Walmart, Disney Get Tough on Unvaccinated Staff Amid Delta Surge
Walmart Requires Headquarters Staff to Get Vaccinated by Oct. 4
(Bloomberg) -- America’s corporate giants began ratcheting up the pressure on unvaccinated employees, aiming to turn the tide against a resurgent virus that threatens the economic recovery.
Walmart Inc., the largest private employer in the U.S., is requiring headquarters and regional staff to be vaccinated by Oct. 4, instituting a policy that may set a standard for corporate America as the highly contagious delta variant continues to spread. Walt Disney Co. issued a similar mandate of its own.
“The pandemic is not over, and the delta variant has led to an increase in infection rates across much of the U.S.,” Walmart Chief Executive Officer Doug McMillon said in a memo Friday. “We have made the decision to require all campus office associates and all market, regional and divisional associates who work in multiple facilities to be vaccinated by Oct. 4, unless they have an approved exception.”
The companies will be closely watched by other corporate leaders grappling with the myriad challenges of getting white-collar employees safely back into offices while also looking after their frontline employees in stores, factories and distribution centers, especially with the delta variant pushing cases higher again.
Walmart’s action covers all campus staff as well as market, regional and divisional employees who work in multiple facilities. A spokesman couldn’t immediately say how many of the retailer’s 1.5 million-person U.S. workforce will be affected. Walmart separately told its frontline store and warehouse associates Friday to don masks again, and doubled the cash incentive it’s providing for employees to get vaccinated to $150.
Disney, the world’s largest entertainment company, will require all salaried and nonunion hourly employees in the U.S. working in person at any of its sites to be fully vaccinated, along with all new hires. It’s giving affected staffers 60 days to comply and making certain limited exceptions.
The Burbank, California-based company has also begun talks with unions about a vaccine mandate for employees under collective bargaining agreements, according to an emailed statement. Disney finished fiscal 2020 with a staff of about 203,000 worldwide.
CVS Health Corp. also announced new steps, requiring all employees -- regardless of vaccination status -- to wear a mask as of Friday “out of an abundance of caution,” a spokeswoman said in a statement. Customers are encouraged to don a face covering in CVS stores though they won’t be required.
Earlier this week, Alphabet Inc.’s Google said it will require workers coming back to its offices be vaccinated, and Apple Inc. has delayed its return-to-office to October and began urging store workers to wear masks again.
Frontline Challenge
As the Walmart and Disney announcements show, extending vaccine mandates from office workers to frontline staff will be difficult. It’s especially complicated when unionized employees and collective bargaining agreements are involved, as in the case of Disney.
At Albertsons Cos., the vaccination rate of its grocery-store workers is running close to the national average, Chief Executive Officer Vivek Sankaran said this week. That’s about 60%.
“This will be tricky for employers to navigate as our polling shows employees are split on mandates,” said Melissa Jezior, CEO of workforce consultant Eagle Hill Consulting, citing an April survey that showed 48% of workers think employers should require vaccines.
Within minutes of Walmart’s announcements Friday, rival grocer Kroger Co. said it would encourage vaccinated staff and customers to wear masks in stores. Retail locations have become the inadvertent battlegrounds for the broader cultural and political brouhaha over mask-wearing, with some confrontations between staff and customers becoming violent over the past year.
Smaller Employers
It’s not just corporate titans making moves: The 230-person public-relations consultant BerlinRosen has implemented a vaccine requirement for any employee wanting to enter its three offices, according to Chief Operating Officer David Levine.
Walmart’s CEO said there’s a “small percentage” of employees who can’t get vaccinated due to medical or religious reasons, and the spokesman said they “must follow all social distancing standards, wear a mask while working, and receive weekly Covid-19 testing provided by Walmart.”
If Walmart employees claim a medical or religious exemption but don’t receive approval, they will be be suspended for a set time period in order to receive the vaccination. If employees still decline inoculation, they’ll be fired.
Employees at the company’s Bentonville, Arkansas, campus -- which is in the midst of a complete architectural overhaul that won’t be complete until 2025 -- have been gradually coming back to offices with the intention of returning to pre-pandemic staffing levels after Labor Day. Now, McMillon said he might need to adjust that timing.
Walmart’s new mandate will be applied to all new hires in the affected locations, the company said. Management is also limiting business travel to mission-critical trips, which could dent the resurgence of air travel if its policy is followed by other big companies.
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