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Whole Foods to cut part-time worker medical benefits

Specialty grocer says change will impact less than 2% of employees

Russell Redman

September 13, 2019

2 Min Read
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Whole Foods Market

Whole Foods Market has confirmed that it plans to eliminate health care benefits for part-time workers constituting nearly 2% of its workforce.

Under the move, employees who work at least 20 hours but less than 30 hours per week won’t be able to enroll in company-provided medical benefits effective Jan. 1. A Whole Foods spokeswoman said in an email Friday that less than 2% of the Austin, Texas-based retailer’s employees currently buy into benefits offered via the company’s health plan.

“In order to better meet the needs of our business and create a more equitable and efficient scheduling model, we are moving to a single-tier, part-time structure,” Whole Foods said in a statement. “The small percentage of part-time team members in the second tier who previously opted into medical benefits through Whole Foods Market’s health care plan — less than 2% of our total workforce — will no longer be eligible to buy into medical coverage through the company.”

News of the planned benefits cut emerged yesterday in a report by BusinessInsider, which estimated that the move would impact about 1,900 of Whole Foods’ 95,000 employees.

Whole Foods noted that the change won’t eliminate any jobs and that all part-time staff remain eligible for the team member discount, 401k, paid time off (PTO), the team member assistance plan, home and auto insurance, company discounts and online learning.

Related:Grocery workers ratify new contract in Southern California

“We are providing team members with resources to find alternative health care coverage options, or to explore full-time, health care-eligible positions starting at 30 hours per week,” Whole Foods stated. “All Whole Foods Market team members continue to receive employment benefits, including a 20% in-store discount.”

On Friday, the United Food and Commercial Workers (UFCW) blasted the planned benefit cutback by Whole Foods, taking aim at Jeff Bezos, founder and CEO of Amazon, the grocery chain’s parent company.

“Amazon’s plan to cut health care for these part-time employees is one of Jeff Bezos’ most brazen attacks on the quality of jobs at Whole Foods and the communities they support,” UFCW International President Marc Perrone said in a statement. “Too many workers today are already working two to three jobs just to get the hours and benefits they need, and these cuts by Jeff Bezos just made it harder for them.”

The nation’s largest grocery union, UFCW noted that it has been a “vocal critic” of what it called aggressive moves by Amazon “to devalue and degrade grocery jobs at Whole Foods.” The union said that, in March, it condemned actions by Whole Foods to cut employee hours months after Amazon announced a wage increase, a move that ended up diluting an overall income gain for many Whole Foods workers. 

Related:Whole Foods store employees look to unionize

“Grocery jobs should be good jobs, and one job should be enough to provide for yourself and your family,” according to Perrone.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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