Suffolk County, NY to Wal-Mart: Pay for worker health care

Suffolk County on Long Island is on the verge of passing a law to force big-box retailers like Wal-Mart, BJ’s and K-Mart to contribute to their workers’ health coverage. The vote, by the Republican-controlled county legislature, was 17 to 1.

Labor organizers have had retailers like Wal-Mart in their sights, accusing the company and other giant retailers of keeping wages low while not offering health insurance or requiring employees to pay large portions of the premiums. That forces many workers to turn to Medicaid or other county-funded programs in an already overburdened public health care system, said one of the bill’s cosponsors, William J. Lindsay, a Democrat.

Paul J. Tonna, a Republican, said that as a result, “Wal-Mart has profited off the public sector to the tune of billions of dollars.”

The operative word in this Republican-led decision is “Medicaid.” The county costs of New York’s Medicaid program is a huge issue in state politics and a pet issue of conservatives in particular. It is nice to see someone from New York, regardless of party, clearly articulating how companies like Wal-Mart are growing fat at taxpayers’ expense.

6 Comments

JanetT in MD on September 28, 2005 at 11:39 am

The Maryland State legislature passed a law like this last year — it required all large employers (with over 8,000 employees) to pay a certain percentage of their personnel costs towards worker healthcare. Wal*Mart objected, claiming that the bill targeted them — which was technically true, as every OTHER large employer in the state already meets those requirements without a law forcing them to do so.

The (Republican) Governor vetoed the bill, but the Legislature is expected to override the veto next session.

The more jurisdictions enforce this kind of legislation, the better….

NYCO on September 28, 2005 at 11:55 am

Suffolk County apparently has enough votes to override any veto on this.
- Parker on September 28, 2005 at 1:07 pm
  
  These are the kinds of referendums that every DFA group should try and get on their ballots.
  
  I’d love to see Wal-mart fight 500 of these at the same time.

boran2 on September 28, 2005 at 12:31 pm

Great news! Part of the cost of those “low prices” is born by all those Walmart workers. They are finally getting their due even if medicaid costs are the catalyst.

Parker on September 28, 2005 at 12:38 pm

Montana is trying to do the same:

Montana Bill Would Use Tax on Big-Box Stores to Offset Welfare Expenses Paid to Low-Wage, Part-Time Employees

Montana taxpayers are tired of subsidies for big-box stores, whose low prices and big profits depend on their low wages and public assistance for their workers, says state Democratic Senator Ken Toole, sponsor of a bill that would offset these welfare costs by charging Wal-Mart, Target, Costco and similar stores a 1 percent tax on more than $20 million in sales, 1.5 percent on more than $30 million and 2 percent on more than $40 million.

The tax, reports Reuters from Montana, would apply to stores more than 25 percent of whose employees work part time and whose full-time employees make less than $22,000 a year. Citing research that found state taxpayers spend about $421,000 a year for every Wal-Mart store with 200 employees, Senator Toole estimates that the tax would affect 160 stores — about half of Montana retail — and raise some $20 million annually.

Isis on September 29, 2005 at 12:06 am

Thanks NYCO and Parker for the information. I’m thrilled to hear this. The House of Cards is rapidly falling. . . .

JanetT in MD on September 28, 2005 at 11:39 am

The Maryland State legislature passed a law like this last year — it required all large employers (with over 8,000 employees) to pay a certain percentage of their personnel costs towards worker healthcare. Wal*Mart objected, claiming that the bill targeted them — which was technically true, as every OTHER large employer in the state already meets those requirements without a law forcing them to do so.

The (Republican) Governor vetoed the bill, but the Legislature is expected to override the veto next session.

The more jurisdictions enforce this kind of legislation, the better….
- NYCO on September 28, 2005 at 11:55 am
  
  Suffolk County apparently has enough votes to override any veto on this.
  - Parker on September 28, 2005 at 1:07 pm
    
    These are the kinds of referendums that every DFA group should try and get on their ballots.
    
    I’d love to see Wal-mart fight 500 of these at the same time.
boran2 on September 28, 2005 at 12:31 pm

Great news! Part of the cost of those “low prices” is born by all those Walmart workers. They are finally getting their due even if medicaid costs are the catalyst.
Parker on September 28, 2005 at 12:38 pm

Montana is trying to do the same:

Montana Bill Would Use Tax on Big-Box Stores to Offset Welfare Expenses Paid to Low-Wage, Part-Time Employees

Montana taxpayers are tired of subsidies for big-box stores, whose low prices and big profits depend on their low wages and public assistance for their workers, says state Democratic Senator Ken Toole, sponsor of a bill that would offset these welfare costs by charging Wal-Mart, Target, Costco and similar stores a 1 percent tax on more than $20 million in sales, 1.5 percent on more than $30 million and 2 percent on more than $40 million.

The tax, reports Reuters from Montana, would apply to stores more than 25 percent of whose employees work part time and whose full-time employees make less than $22,000 a year. Citing research that found state taxpayers spend about $421,000 a year for every Wal-Mart store with 200 employees, Senator Toole estimates that the tax would affect 160 stores — about half of Montana retail — and raise some $20 million annually.
Isis on September 29, 2005 at 12:06 am

Thanks NYCO and Parker for the information. I’m thrilled to hear this. The House of Cards is rapidly falling. . . .

Suffolk County, NY to Wal-Mart: Pay for worker health care

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