Walmart moving thousands of part-time workers to full-time status | Arkansas Blog

Thursday, October 3, 2013

Walmart moving thousands of part-time workers to full-time status

Posted By on Thu, Oct 3, 2013 at 11:39 AM

click to enlarge WIKIPEDIA
  • Wikipedia
A Forbes columnist, Rick Ungar, analyzes the announcement this week by Walmart that it would be moving 35,000 part-time workers to full-time status. They'll get more hours, but they'll also qualify for the company's group health insurance. Take that Obamacare critics, who say it's a job killer.

The writer is looking well beyond Obamacare to the penny-wise, pound-foolish move to use part-time workers. 

In fact, Wal-Mart’s unwillingness to pay most of their workers a livable wage, while avoiding enough full-time employees to properly run a retail outlet, has led to the company placing dead last among department and discount stores in the most recent American Customer Satisfaction Index—a position that should now be all too familiar to the nation’s largest retailer given that Wal-Mart has either held or shared the bottom spot on the index for six years running.

... The result?

Empty shelves, ridiculously long check-out lines, helpless customers wandering through the electronics section and general disorganization at Wal-Mart store locations.

Others have been down this road.

According to Zeynep Ton, a retail researcher and associate professor of operations management at the MIT Sloan School of Management, in the early 2000s, Home Depot’s CEO, Robert Nardelli, moved to cut full-time staffing levels while increasing part-time employees in an effort to boost profits by trimming the expense that comes with employing full-time workers. It worked for a short while. However, as Ton notes, eventually customer service declined—and with it, customer satisfaction—leading to a severe decline of same-store sales.

And then there's Costco, whose profit growth has outstripped Walmart despite workers (many of them unionized) paid 40 percent more than a Walmart worker.

Tags: , , ,

From the ArkTimes store

Favorite

Comments (15)

Showing 1-15 of 15

Add a comment

 
Subscribe to this thread:
Showing 1-15 of 15

Add a comment

More by Max Brantley

Readers also liked…

Most Shared

  • So much for a school settlement in Pulaski County

    The Arkansas Democrat-Gazette's Cynthia Howell got the scoop on what appears to be coming upheaval in the Pulaski County School District along with the likely end of any chance of a speedy resolution of school desegregation issues in Pulaski County.
  • Riverfest calls it quits

    The board of directors of Riverfest, Arkansas's largest and longest running music festival, announced today that the festival will no longer be held. Riverfest celebrated its 40th anniversary in June. A press release blamed competition from other festivals and the rising cost of performers fees for the decision.
  • Football for UA Little Rock

    Andrew Rogerson, the new chancellor at UA Little Rock, has decided to study the cost of starting a major college football team on campus (plus a marching band). Technically, it would be a revival of football, dropped more than 60 years ago when the school was a junior college.
  • Turn to baseball

    When the world threatens to get you down, there is always baseball — an absorbing refuge, an alternate reality entirely unto itself.

Most Viewed

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation