Add Wal-Mart to the growing list of companies boosting employee compensation in the aftermath of the passage of Trump’s tax reform.
In a just released press release, Wal-Mart Stores announced it is boosting its starting hourly wage to $11, expanding maternity and parental leave benefits and providing a one-time cash bonus for eligible associates – those who have been with the company at least 20 years – of up to $1,000, capitalizing on the U.S. tax overhaul to stay competitive in a tightening labor market.
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The company said that the increase wil take effect in February next month and will cost approximately $300 million incremental to already planned wage hikes. The one-time bonus of up to $1,000 is based on seniority and will amount to an additional $400 million. The company is also expanding its maternity and parental leave policy and adding an adoption benefit.
Walmart CEO Doug McMillon said that “we are early in the stages of assessing the opportunities tax reform creates for us to invest in our customers and associates and to further strengthen our business, all of which should benefit our shareholders. However, some guiding themes are clear and consistent with how we’ve been investing — lower prices for customers, better wages and training for associates and investments in the future of our company, including in technology. Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.”
As Bloomberg adds, Wal-Mart, the nation’s largest private employer, has fought in recent years to improve its image in the U.S., as it weathered criticism over its treatment of employees. With the wage increase and bonus payment, the world’s biggest retailer seeks to even its pay gap with resurgent rival Target Corp., while simultaneously sending a high-profile thank you to the U.S. government for slashing the corporate tax rate.
The full release can be found here.
They could boost the hell out of profits if they’d stopped paying their workers money and paid them in free tattoos.
This plan was in motion well before the current tax bill.
“The move comes three years after Wal-Mart last announced it was raising wages, spending $1 billion in 2015 to lift starting hourly pay to $9 and then to $10 for most workers the following year.”
And it’s a business decision.
” With the wage increase and bonus payment, the company seeks to even its pay gap with resurgent rival Target Corp.”
https://www.bloomberg.com/news/articles/2018-01-11/wal-mart-raises-u-s-hourly-wage-to-11-in-wake-of-tax-overhaul
“The company said that the increase will take effect in February next month and will cost approximately $300 million incremental to already planned wage hikes.”
Horseshit. It won’t cost them anything. I shop for groceries at Walmart every week and I can see their prices increase on a week over week basis.
Example: I buy those small ready to eat packages of tuna fish. Last week $.93 each. Been that price for 8 months. This week $1.00 each.
So which stores can we shop at where we don’t/won’t see those price increases?
BTW, one increase in 8 months doesn’t actually qualify as “week over week” price increases, you need a different example.
The price changed from last week by about 7%. I have no idea what the price might be 8 months from now or next week.
JMO but 20 years at WalMart sounds like some form of indentured servitude to me. But if it works for ya, good on ya.
Nice catch, Dymas. “providing a one-time cash bonus for eligible associates – those who have been with the company at least 20 years – of up to $1,000.” That’s $50 a year. Walmart pulling out all the stops, showing their employees love. Scum.
Don’t be concerned, they and the other retail big boxers are being displaced by Amazon now.
And Amazon is known for their excellent treatment of their employees.
Well Star, at least they’re throwing Admin a bone if peeps around here do online purchases thru them on the link posted here, vs. the rainforest company that shall remain nameless.
We can still judge the land of the freaks’ preferred place of consumerism as a tightwad behemoth akin to Bezos’ skullthuggery, but I expect Donnie will smirk, and say “See?”, then take the credit.
That trade negotiation w China needs tweaking, after all.
And Dave, for the love of good health, I hope you’re not buying tuna from The Wall that originates in China. Careful how you dress. You might land on TBP’s weekly freaks of the week. No ass cracks fotos anymore. Please.
(cue: gag reflex)
The only thing “freakier” than the weekly “Walmart Freaks of the Week” are the Walmart employees. Paying more money to worthless employees is NO recipe for success….even if it gets the SJW crowd off your back. Anyone with talent, drive, initiative, or a good head on their shoulders at Walmart wouldn’t last a minute in the face of the rest of their fellow employees.
The scum better not rise the price of my high blood pressure medicine!!
Or the price of my damn Starkist Solid White Albacore tuna And pink Salmon .I don’t eat that much of it but my darling little bb loves it.When we go on the road I always buy 60 cans of both at Walmart. …I was sitting here thinking my cat ( little bb ) eats better then most people in Third world countries.Should I be feeling guilty ?
Walmart Abruptly Closing 260 Sam’s Club Stores, Firing Thousands On Same Day It Raised Minimum Wages
by Tyler Durden
Thu, 01/11/2018 – 14:40
Wal-Mart was quick to make a media splash with the news that it was raising the starting hourly wages to $11/hour, expanding employee benefits and offering worker bonuses of up to $1000 in response to the Trump tax cuts; it was far more covert, however, with the news that on the very same day it was also closing hundreds of Sam’s Club stores nationwide and laying off thousands of workers according to numerous media reports.
Jessica Buckner, an audit team lead at a Sam’s Club location in Anchorage, told local TV station KTVA that all Alaska stores are closing as part of a larger downsizing across the U.S. “From what I heard, there’s over 260 stores that have been closed down,” she said according to CBS News.
The wholesale clubs’ official closure date is Jan. 26, Buckner said.
The closures also affect stores in New Jersey, upstate New York, Georgia, Illinois, Indiana, Ohio, Louisiana, North Carolina, Tennessee and Texas. In some locations, per social media, people showed up to work only to be told that their location was closing, with nearly no advance notice.
The chain, which competes with Costco , has more than 650 locations employing more than 100,000 people, with an average of 175 employees per store, according to the company.
No formal announcement was posted Thursday morning by Sam’s Club, but the company acknowledged the closures on Twitter with a general statement.
The company drew criticism from people on Twitter who objected to the lack of notice about the closings.
And yes, we will repeat it because it bears repeating: the closures come on the same day that Walmart announced it was raising its minimum wage to $11 per hour.
Meanwhile, Gordon Haskett analyst Chuck Grom calculated that Wal-Mart’s wage investment is just 15% of the tax gain. According to Haskett, “Wal-Mart may see tax rate of ~23% in FY19 (year ended Jan. 2019) vs current 32%, which would provide $2b windfall”. As such, he adds, the “labor investment of ~$300m represents just 15% of total; assumes a similar amount will go toward investments in price.”
What will the company use the rest of the money on: why higher dividend payments and accelerated buybacks of course.
Oh, and free advertising: “with WMT being first retailer “out of the gate,” it should get some “free media.”
Businesses don’t close their profit making operations, just the ones that aren’t and are negatively impacting those that do because of it.
So it closes the stores that are losing money.
Perhaps there is a better business model to apply, what would you have done if it had been your place to address the issue?
Good for the Wal-Mart employees. I still will not shop there, because Wal-Mart sucks! Should be renamed to Hell- mart!
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