By Selina Stoller, Summit Consumer Receivables Acquisitions, LLC
Walmart announced an increase in its minimum wage and a series of bonuses in light of the GOP tax bill, but the bulk of its corporate tax cut won’t be going to its employees.
Walmart CEO, Doug McMillon, said in a statement that a wage increase to $11 an hour would begin in February and employees this year will be getting one-time bonuses of up to $1,000. Those who have worked for the company for 20 years or more are eligible for the top-tier bonus, while others will be handed smaller payouts based on seniority.
The value of bonuses will be $400 million, but McMillion did not go into detail on how the fund would be given out to the rest of the workers.
The announcement came the same day Walmart closed 63 Sam’s Club stores across the country, Business Insider reported.
“After a thorough review of our existing portfolio, we’ve decided to close a series of clubs and better align our locations with our strategy,” Sam’s Club tweeted. “Closing clubs is never easy, and we’re committed to working with impacted members and associates.”
Walmart also credited the Republican tax reform for its latest wage hike, though the company announced its intention to raise pay nearly three years ago, according to Bloomberg.
Walmart in 2015 spent $1 billion to lift their pay to $9 an hour, and then boosted it by another dollar the following year — but only for those employees who complete a 90-day training course.
The pay increase was most likely brought on by competition from other retailers, who have announced similar pay boosts of their own.
- 26 Feb, 2018
- Summit Consumer Receivables Acquisitions, LLC