Published: Пт, Января 12, 2018
Economy | By Melissa Porter

Walmart ups hourly wage to $11, adds benefits after tax overhaul

Walmart ups hourly wage to $11, adds benefits after tax overhaul

Walmart is positioning its latest wage increase as a response to tax reform passed late past year that could provide the retailer with a windfall to share, thanks to a significant reduction in the corporate tax rate.

Walmart announced on Thursday it would raise starting wages for hourly employees to $11 an hour beginning next month, and will give some of its hourly workers one-time bonuses that could be as high as $1,000.

The starting wage rate increase, which is in addition to wage hikes already slated for many US markets this coming fiscal year, applies to all USA hourly associates, including those who work in stores, Sam's Clubs, the ecommerce division, logistics and the company's home office.

"Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the USA", he said.

The changes take effect next month. Among other things, economists blame the lack of bargaining power for lower-skill employees, such as retail workers, and the tendency for companies to reward executives and shareholders, rather than workers, when they're flush with cash.

The telecom giant said on December 20, 2017 - the day Congress passed the tax bill - that it would give 200,000 USA employees a $1,000 holiday bonus.

Wal-Mart also announced additional benefits for full-time hourly associates, including 10 weeks of paid maternity leave and six weeks of paid parental leave, as well as adoption assistance of $5,000. An increase in Walmart's starting wage rate to $11 an hour on top of planned wage increases in select markets. One report that 258 of Fortune 500 corporations that were profitable-and therefore taxable-paid an average of 21.2 percent over the eight-year period. Workers with at least 20 years qualify for a $1,000 bonus. During the same quarter last year, the company earned $0.98 EPS. analysts forecast that Wal-Mart Stores, Inc. will post 4.43 earnings per share for the current fiscal year.

President Trump said that opposition against tax cuts would create a problem for the opposition in this year's mid-term elections.

"We've got some really good news to share today", CEO Doug McMillon said in a letter to employees. "The worry was that Wal-Mart, facing the same kind of wage pressures as Target amid 4.2% unemployment, would have to embark on a new round of pay increases".

Raising the starting wage would cost about $300 million and the bonuses will total about $400 million, Walmart said.

Walmart's expanded benefits will provide for 10 weeks paid maternity leave and six weeks for parental leave.

"Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the USA", he added.

The pay increase may have also been spurred by competition from other retailers, who have announced similar pay boosts of their own. It first did so in a well-publicized move in early 2015, when it raised its minimum wage to $9 an hour. Since this cut is permanent, the true benefits to Walmart will grow much larger over time.

"We will be able to invest even more in aircraft and facilities, and we will be able to do so with even greater confidence about the future", he said.

The bank said on December 20, 2017 that it would raise the company's minimum wage to $15 an hour, from $13.50.

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