Walmart Increases Hourly Wage
February 27, 2018
In early January, Walmart Inc. announced it will raise its starting hourly wages to $11, expand parental leave benefits, and give cash bonuses to employees of up to $1,000.
The company reportedly cut 3,500 co-manager positions and added 1,700 lower-paid assistant store managers.
In a statement to Business Insider, Walmart said the restructuring is meant to meet customers changing needs.
“Retail is changing rapidly and we are transforming to meet the needs of our customers,” the company said. “We have a growing emphasis on serving customers seamlessly however they want to shop: in stores, online, on their mobile device — through pickup or delivery. To help compete and win in this environment, we must make changes across our company to enable further investments in our strategic business priorities and growth.”
Walmart Inc. has also announced that it would close 63 Sam’s Club stores in a move that would impact roughly 9,400 employees.
Walmart joined other companies who say the big corporate tax cut is motivating them to raise wages, pay bonuses and make more investments. The top corporate tax rate was slashed from 35 to 21 percent. It will most likely save Walmart billions of dollars a year.
Walmart Inc. has been able to give bonuses to their employees.
Here’s how the bonus payout breaks down:
- $200: Less than 2 years of Walmart employment
- $250: 2-4 years of Walmart employment
- $300: 5-9 years of Walmart employment
- $400: 10-14 years of Walmart employment
- $750: 15-19 years of Walmart employment
- $1,000: 20 years or more of Walmart employment
While the benefits are great for the employees who still have a job, they do not do much for the employees who live in cities whose minimum wage is above $11.