Walmart to Raise Minimum US Wage to $11 an Hour

Walmart giving employees $1000 bonuses, raising minimum wage

Today, Walmart announced plans to increase the starting wage rate for all hourly associates in the U.S.to $11, expand maternity and parental leave benefits and provide a one-time cash bonus for eligible associates of up to $1,000.

Since Wal-Mart's initial increase starting in 2015, many states have enacted minimum-wage laws, meaning that a "sizable group" of its 4,700 USA stores already pay $11 an hour, according to spokesman Kory Lundberg.

Walmart said that the one-time bonus will be given to all eligible full and part-time hourly USA employees. Walmart didn't explain exactly how the sliding scale will work, but said the total value of the bonuses will be $400 million.

The company is also creating a new benefit to assist employees with adoption expenses.

Walmart's CEO Doug McMillon said in a statement that the combined wage and benefit changes, which will benefit more than 1 million United States hourly associates, are a result of tax savings from this year's tax reform that reduced the country's corporate tax rate to 21%.

Wal-Mart's hike follows Target's October decision to increase its minimum hourly wage to $11, which it will further boost to $15 by the end of 2020.

The Republican plan cuts the corporate tax rate from 35 percent to 21 percent.

McMillon said Walmart is in the "early" stages of assessing opportunities from the GOP tax plan, adding "tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S". The bonus is based on length of service, with workers with at least 20 years qualifying for $1,000. The increase cut into profit and was criticized by some longer-tenured employees as unfair to them.

Previously, Walmart provided fully paid family leave to salaried workers, while hourly workers received half pay during family leave. Hourly workers will be paid between $11 and $24.70 an hour.

Walmart also said it would offer financial help to full-time hourly and salaried employees who are seeking to adopt children.

With this move, the world's largest private employer has scored big points with Republican politicians, who now have a talking point for the campaign trail, and maybe also from shoppers who see its wage increase as socially responsible.

An expanded parental and maternity leave policy, providing full-time hourly associates in the USA with 10 weeks of paid maternity leave and six weeks of paid parental leave. About a dozen banks have said they will raise their minimum wages.

Plus, Walmart knows from experience what raising wages can do to help boost business. It has done well and strengthened its hand in online retail as many other retailers have struggled.

Related:

Comments

Latest news

CDC reports widespread flu activity in 46 states
The flu has also taken a toll on kids, with 195 people under age 18 admitted to hospital as of December 30. The Health Department said this year's rate of infection is the third fastest in the last eight years.

What Went Wrong With the Launch of the Secretive Zuma Satellite?
So if there was a problem, who's at fault? If we or others find otherwise based on further review, we will report it immediately. Falcon Heavy is SpaceX's massive new rocket that will boast three times the thrust of the Falcon 9.

Mazda selects Alabama for $1.6 billion auto plant with 4000 jobs
The joint plant forms part of a plan unveiled by Toyota in January 2017 to invest $10 billion in the USA over the next five years. The state has offered some road and bridge improvements around the new plan, Alabama Commerce Secretary Greg Canfield said.

Astronaut anxious about transport home after space growth spurt
Lt Kanai, 41, is a Japanese doctor selected as an astronaut candidate by the Japan Aerospace Exploration Agency (JAXA) in 2009. And when astronauts return to earth, so too do they return to their usual height. 'I grew like some plant in just three weeks.

Other news