonville, Ark."

"Don't dump your employees that you refuse to insure into our Medicaid system," said the bill's sponsor, Sen. Gloria Lawiah."

"In the House, Delegate Anne Healey compared Wal-Mart to a schoolyard bully. But House Republican leader George Edwards called the measure an unwarranted intrusion into private enterprise."

"If you don't want to work for Wal-Mart, no one's twisting your arms. Go somewhere else and work," Edwards said."

"The company faces legal pressure nationwide. In Pennsylvania, a judge this week approved a class-action lawsuit by employees who say they were pressured to worke off the clock. Last month, A California jury awarded workers $172 million for illegally denied lunch breaks, and Wal-Mart settled a similar Colorado case for $50 million."

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The whole thing reminds me that every time an increase is proposed in the minimum wage -- those opposing it scream that no one will be able to pay the minimum wage. But every now and then the minimum wage is raised. Just not enough for a single man to pay rent, buy groceries and gas.

Something is quite obvious here, in this instance, to my mind. Quote, "The bill requires companies with more than 10,000 Maryland employees to spend at least 8 percent of their payroll on employee health care or pay the difference into the state's Medicaid fund." And quote again, "Of the state's large employers, Only Wal-Mart spends less than 8 percent on health care."

Spokeswoman Mia Masten said among other things, "who said the retailer may partially pull out of Maryland when the bill becomes law." Wal-Mart seems to try to skirt the legality and ethics of fair play. Seems I remember that the meat cutters were trying to organize, Wal-Mart did away with the meat cutter classification. So some outside entity does their meat cutting I guess. "She said Wal-Mart was singled out because of "partisan politics." Seems to me that the law if enacted covers any company or corporation with 10,000 or more employees. So does that mean that Wal-Mart will pull out completely from Maryland, or just cut their work force to 9,999 people and expect the miracle of their remaining sales force (or as they call them "Associates") to make up the difference, employees left just jumping through the hoops to keep the boat afloat ?

Then Maryland House Republican Leader George Edwards called the measure an unwarranted intusion into private enterprise. "If you don't want to work for Wal-Mart, no one's twisting your arms. Go somewhere else and work." Which to me demonstrates a typical Republican philosphy . . . . . . .

If the unions and folks with common sense get legislation into effect in all our states, then Wal-Mart will have no choice but to comply when the Isht HITS THE FAN . . . . . . . . . .

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