Monday, January 16, 2006

Wal Mart and healthcare costs

This article describes the Maryland legislature's misplaced efforts at sticking its nose into WalMart's business last week. The unfortunate reality is that the bill requiring all companies in the state with over 10,000 employees to expend at least 8% of total compensation on healthcare benefits misses the mark.

It is the total package of employment benefits that makes employees feel the satisfaction or sting of their benefits package. It is this figure which motivates employees to either accept the comp as reasonable for their services, or to move on to another endeavor that meets roughly the value of their opportunity cost. This is pure union legislation at its finest.