WalMart the grinch that stole more than Christmas from one employee-by Eli
I read with great concern the story of Deborah Shank a former WalMart employee who suffered permanent brain damage in an auto accident (she did not cause) seven years ago and after winning her personal injury lawsuit lost all the monies to her former employer.
The story appeared in the Wall Street Journal and then on the editorial pages of the LA Times .
Originally, WalMart did the right thing allowing the employee's company subsidized health care coverage to pay the initial nearly $500,000 in medical bills. But apparently this past week the US 8th Circuit Court of Appeals has awarded WalMart the entire $417,477 legal award leaving NO MONEY for proper care of Ms. Shank. She now will be at the mercy of Medicaid and social security leaving her with the lowest level of care available.
The other oddity is that despite the fact that the lawsuit was paid for by Ms. Shank's family, WalMart is entitled to all recouped funds as per the terms of its health care contract with employees.
The issue as outlined by the LA Times is the difference between what is legally WalMart's and what is the right and humane thing to do.
This incident continues to show that WalMart plays both sides of the game with their brand. On the "public" side they want their image (through ad campaigns) to be one that shows them as compassionate to employees and an outstanding community contributor. On the other "private, corporate side" WalMart executives and legal teams work tirelessly to find ways to avoid unionization and healthcare reforms that might cost them money....and keep the Walton family ridiculously rich, top executives extremely well-paid and stockholders happy.
Ultimately, this duality undermines the brand and its long-term success which is becoming more apparent everyday as WalMart's sales and profit performance weakens year to year. Maybe WalMart's top brass will wake up one day and realize that penny wise (recouped monies in this case) is pound foolish.
Watching out for you everyday.
Eli




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