Budget Buster Walgreens Pay Cuts

[tinkmom2]

Any other families out there facing the mandatory Walgreen's pay cuts? This is going to be devastating to our family. My husband has almost 30 years in with the company. I am glad I made the decision to go back to school this year!

 

[sherry7]

That's a shame, and I hope your family is able to financially recover from this setback. It's somewhat confusing though, because Walgreen's president/CEO recently made this statement regarding the latest quarterly report, "we're pleased with important aspects of our business including our record sales of $18.2 billion."

Full report here: http://investor.walgreens.com/releasedetail.cfm?ReleaseID=634697

This doesn't at all sound like a company in trouble, not when they're making record sales. So the question is, when did it become okay for American companies to treat their employees so shoddily?

 

[tinkmom2]

I think they got themselves over their heads by buying Rite-aid. They also lost one of their major pharmacy accounts. I am sure that has something to do with it. It reminds me of when I worked at Starbucks and they had to close over 600 stores because they expanded so fast. Not only do I feel bad for my DH whom is devastated, I worry about what will happen in the next few months.

http://www.topix.com/forum/com/wag/TRCK3T4O4GUP8JSAB/p3#lastPost

It's a shame too that my DH won't get any severance or package nor get paid for the large number of sick days he never took.

 

[DawnM]

Sorry to hear. My Dh and I have both had times in our careers where our pay was cut. It isn't fun.

 

[wishesuponastar]

I'm sorry to hear this

 

[Bob NC]

I think they got themselves over their heads by buying Rite-aid.

Walgreens does not own Rite-Aid.

 

[crisi]

Sorry to hear. My Dh and I have both had times in our careers where our pay was cut. It isn't fun.

We muddled through on a 10% paycut for me in 2009. It turned into a strange year, by the end of the year we'd managed to save more than ever. Because of the paycut, I took a number of steps in frugality that I should have taken before but weren't important - cancelling cable for instance and using Netflix, wrapping the water heater, eating at home more and watching what was being bought, no impulse shopping - and almost none we noticed in our day to day lives.

It kept the company from going under, reduced layoffs (which were still deep). Directors took bigger cuts and VPs even bigger, plus the layoffs from their ranks were also deep. And when the company bounced back, we went back to our previous salary, plus they gave us half of that 10% as a bonus.

 

[tinkmom2]

Walgreens does not own Rite-Aid.

http://www.valuewalk.com/2012/03/walgreens-might-merge-riteaid/

The merger has been all the talk at Walgreens for the last 6 months. Everyone that works there know that this was their intention.

Anywho thanks everyone for all your kind thoughts! I was praying and crying about it this morning. Whatever Walgreens reasoning is it's not good for the employees.

 

[tinkmom2]

We muddled through on a 10% paycut for me in 2009. It turned into a strange year, by the end of the year we'd managed to save more than ever. Because of the paycut, I took a number of steps in frugality that I should have taken before but weren't important - cancelling cable for instance and using Netflix, wrapping the water heater, eating at home more and watching what was being bought, no impulse shopping - and almost none we noticed in our day to day lives.

It kept the company from going under, reduced layoffs (which were still deep). Directors took bigger cuts and VPs even bigger, plus the layoffs from their ranks were also deep. And when the company bounced back, we went back to our previous salary, plus they gave us half of that 10% as a bonus.

Walgreens had their employees take a pay cut in 2009 and took away their Christmas bonuses. They still opened more stores and even expanded into Hawaii.

Thanks for your thoughts! I am all ready the queen of frugal because of the recession but every little bit helps!

 

[Bob NC]

I think they got themselves over their heads by buying Rite-aid.

The merger has been all the talk at Walgreens for the last 6 months. Everyone that works there know that this was their intention.

LOL, all the major drug store chains do is talk about merging.

They didn't buy Rite-Aid. They don't own Rite-Aid. They did buy SOME Rite-Aid stores a few years ago.

If anyone at Walgreen's is using a possible merger with Rite-Aid as an excuse for cutting employee benefits....well, somebody is getting played.

 

[vicki_c]

I would think it would be driven more by their loss of Xpress Scripts as a customer (and we had to switch all our Rxs to mail order and Target as a result - and I really liked Walgreen's pharmacy).

I'm sorry OP that it's happening to your family, though.

 

[crisi]

I would think it would be driven more by their loss of Xpress Scripts as a customer (and we had to switch all our Rxs to mail order and Target as a result - and I really liked Walgreen's pharmacy).

I'm sorry OP that it's happening to your family, though.

That really hurt Walgreens, and they are fighting for their life. As a retailer a ton of their foot traffic is generated by prescriptions. OP, I hope your husband sees this as a wake up call and starts putting his resume out.

I left my "we almost went bankrupt, but treated our employees as well as we could" company. Good, ethical (or as ethical as any company) corporation, but that doesn't mean I have to stick around taking pay cuts as they go under.

