I work for Walgreens not as an MGT but as a store manager. I have been recruiting MGT's for a vary long time. I strongly believe that all mgt's have a reason to be upset. When Mgt's are hired they are given their yearly salary based on 44 hours. This overtime is unfortunately the only thing that makes the salary competitive for a college grad even in todays job market. Most that i know could find an entry level job with a different company making the same amount of money without the weekends, nights, or holidays. I encourage all MGT's to find another job. Perhaps then they will wake up. For Walgreens management to think that they are offering a competitive salary is ridiculous. I am not convinced that we were at the point that we need ed to cut pay yet after all we still made more than 400 million last quarter. If we are cutting pay than I believe that it needs to be across the board. The mgt's have about the crappiest job in the company and are now compensated very poorly. As a store manager I would happily give up my bonus to keep my MGT's happy. They are the only reason for most of our success.
"Most that i know could find an entry level job with a different company making the same amount of money without the weekends, nights, or holidays."
What planet is your store on? There are NO JOBS available at this time and most employers are laying off not reducing the hours by 4 per week. Your store budget didn't even get cut by the 4 hours overtime, just the MGT was reduced. They wouldn't be able to do this if they didn't find that they are still competitive paying the assistant managers at the 40 hour rate. It should give them more incentive to get in the next ADSM class and eventually take YOUR job! As an investor I SUPPORT ALL OF THE CUTS AND REDUCTIONS!
Not sure what planet YOU are on, but chain-wide, Walgreens trimmed an average of forty hours per week out of the SS budget. Two weeks ago, in many regions, an additional eight to twelve hours were cut.
Part-time MGTs who were part of the Management Intern program had their hours charged to the District Office for the particular store they worked at.
No more. Now stores are having to either absorb their part-time interns hours or let the interns go.
Pharmacy budgets were chopped not quite a year ago when the Zyrtec Rx-to-OTC launch happened and it cut into the script count. Pharmacy complaints are now at a fifteen-year high, with no indications of receding. STARs events are climbing faster than lovesick angels.
Ironically, the company has had "record sales" for the past two quarters--or at least, that's what their PR spinners are releasing. "Record sales," but GP was down the last fiscal quarter by .2%.
Deerfield blamed it, naturally, on a "sluggish economy." But how do you have record sales and yet still have a negative GP?
Simple. When you give away the farm, as Walgreens loves to do, it's going to catch up with you. All the $5 register rewards, BOGO and BGLP in-house coupons, $25 script xfer coupons, etc etc. Add that to a runaway, out-of-control freeforall refund/return policy, and hell yes, you're going to have negative GP numbers.
And, what did Walgreens do with the "record sales?" Why, they went out and bought more stores and made more acquisitions. More overhead costs to absorb, more salaries to absorb, etc.
And the "as an investor, I'm all for cutting labor costs" line still flies with some of you???
Little secret here: Screw your labor (managers, exa, mgt, hps, sba, svc, etc) and you screw your customers. Screw your customers by bad service, out-of-stock shelves and ad items, and you screw your investors because your customers become ex-customers.
But their money will still spend at Walmart or Target or CVS or anywhere else.
I am a 14 year employee as well as a stock holder. I do NOT support this move. Most of assistant managers are hard working. This OT is NOT a bonus that they are entitled to, this is what their standard work week has been for decades.
Those investors that think this is a good cost cutting measure need to work in a store for a short while. There is tons of waste that should be cut instead of taking away from the people who have built and sustained this company.