It would force Wal-Mart and other big employers in the state to spend 8% of
payroll or pay into a fund for the uninsured.
By Marc Lifsher and Abigail
Goldman Times Staff Writers
February 3, 2006
A California state
senator said Thursday that she would introduce legislation aimed at forcing
Wal-Mart Stores Inc. and other large employers to offer better healthcare
coverage to workers.
State Sen. Carole Migden (D-San Francisco) said her
proposal would require companies that employ at least 10,000 people in
California to spend at least 8% of their total payroll on health benefits or
make payments into a state fund for the uninsured. She said the proposal was
modeled on a new Maryland law.
Wal-Mart has more than 70,000 employees
in California. A 2004 study by the UC Berkeley Labor Center found that
inadequate wages and benefits force workers at Wal-Mart stores in California to
seek $$86 million in state aid for healthcare and other
expenses.
Wal-Mart could be required to pay more than $50 million toward
healthcare coverage for its workers under the proposal, Migden said. She said
she didn't know how many other companies could be affected by her proposed
legislation.
Migden said she expected her bill, which is still being
drafted, to be introduced in the state Senate next week.
"We're not
trying to attack Wal-Mart," Migden said. "We're trying to create a bill that
forces large employers who make large profits as part of the California dream to
be responsible about funding part of their employees' insurance costs."
A
Wal-Mart spokeswoman said she hadn't seen Migden's proposal, but she said
similar bills in other states had done little to address the problem of
uninsured citizens. For example, fewer than 0.5% of Maryland's uninsured are
Wal-Mart workers, she said.
"Our energies should be focused on developing
meaningful solutions to the problem and the people of California deserve more
than politically motivated bills masquerading as progress," said Mona Williams,
Wal-Mart's vice president of corporate communications.
Several other
states, including Washington, Connecticut and New Hampshire, have begun debates
on what are being called "fair share healthcare" bills.
Although
Migden's proposed bill could get a sympathetic hearing in the
Democratic-controlled state Legislature, it is expected to generate strong
opposition from business lobbyists.
If you want other stories on this topic, search
the Archives at latimes.com/archives.