The World's Largest Private Employer to Raise Starting Wage to $11

Walmart to Raise Starting Wage to $11

The world's largest private employer is boosting its minimum wage.

By Megan Trimble, Associate Editor, Social Media |Jan. 11, 2018, at 11:06 a.m.

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Walmart to Raise Starting Wage to $11


The world's largest private employer, Walmart, is expected to soon boost its starting wage to $11 in the wake of the GOP's recent passage of a sweeping federal tax overhaul.

The major retailer announced Thursday that it will increase the starting salary for all hourly U.S. employees, distribute a one-time cash bonus based on time with the company and expand maternity and parental leave benefits. The company said the changes will
effect roughly 1 million hourly workers, and that the "lower business tax rate" was the impetus for the change. The new tax code slashes the corporate tax rate from 35 percent to 21 percent.

View image on Twitterhttps://pbs.twimg.com/media/DTRFyYrV...jpg&name=small

https://pbs.twimg.com/profile_images...1Jw_normal.jpgWalmart

✔@Walmart


Excited to share some news today! We’re raising our starting wage for all hourly associates in the U.S., expanding benefits & offering a one-time bonus! https://abs.twimg.com/emoji/v2/72x72/1f49b.png Learn more from CEO Doug McMillon: http://bit.ly/2DilSzT
6:33 AM - Jan 11, 2018

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"Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.," CEO Doug McMillon said in a prepared statement.

President Donald Trump signed the Republicans' massive $1.5 trillion tax cut package last month, marking one of the largest legislative victory so far in his presidency. Analysts say the tax package is one of the largest since tax cuts enacted under former President Ronald Reagan in the 1980s.


Walmart workers currently start at a $9 wage. The change, which benefits all hourly U.S. workers within its stores, Sam's Clubs, eCommerce, logistics and home office, will take effect in February, the company said.

Walmart said the one-time bonus for eligible full-time and part-time hourly U.S. employees will range from $200 to $1,000. The payouts will total about $400 million and the company will take the one-time charge in the fourth quarter of this year.

Walmart's expanded benefits for full-time hourly U.S. workers will include 10 weeks of paid maternity leave and 6 weeks of paid parental leave. The expanded parental leave will also include parents who adopt, and offer them $5,000 to help cover the costs.


McMillon said the company is in the early stages of "assessing the opportunities tax reform creates" and Walmart will continue to determine "what additional investments are needed" as it moves forward.

https://www.usnews.com/news/national...leave-benefits

Minimum wage hikes: 18 states, 20 cities to lift pay floors Jan. 1

Minimum wage - California Department of Industrial Relations - State ...

Effective January 1, 2017 the minimum wage for all industries will be $10.50 per hour for employers with 26 more or more employees and shall remain at $10 per hour for employers with 25 or fewer employees.

“There is a new ‘minimum wage’ for federal bureaucrats – at 78 departments and independent agencies, the average employee made $100,000 or more,” OpenTheBooks said in a statement.

30,000 federal employees earn more than any governor

San Diego's Minimum Wage Increase Compared To California's

Date	San Diego	California
07/2016	$10.50	I
1/2017	$11.50	$10.50
1/2018	I	$11.00
1/2019	$11.82*	$12.00
1/2020	$12.15*	$13.00
1/2021	$12.49*	$14.00
1/2022	$12.84*	$15.00

* If the Consumer Price Index grows in each year at 2.8%, the average rate of growth from 1982 to 2016. Source: Center on Policy Initiatives.

http://www.kpbs.org/news/2016/jul/01/san-diego-scrambling-plan-minimum-wage-increase/

Thank you Walmart! I am a good and regular customer and appreciate very much your using the tax cuts to raise wages for your wonderful Walmart employees. They deserve every dollar and more when you have it and feel compelled. They make your stores, they really do.

