Wal Mart increasing mimimum wage and benefits; say tax reform is a reason

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.

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."

www.zerohedge.com...

Partisan politics aside, I think this is great news.

Wal mart is the countries largest employer, and seeing them raise wages and benefits is a good thing.

a reply to: Grambler

"Including technology" sounds like "robotic cashier" as it echos through my tinfoil hat

a reply to: Grambler

It's been interesting how news like this is either ignored or spun in a way that is bad on the American people.

originally posted by: bigfatfurrytexan
a reply to: Grambler

"Including technology" sounds like "robotic cashier" as it echos through my tinfoil hat

Could be right.

I my area there are already self check out "robots".

Regardless, this seems to be good news.

Now I will say that I still think that there will be an economic downturn, due to things trump didnt start but is continuing, such as massive deficit spending, fiat currency and the federal reserve, etc.

But in the short term, it seems as if the tax cuts werent the end of the world selling the country to the riuch that we were told.

In fact, its mostly wealthy people complaining they will lose tax write offs.

a reply to: Grambler

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,

Have to tell my wife to keep a look out for that. She's a 22 year veteran of Wally World.

a reply to: Grambler

Right, kind of like the Walmart ad years ago about bringing back manufacturing jobs to America.

Its not that I don't think lowering taxes and shrinking govt isn't a good thing for the economy but these Corporate behemoths have the tax lawyers and accountants on staff that know how to hide and deduct out of paying taxes already n.

Walmart is capitalizing on the PR and taking a page out of trumps book to get free positive PR.

Until we go to a flat taxed based system without deductions and 76K+ pages to describe it nor the requirement of needing to hire specialist to properly file ones taxes , the middle class will continue to get screwed. Heck under Obama not even the head of the IRS was able to file their taxes properly.

This tax plan will benefit the business owners and big corporations the most just like always , while throwing a little bone to the majority of employed middle class Americans that have been taking the burden of taxes in the country for far to long.

While this might be better than anything under Obama or Bush , it certainly isn't a major step but rather a tiny tiny step that will likely be rolled back in the future.

Say it aint so? The poor working man to benefit from the tax cuts? surely the evil rich people have a trick up their sleeves.

Waiting for the thread to be derailed by dems spinning this as a bad thing because they lose control of the working people by no longer enslaving them.

originally posted by: eriktheawful
a reply to: Grambler

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,

Have to tell my wife to keep a look out for that. She's a 22 year veteran of Wally World.

Great. I hope she gets the bonus.

If I may make a suggestion, tell her to spend her bonus on booze.

This is good news. Retailers have been paying minimum wage for a long time.

a reply to: MOMof3

That's because it doesn't require much to be a cashier or stock hand. Years ago it was a position for high schoolers and college level kids to have an income to get by while in school. As American exceptionalism died so did drive to do something with one's life and people decided to make minimum wage a career choice.

Wal-Mart Stores announced it is boosting its starting hourly wage to $11,

"Starting" wage earners. Whats that, 2fitty a week take home? Still not a 'living wage'.

Maybe Food stamps will increase too. Welcome to Wal Mart.

a reply to: Saiker

Actually, being a sales associate at Walmart is not something that you can just walk in from the street and do. There is quite a lot you have to learn how to do.

Sales associates aren't just someone with a box cutter than opens up a box and puts cans on a shelf. They do all sorts of stuff from unloading freight, getting the freight to the floor. Handling returns. Zoning areas. Changing out modulars (you didn't think everything stays the same in the store now did you?), and a ton of other stuff.

Then they have to deal with the customers.....not exactly an easy thing to do when you have someone coming at you, pissed off and angry at something, or throwing a fit because Walmart won't take a return of an item that was bought at Target.

Wally world uses several computer systems for setting prices, keeping inventory and a large amount of other data. Floor associates use some pretty cool looking tech in their hands for doing this.

After 22 years at Walmart, my wife has done just about everything there: cashier, service desk, floor associate for electronics, softwares, housewares.
She help run the deli and was department manager for the bakery for a while.

Most nights she comes home exhausted, but not because of the store is having her do, but having to deal with customers that are basically assholes.

Most young people that the store hires? Yah...most of them duck out as much as they can, sit in the break room, call in sick, and then wonder why they aren't getting paid more, or why they got fired.

Their work ethics suck. Most of the people who are older do much better. Especially people who have been looking for a job for a long time.

a reply to: eriktheawful

I still maintain that being a cashier at a place like Wal mart would be one of the hardest jobs on someone.

Not because it is physically exhausting, or even over mentally challenging.

But because you have to deal with people, sometimes in their rudest most vitriolic moments.

To deal with that day in and day out, and still keep a smile on your face is very impressive.

I will not dump on anyone willing to work and trying their best, no matter what the job is.

I think this pay raise will be a very good thing, and hopefully their wages continue to increase.

a reply to: eriktheawful

Wasnt a jab at your wife my friend. If American Exceptionalism was still a thing those kids would not allow their elders to work as hard and she would be doing the managerial task.Being an immigrant with a family of migrants we all agree Americans have become the biggest load of entitled A-holes in the world. Thats why everyone wants to come to America because they know the good jobs are here because Americans lack drive to get the good jobs.

I love just how a couple years ago that the arguments were that Walmart employees did not deserve a raise. Same with fast food workers and the like. It would throw the whole wage scale into chaos the arguments were. If Walmart employees got a raise then the cost of everything would go up. If fast food workers got a raise then a Big Mac would go up to prices unheard of.

Where have these arguments gone?

originally posted by: Terminal1
I love just how a couple years ago that the arguments were that Walmart employees did not deserve a raise. Same with fast food workers and the like. It would throw the whole wage scale into chaos the arguments were. If Walmart employees got a raise then the cost of everything would go up. If fast food workers got a raise then a Big Mac would go up to prices unheard of.

Where have these arguments gone?

Have to applaud that.

You raise a good point.

originally posted by: Terminal1
I love just how a couple years ago that the arguments were that Walmart employees did not deserve a raise. Same with fast food workers and the like. It would throw the whole wage scale into chaos the arguments were. If Walmart employees got a raise then the cost of everything would go up. If fast food workers got a raise then a Big Mac would go up to prices unheard of.

Where have these arguments gone?

I believe those arguments were against the government forcing these companies to raise their wages.

Wal mart said in the statement that the tax cuts would allow them to increase wages while keeping costs low, and help them be more competitive with other businesses.

a reply to: Terminal1

still the argument if entree level people make more money than those that have worked longer deserve more.

Take for example

A widget sells for 100 dollars profit

10 employees make 10 $ an hour.

after raise

10 employees make 11 $ an hour
Therefore widget has to make 110 dollars profit for same productivity.

With the tax break that widget brings inmore profit without having to raise prices.

a reply to: Grambler

That doesn't null and void the argument though. It doesn't matter how the wages have gone up. It would make Doctors envious of the lowly Walmart worker.

originally posted by: Saiker
a reply to: Terminal1

still the argument if entree level people make more money than those that have worked longer deserve more.

Take for example

A widget sells for 100 dollars profit

10 employees make 10 $ an hour.

after raise

10 employees make 11 $ an hour
Therefore widget has to make 110 dollars profit for same productivity.

Well there is one more component.

A widget sells for 100 dollars profit

10 employees make 10 $ an hour.

$20 dollars of that profit goes to taxes

after raise

10 employees make 11 $ an hour

However only $10 profit now goes to taxes

Therefore widget can still be sold at the same price to make the same profit.

That is what the tax cut does.