Healthcare reform is a major issue for retailing just as it is for most of America. But, devilish details have a way of thwarting progress as parties suggest that compromise is needed - just as long as their side is not doing the compromising.
The latest dustup in healthcare reform debate within the retailing industry has Walmart and organized labor on one side (no joke) and the National Retail Federation on the other.
Late last month, Wal-Mart Stores came out and endorsed one of the proposals bouncing around Capitol Hill that would mandate companies of a certain size to provide healthcare coverage to employees.
In a letter to President Obama, Leslie Dach, executive vice president, corporate affairs and government relations for Wal-Mart, wrote, "The present system is not sustainable. The status quo is not an option."
He added, "We believe in shared responsibility and support an employer mandate that is broad and fair. We believe the mandate should cover as many businesses as possible, and cover part-time as well as full-time employees."
Yesterday, Tracy Mullin, president and CEO of the National Retail Federation (NRF), criticized Wal-Mart (not a member of the group) for pushing for mandates on employers, saying passage of such legislation would be "catastrophic for our industry."
According to Ms. Mullin, "Mandates would drive up costs for retailers while doing nothing to address waste, inefficiencies and lack of competition. Ultimately, employers forced to spend more on insurance would have little choice but to reduce payrolls or raise prices - and that's the last thing retail employees or shoppers need right now."
The Retail Industry Leaders Association, of which Wal-Mart is a member, released a statement by its senior vice president of government affairs, John G. Emling, that said, "Although we have not expressly opposed a mandate that every employer offer a minimum level of health insurance, we are highly skeptical of a one-size-fits-all approach that could create barriers to hiring entry level employees."
Discussion Questions: Is doing nothing on healthcare something retail businesses can afford? What are your thoughts on mandates on employers to provide coverage?