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3 July 2009

Daring Move

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Daring Move

Wal-Mart is marching on its own in its decision to support employer-paid health care. It is a daring move that has upset peers in retail and in most of industry for that matter. But, the company is so large it can take a contrarian position and make it stick. Why Wal-Mart has decided to break ranks is not entirely clear, but it obviously has good reasons for doing so. Economically, with its huge employee population, the company will be able to negotiate better deals for health insurance than smaller competitors.

From a PR perspective, the company's position is forward thinking and guaranteed to put it in a better light. Even if in the end employers don't have to provide health insurance, Wal-Mart will have gained a reputation for concern for employees. This is a huge change from a few years ago when the company was accused of exploiting its workers.

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