Walmart To Give 40% Of Workers Pay Rise To $9 Per Hour.
In a statement accompanying Walmart’s fourth quarter report, McMillon announced what he called a “bold new initiative” that’ll see 500,000 of its low-wage workers — about 40% of its 1.3 million-strong U.S. workforce – given a pay boost well above the federal minimum wage:
Approximately 500,000 full-time and part-time associates at Walmart U.S. stores and Sam’s Clubs will receive pay raises in the first half of the current fiscal year. 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.
Walmart will also invest in training, hiring, scheduling, and store management, to the tune of $1 billion. McMillon said in his statement that the retailer aims to give its employees “more control over their schedules.”
A year ago, Gap GPS +0.86% Inc. announced a salary hike to $10 an hour for workers across its 5 store chains. In June, Ikea followed suit with a pay boost to $10.76 an hour for its U.S. workers.
Walmart CEO Doug McMillon has been talking of a possible raise for the company’s workers for months now. On Thursday morning, as the Bentonville, Ark.-based retail giant released its earnings, he made it official.
In a statement accompanying Walmart’s fourth quarter report, McMillon announced what he called a “bold new initiative” that’ll see 500,000 of its low-wage workers — about 40% of its 1.3 million-strong U.S. workforce – given a pay boost well above the federal minimum wage:
Approximately 500,000 full-time and part-time associates at Walmart U.S. stores and Sam’s Clubs will receive pay raises in the first half of the current fiscal year. 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.
Walmart will also invest in training, hiring, scheduling, and store management, to the tune of $1 billion. McMillon said in his statement that the retailer aims to give its employees “more control over their schedules.”
The big-box chain has long been criticized for its scheduling at the store level, with workers seeking more hours — at least, those workers who have regularly protested for better pay and improved conditions over the past three years.While Thursday’s pay boost announcement is a long way off the $15 per hour its protesting employees demand, the new $9 pay makes Walmart more competitive in a retail landscape more sensitive than ever to the plight of low-wage workers.
A year ago, Gap GPS +0.86% Inc. announced a salary hike to $10 an hour for workers across its 5 store chains. In June, Ikea followed suit with a pay boost to $10.76 an hour for its U.S. workers.
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