I have often posted that I'm on the fence about Walmart ~ I strongly detest its employee policies ~ the other side of the coin is that Walmart hires some people who would otherwise be unemployable, does a lot of community-based good where it has stores, and the Walton Foundation strongly supports education ~ if this announcement plays out correctly, I will be forced to adjust my thinking on Walmart ~ ~ Sooz

Walmart Raising the Wage for 500,000 Employees
The big box retailer's announcement is sure to impact the national debate around increasing the federal minimum wage.
By Kali Holloway / AlterNet / February 19, 2015

Walmart has a long and storied (and well-earned) reputation for shortchanging its employees. That may change slightly following the corporate behemoth’s announcement this morning that it will be raising the pay of about half a million of its employees.

The new rate increase will raise hourly pay for employees to $9 as of April. Walmart says it also plans a second increase that will ensure all associates will be making $10 by next February.

Not only does this potentially alter Walmart’s image as one of the most egregious examples of corporate greed – it may have a big impact on the ongoing national conversation around raising the minimum wage.

The announcement came as part of Walmart’s quarterly earnings announcement. In the release, CEO Doug McMillon stated:

“Current and future associates will benefit from this initiative, which ensures that Walmart hourly associates earn at least $1.75 above today's federal minimum wage, or $9.00 per hour, in April. The following year, by Feb. 1, 2016, current associates will earn at least $10.00 per hour.”

There are other pay raises afoot as well. In an letter to associates, McMillon wrote:

"We’re also strengthening our department manager roles and will raise the starting wage for some of these positions to at least $13 an hour this summer and at least $15 an hour early next year."

McMillon also noted that the company is modifying its “hiring, training, compensation and scheduling programs.” The change, according to the CEO, will allow employees “more control over their schedules.”

The estimated cost of the pay raises and other changes announced today hovers somewhere around $1 billion dollars for the fiscal year.

http://www.alternet.org/news-amp-politics/walmart-raising-wage-500000-employees

terrific news. hopefully that will drive down food stamp use by about 1%.

I wouldn't jump for joy just yet.
For every $1.00 increase they'll claw back $1.50 for their "favourite charities" - Walmart Health Care, Walmart Dental Care, Walmart Pension Fund, Walmart Auto Club, Walmart Life Insurance, etc.

I'm not sure about that, oskar ~ Walmart is doing this because its profits are tanking ~ employee turnover is very expensive, and it is buying into the proven "happy employees boost profits" meme ~ this also means its own employees will have more to spend in its stores ~ these 500,000 hourly workers are estimated to be 40% of its total work force, and they've promised raises for the salaried employees as well ~ this could also have a very positive affect on the federal minimum wage argument ~

Time will tell ~

Sooz

no, i think sooz has it right. WMT has been employer of last resort. with UE dropping below 6%, it is putting hiring pressure on WMT.

actually, this is going to be a common problem for restaurants, as well. they really need to raise wages.

Yep macro. You've put your finger on the reason why right-wing governments don't really want "full employment" at all.

And, what they really, really, really don't want is FULL employment.

When I was a kid "full employment" - as defined by "objective" economists - meant somewhere between 1 and 2%. Now its between 5 and 6%.

Draw your own conclusion about the "economics" profession.

Not much difference between economists and Gypsy fortune tellers.

I can't agree Oskar. Gypsy fortune tellers are pretty much harmless.

Only if you listen to them.

When they tell them what they want to hear they do.

Maybe WalMart has being paying attention to the Costco experience where employees are treated well. Costco's profits are soaring while WalMart's are sucking the hind teat.


http://www.forbes.com/sites/rickungar/2 ... u-pay-for/

I have yet to shop in a Walmart.