Corporate Greed Run Amok

[nacktman]

If you have never heard or or believed in Corporate Greed then here you go ...

Debbie Shank breaks down in tears every time she's told that her 18-year-old son, Jeremy, was killed in Iraq. Even though the 52-year-old mother of three attended her son's funeral -- she continues to ask how he's doing. When her family reminds her that he's dead -- she weeps as if hearing the news for the first time.
Shank suffered severe brain damage after a traffic accident nearly eight years ago that robbed her of much of her short-term memory and left her in a wheelchair and living in a nursing home.
It was the beginning of a series of battles -- both personal and legal -- that loomed for Shank and her family. One of their biggest was with Wal-Mart's health plan. Eight years ago, Shank was stocking shelves for the retail giant and signed up for Wal-Mart's health and benefits plan.
Two years after the accident, Shank and her husband, Jim, were awarded about $1 million in a lawsuit against the trucking company involved in the crash. After legal fees were paid, $417,000 was placed in a trust to pay for Debbie Shank's long-term care.
Wal-Mart had paid out about $470,000 for Shank's medical expenses, but in 2005, Wal-Mart's health plan sued the Shanks for the same amount.
The Shanks didn't notice in the fine print of Wal-Mart's health plan policy that the company has the right to recoup medical expenses if an employee collects damages in a lawsuit.
The family's attorney, Maurice Graham, said he informed Wal-Mart about the settlement and believed the Shanks would be allowed to keep the money. Watch this couple's story
"We assumed after three years, they [Wal-Mart] had made a decision to let Debbie Shank use this money for what it was intended to," Graham said. The Shanks lost their suit to Wal-Mart. Last summer, the couple appealed the ruling -- but also lost it. One week later, their son was killed in Iraq. "They are quite within their rights. But I just wonder if they need it that bad," Jim Shank said.
In 2007, the retail giant reported net sales in the third quarter of $90 billion.
Legal or not, CNN asked Wal-Mart why the company pursued the money.
Wal-Mart spokesman John Simley, who called Debbie Shank's case "unbelievably sad," replied in a statement: "Wal-Mart's plan is bound by very specific rules. ... We wish it could be more flexible in Mrs. Shank's case since her circumstances are clearly extraordinary, but this is done out of fairness to all associates who contribute to, and benefit from, the plan."
Jim Shank said he believes Wal-Mart should make an exception.
"My idea of a win-win is -- you keep the paperwork that says you won and let us keep the money so I can take care of my wife," he said.
The family's situation is so dire that last year Jim Shank divorced Debbie, so she could receive more money from Medicaid.
Jim Shank, 54, is recovering from prostate cancer, works two jobs and struggles to pay the bills. He's afraid he won't be able to send their youngest son to college and pay for his and Debbie's care.
"Who needs the money more? A disabled lady in a wheelchair with no future, whatsoever, or does Wal-Mart need $90 billion, plus $200,000?" he asked.
The family's attorney agrees.
"The recovery that Debbie Shank made was recovery for future lost earnings, for her pain and suffering," Graham said.
"She'll never be able to work again. Never have a relationship with her husband or children again. The damage she recovered was for much more than just medical expenses."
Graham said he believes Wal-Mart should be entitled to only about $100,000. Right now, about $277,000 remains in the trust -- far short of the $470,000 Wal-Mart wants back.
Refusing to give up the fight, the Shanks appealed to the U.S. Supreme Court. But just last week, the high court said it would not hear the case.
Graham said the Shanks have exhausted all their resources and there's nothing more they can do but go on with their lives.
Jim Shank said he's disappointed with the Supreme Court's decision not to hear the case -- not for the sake of his family -- but for those who might face similar circumstances.
For now, he said the family will figure out a way to get by and "do the best we can for Debbie." "Luckily, she's oblivious to everything," he said. "We don't tell her what's going on because it will just upset her."

(From CNN)

*****
The shear gall is appalling!:mad:

[chuckincville]

Nactman, you've struck a nerve here!

We don't shop at Wal-Mart! - we've long been aware of it's ongoing practice of "shafting " their employees. We have other options!

The problem, of course is larger than just Wal Mart. Corporate greed has been with us for a long time and will always be. It is indemic to our capitalist system. Businesses will abuse their employees! They'll use you up and then spit you out. That's why men & women bled and died in the fight to form unions. And for years the unions were a real force in protecting workers rights.

