Kroger is cutting medical coverage for the spouses of employees in the Indianapolis area. The move, which will affect 11,200 workers, will go into effect with the New Year.
The company, which has blamed the move on rising healthcare costs, has said it will provide a one-time payment of $1,000 to affected workers next February. By making the move, Kroger has said it will be able to better fund pay increases, health benefits for part-timers working at least 20 hours a week and employee pensions.
The United Food and Commercial Workers union made the deal with Kroger knowing that spouses of employees will be covered through health exchanges created under the Affordable Care Act.
According to a Cincinnati Enquirer report, only four percent of employers denied medical coverage to spouses last year. The number is expected to hit 12 percent in 2014.
Will Kroger's elimination of spousal healthcare coverage help or hurt Kroger in its employee recruitment and retention efforts?