Walmart: Still not the good guy.
The Wall Street Journal is on top of the latest infighting amongst the retail industry over health care:
The retail industry’s biggest trade group is launching a broad attack against Wal-Mart Stores Inc. for supporting congressional proposals requiring employers to help pay for health insurance, an idea that has gained political currency thanks to the backing of the nation’s largest private employer.
Yawn. Tell me something new this morning, JR. OK:
Industry observers viewed Wal-Mart’s break from the retail pack and support of the initiative as a shrewd political tactic aimed at strengthening its competitive advantage against other retailers — and bolstering its image. Its endorsement letter to the White House was co-signed by Andy Stern, the president of the Service Employees International Union, and John Podesta, the chief executive of the left-leaning Center for American Progress.
While most retailers believe the new employer health-care obligation would drastically increase their expenses, and perhaps force them to cut employees to reduce payroll costs, Wal-Mart believes it can withstand any added costs the plan would bring.
“We know that others may have a different opinion, but we believe that we have taken a pro-business position,” Wal-Mart spokesman David Tovar said, adding, “The present system is not sustainable.”
[Wal-Mart]That confidence stems from the head start Wal-Mart has achieved in recent years after it boosted its employee health-care programs in response to criticism from unions.
[Emphasis added]
Woo hoo! Hurray for unions!!! Everybody reading this right now should send the UFCW an e-mail and thank them for their efforts towards the cause of universal health care. And before we let Walmart take its victory lap, remember this:
Costco Wholesale Corp. for years has enjoyed a reputation for generous health benefits — more than 90% of its workers have coverage with the company — and executives have defended their strategy as a boon to productivity.
Costco Chief Financial Officer Richard Galanti said Wal-Mart probably recognizes it is “going to be dragged into providing coverage one way or another, and might as well drag everyone else in retailing along with them.”
To review: Unions are good. Costco is good. Walmart is…not exactly committed to universal health care for the purest of motives, but it sure beats the alternative.
PS Come to think of it, I have yet to see one angry libertarian write about Walmart’s betrayal of free market principles. If somebody finds one, would you please leave the URL in the comments?