The republicans, beginning with Regan vs Air Traffic controllers, have nearly destroyed the unions. Now it's every man for himself. The republican party is and has been the party of big business. Corporate welfare, subsidies to billion dollar oil companies, right to work (for less) laws, these are the republican platform! The republicans are responsible for the exodus of thousands good paying jobs exported overseas.

We need a government that holds big business accountable to the country and people who have provided the opportunity for their very existence. We're fast becoming a nation of rich and poor - the middle class is fast disapearing.

I have such a hard time understanding why the American voters can't see what is in their own interest and let wedge issues blind them to economic reality and the consequances of unbridled corporate greed!

Come this fall we'll have an opportunity to let our voices be heard - enough already!!!

[BinCo]

While I certainly see the problem with the results of this policy, I can also see why a company would put that clause in the policy.

Would the family be as upset if they had won $10,000,000 and had to give back $470,000? I doubt it. The company puts that clause in the policy to help recoup the costs incurred. Unfortunately they have the right to do that. What really sucks is that they could have just settled and tried to have the case sealed. That way they could have possibly not let anyone know. The family did the right thing by telling the insurance provider. I looked at our insurance policy from Kiaser Permanente and it has the same clause. It allows them to be repaid if we get a settlement in a lawsuit for the same claim, this is what part of the lawsuit is intended for. It's not just a lump of tax free money.

On the other side the family is in a very sad situtation and I can understand how that really sucks and they hate Wal-Mart. We never shop at Wal-Mart and will not because they treat their employees and vendors like just another commodity. I can't imagine the pain they are feeling.:(

[Boreas]

That is a tragic story on so many levels. Besides the issue with WalMart, what about the fabulous US medical system. It seems to be failing this family somehow.

I have seen a very small version of this with our local Walmart. One of my friends worked there and had a fall at work. This caused a whiplash-type injury to her neck. WalMart did its best to prevent her from getting the Worker's Comp payments to which she was entitled.

WalMart and other such corporations are greedy, soul-sucking corporations. Sadly, WalMart seems to have started the whole trend of low pay, low benefits etc in the name of obscene profits. It is an example of why everone needs to learn about neoliberalism and fight it.

A very good DVD is "WalMart: The High Cost of Low Prices". If you do still shop there, it may make you reconsider.

[naturush]

If I were the Shanks, I'd keep living my life. Like the saying goes "You can't get blood from a turnip." Use up all the settlement money for its intented purpose-Shanks. When it's all gone bend over show big wally and the insurance company your butts. And tell them to pucker!!!

[Boreas]

If I were the Shanks, I'd keep living my life. Like the saying goes "You can't get blood from a turnip." Use up all the settlement money for its intented purpose-Shanks. When it's all gone bend over show big wally and the insurance company your butts. And tell them to pucker!!!


:laugh: Wonderful response!

[Qikdraw]

I'm not a fan of Walmart at all. My wife & I refuse to shop there, but my mother-in-law does. When we tell her why she shouldn't she just gets mad and says 'You can't tell me where to shop!'.

There has been legislation tried that says companies over a certain amount of emplyees have to be unionised, but so far I think its fallen through every time. While I have a 50/50 feeling about unions, I do think Walmart should be unionised.

Qikdraw

[MoonShadow]

Typical disgusting attitude by a mega-corporation. Business is business, don't take it personally. How many of you have heard that enough to make you gag? Sure, business is business but just what and who makes up that business? You bet, people. People like the Shanks, people like you and me.

I detest WalMart, never shop there and don't plan to due to many of their "employee policies and procedures" and day-to-day dealing with vendors and contractors. The list of horrid stories is long. This is another example of how they are as a coproration and how corporate American at large (not all) are becoming.

Hope the Shanks use up that money and move onward.

Sad, indeed!

[usmc1]

A little off topic, but, to the point about Wal-Mart. They are fiendishly smart. They are on a 30-day pay system with their vendors. If you want to sell through Wal-Mart, you do it their way---Follow closely:

1. 30-days after an item sells, Wal-Mart pays for it. Not a day before.

2. When the item sells, a computer signals up the supply line to make one-more of that item and prepare to ship it.

3. Say the item you bought cost $400 and you paid by check, debit, or credit card, the instant the sale was completed at the terminal, your account is hit for the $400, and for the next 30-days, Wal-Mart has interest-free use of that money.

