Wal-Mart Raises Hourly Wage to $11 in Wake of Tax Overhaul

by Susie Olson January 12, 2018, 0:45
Wal-Mart Raises Hourly Wage to $11 in Wake of Tax Overhaul

Walmart is using the windfall the GOP just gave Corporate America to score a public-relations coup, with a strategic move that would have been smart even without a tax cut.

Walmart on Thursday announced plans to give some employees a one-time bonus and boost its minimum hourly wage to $11-an indication that the lowest earners in the country are finally starting to see some benefit from the nearly decade-long economic recovery.

Walmart's starting pay is now $9 for all hourly employees, or $10 for those who completed a training program.

Doug McMillon, Walmart's president and CEO, wrote in a blog post that given the lowered business tax rate dictated by H.R. 1, also known as the Tax Cuts and Jobs Act, the company now has an opportunity to "accelerate" their "investment plan". Employees are also getting a one-time bonus of up to $1,000.

The starting wage increase takes effect February 17 and applies to employees at all U.S. Walmart stores, including Sam's Clubs, eCommerce, its logistics personnel and workers at its home office in Bentonville, Arkansas.

Chuck Grom analyst at Gordon Haskett Research Advisors said in a note Thursday that not only will the decisions improve morale, which he said will lead to lower turnover and eventually higher sales, but it's also an image boost for Walmart at a time when its image is "already undergoing a significant makeover".

For one, a key competitor, Target, in October raised its minimum wage to $11 per hour, with plans to step it up to $15 by 2020. Walmart has about 2.1 million employees, which works out to be an average bonus of about $190. Company veterans with 20 years will get $1000 dollar bonuses others receive $200 bucks. The one-time bonus will amount to $400 million in the current fiscal year and the company will take a one-time charge in the fourth-quarter of the current fiscal year to account for the charge.

Overwatch League-Twitch Deal Worth At Least $90M
If you're excited about the start of the inaugural season of the Overwatch League on January 10th, we have even more great news. The Overwatch League will run, at the Blizzard Arena in Los Angeles, until June, with play-offs and finals scheduled for July.

"The one-time bonus represents an additional payment to associates of approximately $400 million in the current fiscal year, which ends January 31, 2018", Walmart said in a news release.

The company said the moves that will affect more than a million hourly workers in the USA are tied to recently enacted tax legislation that will save it money.

Wage increases at the lower end of the scale are typically a sign that labor markets are tight, said Elise Gould, a senior economist at the Economic Policy Institute. The company also increased it in 2015.

The wage increase comes as a number of Walmart's competitors have upped minimum hourly wages.

It is unclear if Walmart's new offerings are entirely linked to the tax cut, as the company has a history of low wages and benefits, along with a past wage increase that sparked layoffs and employee restrictions. Full-time hourly workers in the United States will be eligible for 10 weeks of paid maternity leave.

"I would've been astounded if they hadn't raised wages", said Thomas Kochan, at professor at MIT's Sloan School of Management.

TOP News

Platelet, blood donors needed
Their shelf life is very short-only 5 days-while whole blood or red cell donations can last 42 days. Type B negative: The blood type that can be transfused to type B Rh-positive and negative patients.

Egyptian soccer star Mohamed Salah named African Player of the Year
Mohamed Salah is the second Egyptian player to win this award after Mahmoud El-Khatib, who won the title in 1983. Salah has scored 23 goals for his club Liverpool in competitions in 2017. "This is a dream come true for me".

Mom, boyfriend sought in burning, beating death of 4-year-old girl
Police said the woman claimed she owned weapons that had been confiscated, including one that had the serial number filed off it. In 2006, Fields pleaded guilty to carrying an unauthorized concealed weapon and served a year of probation. "We didn't know.

Justin Timberlake Is Coming To Montreal
The tour will stop in Chicago on March 27 at the United Center . "The outdoors is the inspiration for a lot of these songs". The first single from " Man of the Woods ", a track titled " Filthy ", has been met with mixed reviews.

More than 100 Sears, Kmart stores to close
In 2006, Sears Holdings operated more than 3,000 locations in the US and Canada, according to CNN . With its lack of merchandise, Sears failed to distinguish itself from other retailers, she said.

Alexa will soon be able to control ovens and microwaves
This means users will be able to utilize Alexa to do things like control volume and change inputs with different voice controls. Whilst Amazon has a variety of vendor partners, it's not certain how rapidly support will roll out.

India to rethink colonial-era law criminalising gay sex
Several supreme court judges noted that sexual orientation fell under the privacy umbrella. Supreme Court has decided against hearing an appeal.

British parliamentary committee recommends levy on take-away coffee cups
Some coffee shops give customers discounts for bringing their own refillable cups. The UK throws away 2.5 billion disposable coffee cups every year.

Google Assistant for DISH
Jumping to a completely different product category, Acer and Asus announced at CES that they are bringing Alexa to their laptops. But it doesn't behave like a traditional tablet: you don't interact with it by managing and installing apps.

Bannon Apologizes for Role in Book Critical of White House
The president also referred to Wolff's book as a "Fake Book" written by a "totally discredited author" in a separate tweet. Cotton said this tell-all book is similar to other claims the media made when describing other Republican presidents.