Walmart raises minimum wage for its employees
On Thurs., Jan. 11, 2018, Walmart Sales Inc. announced that it will raise its minimum hourly pay to $11. The retailer will also expand employee benefits and give one-time bonuses. However, the company has also closed 10% of its Sam’s Clubs nationwide.
The hourly wage hike will be effective beginning next month, February 2018. As a result of the raise, the average pay for a full-time hourly Walmart associate will be $13.85 to $14.50.
The bonuses that the retailer will be giving out to its employees will be based on how long a worker has been with the company. An employee of 20 years or more will receive the largest bonus, at $1000.
Along with the salary increase and bonuses, Walmart is also expanding employee benefits. The retailer will now help its salaried and full-time hourly employees pay adoption expenses, raking out $5000 per child, CNN Money reports. Their full-time hourly associates will also be eligible to receive 10 weeks and six weeks of paid maternity and parental leave, respectively.
According to Fox Business, CEO and President of Walmart Doug McMillon credits the recent federal tax cuts, saying that the company is just “in the early stages of assessing the opportunities tax reform creates for [them]."
Another part of the big changes that have occurred at Walmart Sales Inc. is the closure of 63 of their Sam’s Club warehouses. The nationwide closures are part of a new strategy that executives are implementing to increase the profitability of Sam’s, reports BBC. The business is now targeting families that bring in $75,000 - $125,000 per year. According to multiple sources, some of the Sam’s will be turned into fulfillment centers.