Walmart Shocked Employees By Closing Dozens of Sam's Club Stores. Here's What We Know

By BRAD TUTTLE 12:08 PM EST


On Thursday—the same day that Walmart heralded its newly increased minimum wage—the company dealt a surprising blow to to the popular Costco-like warehouse club it owns.

Employees and shoppers at dozens of Walmart-owned Sam’s Clubs around the country were shocked to see that the warehouse stores were closed—and will be closed permanently in the near future.

Walmart made no mention of the Sam’s Club closures in its Thursday press release touting its wage increases and other new benefits. Employees appear to have been given no advance warning, and confusion reigned for most of the day. Reports of the warehouse club closures surfaced piecemeal, with five closing in Illinois and at least three store closures in Houston. At one point, word spread that upwards of 260 Sam’s Clubs would be shuttered, including all locations in Alaska.

We’ve reached out to Walmart representatives for comment and more specifics, but messages have not been returned. Here’s what we know.
63 Sam’s Clubs Stores Are Reportedly Closing

Most reports now say that the total number of Sam’s Club closures nationwide is 63. Business Insider created a master list of stores set to be closed—with information gathered from Sam’s Club employees, not Sam’s Club corporate representatives—and it includes four locations in Arizona, three in Florida, four in New York, and four in Texas.

Over 10,000 Workers Could Be Affected

Some of these locations will be reconfigured into e-commerce distribution centers, but altogether over 10,000 Sam’s Club workers could be impacted by the closures.
In an internal email to Sam’s Club employees, CEO John Furner said:

“After a thorough review, it became clear we had built clubs in some locations that impacted other clubs, and where population had not grown as anticipated…. We will work to place as many associates as possible in new roles at nearby locations, and we’ll provide them with support, resources, and severance pay to those eligible.”

There was also at least one Sam’s Club response to a request for comment on Twitter:

11 Jan
https://pbs.twimg.com/profile_images...liq_normal.jpgDiaTaylor, HRLeader@diataylor68

@SamsClub why are you closing stores permanently today without consumer warning? Please don’t say “store sales.” I’m certain the location in my city was highly profitable.

https://pbs.twimg.com/profile_images...3b_normal.jpegSam's Club
✔@SamsClub


Hi,
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. Closing clubs is never easy and we’re committed to working with impacted members and associates through this transition.
11:54 AM - Jan 11, 2018

You Can Cancel or Refund Your Sam’s Club Membership

Sam’s Club membership costs $45 per year. Anyone who wants to cancel and request a refund because of a store closure or any other reason must call Sam’s Club customer service (888-746-7726), Business Insider reported. The refund can be issued in the form of a check or a Walmart gift card.

On the Same Day, Walmart Raised Wages and Extended New Benefits

On Thursday, Walmart announced it was increasing the minimum wage of all workers to $11 an hour, and giving employees bonuses up to $1,000. It was big news because Walmart is the country’s largest private employer, and because the company said worker raises came directly as a result of the corporate tax cut passed by the GOP and the Trump administration.

Prominent Republicans like Treasury Secretary Steve Mnuchin and Speaker of the House Paul Ryan quickly applauded Walmart, while also patting themselves on the back for passing the new tax law. Ryan said on Twitter that the tax law “is helping improve people’s lives.”

https://pbs.twimg.com/profile_images...j1F_normal.jpgPaul Ryan
✔@SpeakerRyan


Great news! Thanks to the Tax Cuts And Jobs Act, Walmart—America’s largest employer—is raising wages, providing bonuses, and improving benefits for its workers. This law is helping improve people’s lives. http://bit.ly/2APJk4H
10:23 AM - Jan 11, 2018 · Washington, DC


https://pbs.twimg.com/card_img/95144...g&name=600x314

Almost right away after Walmart’s announcement, however, critics pointed out that the tax law may not be the real—or only—reason for the worker raises.