4. My fourth grade multiplication tables does not enable me to figure out all the purchases in all the Wal-Marts and Sam's Clubs. But, I'm betting it's a boucoups of jingwah! All that money, for thirty days for free--talk about a float! Kicks the hell out of the mafia's piddling little endeavors!

5. And they Super Size it by screwing their workers, and motivating them with phoney cheer sessions.

Part of it is just damned smart business, but.....

[BinCo]

usmc1, where did you get that info?

1. 30-days after an item sells, Wal-Mart pays for it. Not a day before.

The only person I know that sold to Wal-Mart used to get paid net 30 from when 100% of the order arrived at Wal-Mart. They will not issue money down with the purchase order. They would pick it up from his company because they would sort to the various distibution facilities. So Wal-Mart technically became owner at his dock. They screwed him and took his product to China, of course.

2. When the item sells, a computer signals up the supply line to make one-more of that item and prepare to ship it.

Not true for much of the products. They have a system that tracks sales and accounts for losses and automatically creates new purchase orders, but not one for one. They might do that for very big ticket items, but I doubt it.

They do screw the vendor if they have to put product on sale to get rid of it.


3. Say the item you bought cost $400 and you paid by check, debit, or credit card, the instant the sale was completed at the terminal, your account is hit for the $400, and for the next 30-days, Wal-Mart has interest-free use of that money.

So does Sears and any other store that also handles their own credit transactions. When I had a merchant account it was 3 days to get my money. Of course if the customer contested the sale, I had to produce proof of signed purchase within 30 days. The customer had 90 days to contest the sale. Over 3000 transactions and one loss, from a Chrysler employee that was not authorized to buy woodworking stuff on the company credit card. Like it's my problem. Chrysler refused to pay no matter the signature and Novus upheld them. I lost $55, but did not have to pay any interest or penalties on the stolen item from that fine Chrysler employee that somehow got a company credit card but was not authotized to use it:eek:

As far as I know all credit/debit transactions are immediate.


Kicks the hell out of the mafia's piddling little endeavors!

No sir, PayDay loan companies do that. That's why Colorado is trying to bring them down from 300% interest to 45%.:sneaky:

[nacktman]

If I were the Shanks, I'd keep living my life. Like the saying goes "You can't get blood from a turnip." Use up all the settlement money for its intented purpose-Shanks. When it's all gone bend over show big wally and the insurance company your butts. And tell them to pucker!!!

Damn, I wish I said that!:applause:

[usmc1]

Tom Friedman "The World is Flat", I may have missed the total context plucking it from my memory of a very complex, in-depth and fact-filled and full of detail book, I read awhile back.

But, my recollection, which I oversimplified to make the point, is that with their Asian and other offshore suppliers, an item is sold, and it is immediately noted at the manufacturing and distribution computers to trigger either a shipment or manufacture of the item. Of course they don't do it one at a time, but those onesies add up quickly to manufacturing orders and shipments.

Lower warehouse costs and etc.

Local vendors just get clobbered by the bastards. ie.. vendor meeting:

Wal Mart> here's what we're going to pay you this quarter.

Vendor> That cuts our margin to less than 5%, we can't survive.

Wal Mart> Oh, sorry to hear that. Goodbye!

[BinCo]

usmc1, You also have to understand that Wal-Mart has a team of professional industrial engineers that audit your manufacturing to help streamline and lower costs. It is actually a great system and really helps to make your production line leaner and meaner. They have made some of the largest strides in manufacturing efficencies ever.

:grouphug:

Then they work with you to estimate what they saved you.....and reduce your prices for you. :yes:

So, Mr. USMC1, our audit saved you an estimated 23% on the cost of manufacturing the little nude statues of yourself that we dip into chocolate and sell at our locations to dirty little girls. Congratulations..... Your invoice will be reduced accordingly. :sneaky:

[Naturist Mark]

This is not a Walmart story, it is an insurance story. In this particular case Walmart self insures some of its employees under a defined benefit plan.

What happened here is the health insurer (Walmart) exercised a right of subrogation to recover its expenditures for the medical care of the beneficiary (Mrs. Shank) from the at fault party (the trucking company) - the twist being that the funds they claim are the ones the settlement gave to Mrs. Shanks.

