Wal-Mart to hike pay of vast majority of US employees
21 Jan 2016
Walmart is hiking the pay of the vast majority of its US employees as part of its previously announced investment in its workforce. The move comes as it sought to hold onto workers in an increasingly competitive market.
Walmart Stores Inc yesterday said over 1.2 million US hourly workers would get wage increases on 20 February. The largest US private employer with a workforce 1.4 million strong further said it would provide free, basic short-term disability to full-time hourly workers. It would also start allowing workers to accrue paid time off as they earned it.
The changes are the biggest Walmart had made in its efforts to offer better wages and benefits to its workers. According to commentators, the changes came as the company faced pressure from labour-backed groups who had slammed the company over its treatment of its workers (See: Protesters picket against low wages at Walmart stores on Black Friday).
The company, announced last Friday, that it would base employee wages for 500,000 workers to $9 an hour last year (Wal-Mart to hike wages for half-million workers to $9 per hour by April), with plans to move it to $10 per hour, next month.
The company added new entry level workers hired after 1 January 2016 would start at $9 per hour, but move to at least $10 an hour after completing a six-month training programme. Last June, Wal-Mart said it would increase starting wages for over 100,000 US department managers.
Meanwhile, Walmart announced plans on 15 January to close 269 stores in the US and globally, however, no stores in New Jersey would close, including the two locally in Garfield and Saddle Brook.
A press release from Walmart in October 2015, said an active review was underway to ensure assets were aligned with strategy. The closings come after a review of Walmart's nearly 11,600 worldwide stores that considered a number of factors, including financial performance as well as strategic alignment with long-term plans.
The press release added no New Jersey Walmart locations would be impacted by closures.
"Actively managing our portfolio of assets is essential to maintaining a healthy business," said Doug McMillon, president and CEO, Walmart. "Closing stores is never an easy decision, but it is necessary to keep the company strong and positioned for the future. It's important to remember that we'll open more than 300 stores around the world next year. So we are committed to growing, but we are being disciplined about it."