The Tax Cut Is Hardly the Only Reason for Worker Raises

As my colleague Ian Salisbury pointed out yesterday, Walmart had planned to increase employee wages in many parts of the country before the tax bill passed. Unemployment has been low for years, and big box store rival Target raised its own minimum wage to $11 a few months ago. So in many ways Walmart has been forced to increase pay simply to be able to attract—and keep—workers given the economic reality lately.

The Wage Hikes Are Tiny Compared to Walmart’s Tax Savings

Walmart said on Thursday that its increase in worker wages would cost the company an extra $300 million next year, and that the announced worker bonuses will run roughly $400 million.

That sounds pretty significant. Yet a Bloomberg story noted that the world’s largest retailer rings up roughly $300 million in sales every five hours. “The company is on track for about $12 billion in net income this year, so it will take about nine days of profit to recoup the extra spending,” the report stated.

And how much richer will Walmart be in light of the new tax law the company is crediting as the big reason for raises and bonuses for workers? Matt Gardner, a senior fellow at the Institute on Taxation and Economic Policy, told the New York Times that based on Walmart’s earnings over the past five years, the corporate tax cut would save the company an estimated $2.2 billion annually.

“The figure could be higher or lower depending on tax breaks the company might be losing, or new advantages in the treatment of capital investments and other provisions,” the Times reported.

http://time.com/money/5100671/sams-c...-minimum-wage/

Quote:

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Almost right away after Walmart’s announcement, however, critics pointed out that the tax law may not be the real—or only—reason for the worker raises.

The Tax Cut Is Hardly the Only Reason for Worker Raises

As my colleague Ian Salisbury pointed out yesterday, Walmart had planned to increase employee wages in many parts of the country before the tax bill passed. Unemployment has been low for years, and big box store rival Target raised its own minimum wage to $11 a few months ago. So in many ways Walmart has been forced to increase pay simply to be able to attract—and keep—workers given the economic reality lately.

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Looks like the tax reform bill could actually have little to do with the pay raises.

LOL!! Yeah, you should always rely on Time magazine's opinion of something over the statements of the company paying the higher wages. Were you against the tax cuts like MSM??!!

Wow, did you get on the wrong side of that line or ... what??!!

Whew!

Quote:

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Originally Posted by Judy

LOL!! Yeah, you should always rely on Time magazine's opinion of something over the statements of the company paying the higher wages. Were you against the tax cuts like MSM??!!

Wow, did you get on the wrong side of that line or ... what??!!

Whew!

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If you've got a worthwhile argument or disagree with something in the article than provide your rebuttal information. However, if you just don't like the message, please don't attack the messenger.

San Diego's Minimum Wage Increase Compared To California's

Date	San Diego	California
07/2016	$10.50	I
1/2017	$11.50	$10.50
1/2018	I	$11.00
1/2019	$11.82*	$12.00
1/2020	$12.15*	$13.00
1/2021	$12.49*	$14.00
1/2022	$12.84*	$15.00

* If the Consumer Price Index grows in each year at 2.8%, the average rate of growth from 1982 to 2016. Source: Center on Policy Initiatives.

http://www.kpbs.org/news/2016/jul/01...wage-increase/

RELATED

Sam's Club closing 63 stores, cut 10,000 jobs

Walmart stated they were raising their wages and doing some other things as well including bonuses and expanding maternity and parental leave benefits because of the tax cuts with more to come. They had already raised their raise to $10 after training last year to compete with Target. It wasn't that I liked or disliked the message, the Time magazine message was wrong.

MSM colluded to try to defeat the tax cuts. They had a parade of lies about the impact of the tax cuts on the poor and middle income earners claiming they would have tax increases. Not only do they realize tax cuts, they realize other benefits as well.

There's a Big Reason Walmart Just Raised Its Minimum Wage to $11. It Has Nothing to Do With Tax Cuts

By IAN SALISBURYJanuary 11, 2018

On Thursday, Walmart raised its minimum wage to $11 an hour from $9, citing the trillion-dollar tax cut signed late last year by President Donald Trump.

The company also expanded its maternity and parental benefits and said some employees would be eligible for a cash bonus of up to $1,000. “Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.,” the company said.

