Is this true?

[the_boxer_]

Question: Can anyone corroborate this? I'm not sure if this is true.

In violation of Texas law, Wal-Mart has been taking out life
insurance policies on its employees without their knowledge
and naming the company as beneficiary. Another prominent
user of these "dead peasant" insurance policies is, you
guessed it, Enron. The difference between the Enron and
Wal-Mart in this matter is that Enron didn't break Texas Law
as did Wal-Mart. In Texas, it is illegal for any person or
company to take out a life insurance policy on any other
person without telling the person first. Wal-Mart chose to
ignore Texas law when it took some 350,000 dead
peasant policies on employees, including Texas
employees, without telling them. The arrogance of
Wal-Mart in purchasing these policies in defiance of Texas law
is almost beyond belief. Moreover, the proceeds of these
policies have reportedly been used to fund executive
retirement plans.

The ghoulishness of this practice speaks to the utter
disregard - indeed contempt - that Wal-Mart holds for its
"associates". Executives enriching themselves on the
death of their employees. How low can one sink?

I wonder how secure Mr.Coughlin and the rest of the
executives and directors of Wal-Mart would feel if
Wal-Mart employees started purchasing life insurance
on them without their knowledge. Do you think it might
give them cause for concern? There's a reason the Texas law
exists. And, there is need for a similar law at the federal level.

Conclusion: Wal-Mart is a company without a conscience. If
Wal-Mart was a person, the terms "psychopath" or
"sociopath" would apply. But Wal-Mart is a corporation, an
"artificial person" under the law. So, in Wal-Mart's case, there
seems to be a "collective psychopathy" on the part of its
directors and executives. It's time for the Texas Attorney
General take steps to control this monster.




http://www.walmartworkerstexas.com/death_and_money.htm

[junker]

1. yes.

[Langis]

2. I don't know if they did it without telling them

But they do take out life insurance on their employees.

[Richardo]

3. Allegedly they did it without telling them...

WTG, WalMart :eyes:

[Sir_Shrek]

4. Yes

They settled out of court when a lawsuit was brought though.

[reprehensor]

5. I think it's true.

I think the contract that the workers signed was so convoluted that they literally didn't know they were signing away life insurance...and it certainly wasn't explained to them.

That's what I heard.

[brainshrub]

6. Yes.

I think it's in the book "Nickled & Dimed" as well.

[silverlib]

7. Yes - and here's a link

to the article in the Austin American Statesman where the case was settled out of court for an undisclosed amount.

http://www.statesman.com/business/content/auto/epaper/editions/saturday/business_f3ff1b75d1b120a800fd.html

[Flightful]

8. Used to be a common practice

A lot of companies took out insurance to cover the cost of survivor benefits. In Wal-Mart's case it was a tax dodge- investment income is taxable but insurance benefits are not, so even though life insurance policies provide a lower return on investment the after-tax return is higher.

[DuctapeFatwa]

9. It is to protect the company's interests if a resource becomes unusable

Wal-mart incurs costs in processing workers, and although training as such is minimal, for a large company, those costs can add up.

It is merely an additional method of generating revenue.

[the_boxer_]

11. That's dangerous...the company could end up killing you....

...if the didn't meet quarterly expectations.

How creepy...

[DuctapeFatwa]

12. The company is in business to maximize profits

Once the traditional capitalist incentives are removed (work hard, make money for the boss, get more money for you), there is a natural transition to the feudalist incentive (work hard, make money for the boss, stay alive)

[skypilot]

13. "feudalist incentive"...

...hence, "peasants insurance".

[skypilot]

10. Unfortunately, it's true.

They actually referred to it as "janitor's insurance" and "peasant insurance". Classy.

[the_boxer_]

14. Related story...

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=105&topic_id=638068