Wal-Mart announced Tuesday it is increasing premiums for its most popular health insurance plan and cutting benefits for part-time employees working fewer than 30 hours per week. While the move may make sense financially, Vanguard founder Jack Bogle said the decision could backfire for the retailer.
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“I think it’s very peculiar,” Bogle said in an interview with FBN’s Maria Bartiromo. “Once you start losing the loyalty of your workforce -- the commitment of your workforce -- you’re putting together a setback that’s going to last a long time.”
Bogle said the decision is one he would have never considered when he was at the helm at Vanguard, because employees are the core of any business.
“You have to have two-way loyalty in a company … if you want the staff to be loyal to you, you better be loyal to them. It’s a two-way street,” he added.
For more on the Wal-Mart decision, watch the full interview above.