The move is certainly good publicity. (While President Trump hasn’t yet tweeted to crow about the move, past experience suggests it may only be a matter of time.) But taxes are hardly the whole story.

In fact, with unemployment at just over 4% and workers’ real wages finally rising after years of sluggishness, the giant retailer might not have had much choice, regardless of what transpired in Washington last month.

Indeed, Walmart had already raised its minimum wage to $9 an hour in 2015, and at the start of 2017 halved the length of the training period workers needed to complete in orders to get a raise to $10. And a Walmart spokesman acknowledged via email that the company had already planned an upcoming wage increase in “select geographies” — although he said there was no across-the-board hike planned prior to passage of the tax law.

One company putting direct pressure on Walmart is its superstore rival, Target, which raised its own minimum wage to $11 a little over three months ago. And if that didn’t put enough heat on Walmart, Target also said it plans to pay workers a minimum of $15 by 2020.

At the time, Target’s move prompted some observers to predict Walmart would react immediately. “The news that Wall Street analysts, bond investors and Wal-Mart’s competitors all feared on Tuesday didn’t happen,” wrote Investors Business Daily in mid-October. “The worry was that Wal-Mart, facing the same kind of wage pressures as Target amid 4.2% unemployment, would have to embark on a new round of pay increases.”

In other words, while Walmart employees should certainly be happy to take home a little more, whatever the reason, shoppers should take the verbiage from the company’s executives with a big grain of salt.

http://time.com/money/5098953/walmar...wage-tax-cuts/

Tax reform bonuses to lift retail stocks, Barclays says, upgrades Target, Lowe's

Barclays upgrades Lowe's to overweight and Target to equal weight based on fatter wallets expected from the Republican tax cuts.

"A potentially overlooked story that's developing could be the amount of stimulus about to be released upon consumers by all U.S. corporate actions regarding employee pay/bonuses from the tax reform," analyst Matthew McClintock says.

Thomas Franck
Published 8:44 AM ET Fri, 5 Jan 2018 Updated 4:08 PM ET Fri, 5 Jan 2018 CNBC.com

The retail industry is about to get a big boost from Republican tax cuts, setting the sector up "exceptionally well" in the new year, according to one of Wall Street's biggest banks.

Barclays raised its rating on Target and Lowe's stocks on Friday, citing numerous benefits for the retail sector as a result of the tax overhaul.

"A potentially overlooked story that's developing could be the amount of stimulus about to be released upon consumers by all U.S. corporate actions regarding employee pay/bonuses from the tax reform," analyst Matthew McClintock wrote in a note to clients.

The analyst compared the current GOP measure to one passed under President George W. Bush in 2001, when sales growth at retailers surged in the months following tax relief thanks to an influx of cash into the economy.

"We believe that these 'windfalls,' whether through unexpected pay raises or one-time bonuses will flow largely through discretionary spend, particularly big ticket items," he said.

Shares of Target and Lowe's closed up 1.1 percent and 2.1 percent respectively following the call.

McClintock upgraded Lowe's to overweight and Target to equal weight largely based on his belief that more companies will follow others in offering employees higher pay or bonuses in light adjustments to a low corporate tax rate. A key component of the Republican plan cuts the corporate tax rate to 21 percent in an effort to make the U.S. more competitive.

"We expect retailers are now increasingly likely to follow Target's lead in going to a $15 minimum wage by 2020, especially given the tight labor market combined with accelerating sales," McClintock wrote.

He noted that the two retailers deserved rating upgrades not only because of the expected stimulus, but also because they appear able to navigate around competitors in e-commerce.

"The Amazon competitive threat becomes slightly less worrisome as many traditional retailers will likely have more room to invest in price," he said.

