Walmart, a company notorious for understaffing its stores and limiting employee hours to avoid paying overtime and health benefits, has had an epiphany: These practices are costing the company billions.
Walmart has been unable to stock its shelves adequately over the past year, which has resulted in the company missing out on $3 billion, Bloomberg reports.
Company executives have taken notice and plan to "add labor hours as part of an effort to bolster 'in-store execution'" Bloomberg reports from the company's annual Year Beginning Meeting in March.
Even though the company is adding stores, it's not adding employees. Walmart employs 20,000 fewer people than it did in 2008 while opening 650 new stores over the past five years. The workers who are employed complain of low wages, no benefits and being overstretched to compensate for a lack of staffing.
Check out this video of an awesome union flashmob at a Walmart in Raleigh demanding the company respect workers:
Even with adding hours, which could help improve profit customer satisfaction, the company has a long way to go to address worker complaints.
More than half of Walmart's 1 million hourly store employees earn less than $25,000 a year for full-time work, Bloomberg Businessweek reports.
Walmart's policies for employees don't just hurt workers, they are also costing the taxpayer. Congressional Democrats released a study showing many of its workers must rely on food stamps and other government aid programs. Public assistance for Walmart employees is costing taxpayers as much as $900,0000 a year in Wisconsin, the study showed.