Wal-Mart greed knows no bounds

On April 1, Wal-Mart dropped its claim against the Shanks due to public outcry and threats of boycott.

Capitalist greed knows no limits, as the Shanks family found out.

Debbie Shanks worked nights at the Wal-Mart in Cape Girardeau, Mo., so she could be at home during the day with her three children. She stocked shelves for low wages.

In 2000, Shanks’ life turned upside down. Her minivan was hit by a tractor-trailer in rural Missouri, leaving her comatose for months, and then permanently disabled with brain damage and memory loss. Shanks, who is wheelchair-bound, now lives in a nursing home and needs round-the-clock care; she’ll never be able to work again nor live at home.

In 2002, the Shanks won a lawsuit against G.E.M. Transportation, Inc., which owned the trucking company involved in the accident. Her settlement was $700,000 for damages. After deducting legal fees, $417,000 was put into a trust fund to pay for her future medical care.

Three years later, Wal-Mart struck. The corporation sued the Shanks for $470,000 to retrieve all of the medical costs their health plan had paid out, plus legal fees and interest to pay for their lawsuit against the Shanks. They alleged the Shanks violated the health plan’s regulations by not reimbursing it.

Wal-Mart’s lawyers pointed to a little-known contract clause in fine print. This “catch-22” provision said that Wal-Mart can “recover” all medical costs it paid out if an employee wins a liability lawsuit.

Although only $417,000 was left, Wal-Mart demanded the entire $470,000—and refused a compromise payment proposed by the Shanks’ attorney.

Not surprisingly, Wal-Mart won their case, and in 2007 the Shanks lost their appeal in a federal appellate court. They were ordered to repay the $277,000 that remained in the trust fund. The U.S. Supreme Court refused to hear the Shanks’ case, effectively siding with Wal-Mart and giving the green light to other corporations to follow suit—which they are doing.

As corporations foist more health care costs onto the workers, many insurance contracts include these “subrogation” clauses, authorizing medical plans to “recover” claims’ costs from damages settlements won by workers. To add insult to injury, employees must pay for the legal expenses of the corporation that sued them! Some insurers won’t pay medical claims until employees sign pledges to repay them from any injury settlements. (wsj.com, Nov. 20)

In 2006, the Supreme Court aided corporate health plans by unanimously ruling that they could go after employees’ liability settlements.

The health-insurers’ lobby, American Benefits Council and America’s Health Insurance Plans, says medical plans annually “recover” $1 billion from third-party liability settlements. (wsj.com, Nov. 20)

Sadly, the Shanks lost one son in Iraq in 2006. Debbie Shanks can’t remember this and grieves again each time she hears about it. Her husband, who is recovering from cancer, works two jobs. He divorced her so she could qualify for public assistance for medical and nursing home care.

But Wal-Mart still insists Debbie Shanks owes them the entire $470,000—an amount the corporation makes every 38 seconds.

Wal-Mart’s chief CEO, Lee Scott, earns that amount weekly. The Waltons, owners of Wal-Mart, are the U.S.’s richest family. The company made $11 billion in profits last year. Neither their family foundation, the corporation’s “charity,” nor their Associates in Critical Need Foundation will help the Shanks. (Wal-Martwatch.com)

Wal-Mart’s medical plans are notoriously inadequate and expensive for their workers. Less then half of their low-paid work force are covered. Deductibles, premiums and co-payments are exorbitant; hidden fees are everywhere. The company phases out full-time workers or shifts them to part time to elude medical coverage. (Wal-Martwatch.com)

This corporation spends woefully little for their employees’ health. In 2004, Wal-Mart spent $1.5 billion on medical insurance, approximately one-half of one percent of its $285 billion in sales that year. (Wakeupwalmart.com)

There is national outrage against Wal-Mart’s greed. Many people vow to never shop there again in solidarity with the Shanks. The Service Employees International Union and many individuals have sent donations to the Shanks.

What is needed is a strong national people’s campaign against corporate greed and for universal health care guaranteed to all working and poor people.