I am in a very similar position to Mrs. Shanks. Fortunately for me my injuries from last summer's traffic mishap were not as severe, but they were, and are, substantial and permanent.

I was 'fully' insured when I was struck by a pickup truck last September. The driver of the truck was also insured. No problems, right?

My medical bills far exceed the limits of the at fault driver's policy, but not the global limits of my health insurance. Still good. I should get some compensation for the 5 months of lost wages, the exhausting of my savings, my lost property, the $10k - $30k in medical expenses not covered by my health insurance, and a little something to slightly compensate for my permanent physical disabilities. Still good, right?

Wrong.

My health insurance company has notified my attorney that they intend to claim the entire proceeds of the at fault driver's insurance to compensate them for the covered medical expenses they have paid. Leaving me nothing, except debt.

Ironically I might have been better off if I were at fault in the accident.

We are still hopeful that we can negotiate a more equitable settlement, but the continued irony here is that my own insurer is now my opponent, and the decision of the Supreme Court to allow the 8th Circuit ruling to stand leaves me at a disadvantage.

..............................................

Almost every health insurance policy includes a subrogation clause, although in many states it has been the opinion that they are not enforceable against the victim's compensation. No more, thanks to the new breed of corporate friendly Bush judges. The absolute right of subrogation has been federalized and approved by the Supreme court due to their refusing to hear the case.

Tell me again why single payer national health is such a bad idea?

-Mark

[Boreas]

Mark that is shameful in the world's and most powerful richest country.

I hope you win the battle.

[MoonShadow]

Truly, Mark, this is not good news to hear on your behalf. Keep fighting and negotiating and hopefully, you will gain some compensation.

Just thinking of insurance torques my noodle in this so-called rich country called the US of A. It's rich alright, if you have mega-bucks.

The best of luck to you, Mark!

[usmc1]

Mark that is shameful in the world's and most powerful richest country.

I hope you win the battle.

Perhaps that is the point.

The United States is not the world's most powerful and richest country. According to Jaynes, which is an unbiased and incredibly reliable source, the United States, in terms of "stability" and "prosperity" is 24th in the world. Canada is 23rd.

But, on the bright side we are above Samoa, the Czech Republic, and Falkland.

We're paying a dreadful price for something....guess what it is.

Long before his accident Mark was citing, in post after post, the disparities between the United States and the rest of the civilized world in regards to healthcare---now, regretably he is being shafter by the very issue he's been trying draw to our attention. When one sees the phrase "cruel irony" Mark is a living example.

This is what policy decisions and politics is all about. This is what is behind the liberal's calls for singe-payer healthcare for all. And, this is the effect of our current private, for-profit system.

Mark, I know you had a tough rehab just to get to the point you are now. I sincerely regret you're having to contend with this crap. It is my expectation, that come Janaury '09, we will begin the journey to move our country along its way to where it needs to be.

[Naturist Mark]

Good news for the Shank family, due to the glare of unfavorable publicity WalMart has decided to forego collecting the funds it won in court. The Shanks have 277k left in trust for Mrs. Shank's continued care.

[Boreas]

Good news for the Shank family, due to the glare of unfavorable publicity WalMart has decided to forego collecting the funds it won in court. The Shanks have 277k left in trust for Mrs. Shank's continued care.

That is awesome news. I was thinking about this after the discussion. This was pretty poor since Walmart has changed its PR to suggest it is much more community minded. This action will make that statement MARGINALLY more believable.

May you have similar luck Mark. (as the Shanks that is, without the trouble)

[usmc1]

That is awesome news. I was thinking about this after the discussion. This was pretty poor since Walmart has changed its PR to suggest it is much more community minded. This action will make that statement MARGINALLY more believable.

May you have similar luck Mark. (as the Shanks that is, without the trouble)

At the risk of sounding like Johnny One-note: Witness the power of public opinion and grassroots pressure once the light is shined on an issue.

Believe you me, Wal-Mart would have preferred this have been kept "private". And had it been kept private this change in course would not have happened.

[Boreas]

Oh I agree usmc. We also need to continue to shine the light on these tyes of practices.

[nacktman]

Shine a light and the roaches scatter.

The sense of what is proper and descent prevailed here and should be a clarion's warning to other 'roaches' that we have had enough.

Mark, I hope your recovery continues and that you receive what is due to you just as the Shanks have.

Would that neither you nor Mrs., Shanks have needed to receive your due via these means.