Walmart has promised more than 1.2 million of its employees that they will receive a pay rise this year with the minimum hourly rate to increase to $10 an hour, compared to the federal minimum wage of $7.25. However, new entry-level Walmart employees hired in 2016 will still receive $9 an hour, which will increase to $10 once the workers complete an internal retail skills program.
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All associates hired before January 1st, 2016 will earn at least $10 per hour. The average part-time hourly wage employee – defined as anyone working for the company at less than 34 hours a week – will earn an average of $10.58 an hour.
As a result, the average full-time hourly wage at one of Walmart’s more than 5,000 USA stores will be $13.38, up from $13. The retailer is also rolling out new short-term disability and simplified paid time off programs. Also, the one-day wait to use sick time will be eliminated, as promised. The increase will be applicable to its employees, who have been working in Wal-Mart and Sam’s Club stores since December 31, with the number of such workers reaching almost 1.2 million. The basic plan will pay 50 percent of a worker’s average weekly wage, up to $200, for up to 26 weeks.
The change includes a previously-announced increase to the retailer’s minimum wage, but also incorporates a plan to move forward in the calendar the annual raises that many workers would typically have received on the anniversary of their first day of work with the company. While this is above the national hourly average of $9.26 for cashiers and low level retail staff, it is still below the $14.95 average hourly retail workers in a non-supervisory role earn, according to U.S. government data. In an effort to compete with the biggest online retailer Amazon.com (AMZN – Analyst Report) and to improve customer service, Wal-Mart is aggressively investing in its e-commerce business.
By raising its minimum wage, Wal-Mart appeared to get ahead of the curve. “When we do so, there is no limit to what our associates can accomplish”, Judith McKenna, chief operating officer for Walmart U.S., said. “We constantly evaluate our hourly wage rates and adjust based on changing conditions in each market”, a Target spokesman said.
On Wednesday, the company’s shares fell 2.8% to $60.84, amid a broad market rout.
“We are proud to be a part of the Pineville community”, store manager Patty Campbell said in a statement this week.
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Soon after the news were delivered, a citizen of Redwater quickly got to work, starting a petition that has obtained more than 1,950 signatures in a short amount of time.