 

[LMN]

I think the loss of the Express Scripts account was probably pretty major to their bottom line. My family's prescriptions are thru Express Scripts and we have had to start using mail order instead of using Walgreens. As a result, I don't pick up items here and there from Walgreens anymore because I am no longer in their store. So, its not just the prescription income they're not getting anymore, its other income they're not generating too. OP: Good luck to you and your family; I know these things are never easy!

 

[katman2540]

First to OP sorry to hear abut the paycut. Those stink big time but at least its not a layoff. In regards to another poster I agree Rite Aid has nothing to do with this. That particular rumor has been running around for a couple of years as vendors love to pass around rumors and others let them continue on. Rite Aid is improving everyday and has no reason to contemplate a merger.

 

[Princesca]

My company went public last year and in the most recent quarter, returned a larger dividend than expected to shareholders. By all accounts, the company is doing very well and the industry is doing well, the latter commonly said to be recession proof.

Yet I am a contract employee, as is half my department. No benefits. They have been laying people off by attrition. My area, which had about ten people when I started last summer, now has six, and there don't seem to be any plans to replace those we've lost. Of course, those of us remaining are expected to pick up the slack. I am now doing the job of one of those who left, who made twice what I do or more, plus my own, at the same hourly rate I had when I started. People who've worked there for decades say how badly things have changed, for the worse... that they've eliminated the pension, that the benefits are sub-par where they used to be very good, that only the very top tier of staff qualify for bonuses.

I have always been very much in favor of free markets, but if companies don't change their tune, I do believe that they are going to find themselves in rapidly rising waters. There is a huge untapped pool of employees for unionization... there is zero reason why office staff couldn't unionize. There are already clerical unions. And I think it could happen on a grander scale if this keeps up. And if it does, honestly, companies will deserve what they get. Just because you CAN treat employees like crap doesn't mean you should.

 

[cm8]

I think the loss of the Express Scripts account was probably pretty major to their bottom line. My family's prescriptions are thru Express Scripts and we have had to start using mail order instead of using Walgreens. As a result, I don't pick up items here and there from Walgreens anymore because I am no longer in their store. So, its not just the prescription income they're not getting anymore, its other income they're not generating too. OP: Good luck to you and your family; I know these things are never easy!

We have express scripts too (Tricare) so we had to transfer out as well OP, I hope your husband can now use up some of his sick time ASAP!

 

[kathie859]

Another family here that had to transfer prescriptions to CVS from Walgreen's.
I infinitely preferred Walgreen's and, like another poster mentioned, bought lots of other things when picking up a prescription. The reduction in foot traffic has GOT to hurt Walgreen's.

 

[POOHsie]

I would think it would be driven more by their loss of Xpress Scripts as a customer (and we had to switch all our Rxs to mail order and Target as a result - and I really liked Walgreen's pharmacy).

I'm sorry OP that it's happening to your family, though.

I have Tricare, too, and have used Tricare/Xpress Scripts mail order for at least the last 5 years. For something temporary like a prescription skin cream, I get that at the local pharmacy, but everything else I get 90-day mail order.

Three people have posted here that they have Tricare. Since Tricare/Xpress Scripts 90-day mail order prescriptions cost less than getting a 30-day prescription from a local pharmacy, why would a person on Tricare not choose the 90-day mail order? My cost is $54 for 6 Brand-Name meds for 90 days by mail order. At the local pharmacy, the cost would be $72 for 30 days only. Multiply that by 3 (months), and the local pharmacy would have cost me $216 for the same 90 days. Savings to me each 90 days: $162; yearly savings: $648.

 

[Judique]

I have Tricare, too, and have used Xpress Scripts mail order for at least the last 5 years. For something temporary like a prescription skin cream, I get that at the local pharmacy, but everything else I get 90-day mail order.

Three people have posted here that they have Tricare. Since Xpress Scripts 90-day mail order prescriptions cost the same as getting a 30-day prescription from a local pharmacy, why would a person not choose the 90-day mail order? My cost is $52 for meds for 90 days by mail order. At the local pharmacy, the same $52 would cover 30 days only. Multiply that by 3 (months), and the local pharmacy would have cost me $156 for the same 90 days.

That is what it is costing you now. Maybe. The way the 90 day scripts are working around here is a 90 day supply at the cost of a 60 day supply. And you have no choice in where you spend your money. The real cost will come later when everyone is on board with the mail order thing and your community stores are closed and your neighborhood pharmacist is gone. Then your mail order cost will go up because of no competition and because they can now freely gouge you. Good luck with that.

 

[tinkmom2]

I hope your husband can now use up some of his sick time ASAP!

Walgreens only lets you take a few days of sick leave before they throw you on disability. I don't think his boss will let him. Thanks for the thoughts!