In a wave of purchases of online competitors, WalMart this year bought ModCloth (a place that sells pretty good vintage cocktail dresses) and Bonobos (one of those get-a-box-of-clothes-mailed-to-you joints).
A new report from the New York Times shows what that means for workers at those online outlets. Surprise, it's fucking terrible:
At Bonobos, an online men’s wear retailer that Walmart agreed to buy in June for $310 million, workers currently pay nothing in premiums for medical coverage in exchange for a deductible — that is, the level below which they are responsible for covering their own expenses — of $2,000 for individuals and $4,000 for families. A similar policy under Walmart’s plan will cost an individual about $750 more per year in premiums and a family nearly $4,000 more, according to documents on Walmart’s employee benefits website. Both plans will also feature a deductible that is 50 percent higher than the current one.
Some of the biggest changes appear to be occurring at another recent acquisition, ModCloth, an online retailer that made its name selling hip, vintage-inspired apparel to millennial women. To keep biweekly premiums for ModCloth’s roughly 300 workers relatively close to what they pay now, their deductibles will rise from nothing to several thousand dollars per year.
The story also offers a glimpse into what workers get at Amazon, WalMart's Seattle-based competitor.
Walmart offers hourly workers "consumer driven plans," which typically have low premiums and high deductibles. The company then pays into an account toward healthcare costs. At Walmart, that type of plan for a worker and child will cost about $67 biweekly and the company contributes $600, according to the Times.
At Amazon, a similar plan would cost $60 biweekly and Amazon would contribute $1,000. While a Walmart worker would have to pay up to $5,500 out of pocket after the company's $600, Amazon workers would pay only up to $3,000. The story does not specify whether those benefits are for Amazon's tech workers or warehouse workers. Read more here.