McClintock's $120 price target on Lowe's represents 29 percent upside from Thursday's close, while his $70 target on Target is 6 percent higher.

https://www.cnbc.com/2018/01/05/tax-...get-lowes.html

Why Walmart's bait and switch matters

By Jonathan Tasini
Updated 9:39 AM ET, Sat January 13, 2018

(CNN)If the man sitting in the Oval Office honestly admitted he made his fortune from exploiting thousands of people, he'd likely be enraged when people pointed out he's small-time compared to the Walton family. Year after year, the Walmart heirs prove no one comes close to their brand of exploitation, which they wrap in public relations fluff and deception.

http://cdn.cnn.com/cnnnext/dam/asset...m-plus-169.jpg
Jonathan Tasini

This week was no exception. With much fanfare, Walmart announced it was raising its minimum starting wage to $11 an hour (from $10) and giving eligible workers a $1,000 bonus, tying its munificence to the recent Republican tax cut. The business media covered the story.

Yet that wasn't the only news Walmart made public.

On the same day, Walmart, with far less fanfare, also announced it would close dozens of Sam's Club wholesale stores, laying off thousands.

But there's a lot more to the story.

A number of companies, principally in the retail sector, are raising wages not because of their corporate generosity but simply because they need to compete for workers. With the unemployment rate relatively low (even as lots of people are still out of the labor force compared to pre-recession), basic economics dictates that workers will usually have more choices to look for higher pay.

http://cdn.cnn.com/cnnnext/dam/asset...m-plus-169.jpg

Joseph Ellis: GOP is trying to erase over 100 years of history


Target, for example, announced it was raising its starting wage to $11 per hour in September 2017, and says it will raise it to $15 an hour by end of 2020.

That was a move taken long before the tax cut was even in final draft form. So, Walmart's contention that the wage hike move is an outcome of the tax cut doesn't wash.

There is also a heavy dose of self-congratulation here, as if by doling out money, Walmart should earn a medal. But, let's look closely at the reality. If you worked 40 hours a week, 52 weeks a year at $11 per hour, with not a shred of time off, you would earn $22,880. The federal poverty rate for a family of four is $24,600 -- and the formula for the official poverty rate understates the difficulty of surviving at that income level.

And about that $1,000 bonus. Aside from the one-time nature of the payout that does nothing to boost workers' basic pay, a worker only qualifies for the full amount of that bonus after 20 years at the company. Walmart's high turnover rate means a very tiny percentage of its 1.5 million US workers will ever see the money. It's simply an almost cost-free PR stunt.

http://cdn.cnn.com/cnnnext/dam/asset...m-plus-169.jpg

America needs higher wages, not lower taxes


The Walmart heirs, a handful of people, were collectively worth in November 2017 well over $150 billion. For context, the federal minimum wage should be $19 per hour based on productivity over the last four decades. In fairness, the underpayment of workers compared to how productive they have been, and the shamefully low level of the federal minimum wage at $7.25 per hour, is a scandal engaged in by the government and sustained by thousands of companies, not just Walmart.

But, to top it off, while it trumpeted the piddling wage increase, the company was stabbing its Sam's Club workers in the back.

This entire approach is consistent with a company that is accused of hushing up bribery and is the target of a broad class-action suit on gender discrimination.

It has been the defendant in scores of cases, including class actions, or group suits, accusing the company of wage-law violations. Unlike other retailers, it would not sign on to a safety code in Bangladesh after the horrific 2012 fire at a facility where 55% of the product was destined for Walmart shelves. And, finally, taxpayers effectively underwrite the company through subsidies and Walmart workers' reliance on food stamps, health care and other support because their paychecks don't cover basic needs.

As the country's largest private employer, Walmart is often pointed to as the trendsetter. That is probably true, but perhaps not in the manufactured, rosy image its corporate executives and some in the Republican Party try to project. Walmart makes its profit by exploiting poverty -- the poverty of its workers and the communities where Walmart stores are often the only option. It's a business model that has steadily robbed workers and undermined the country's long-term prosperity.

http://www.cnn.com/2018/01/13/opinio...ion/index.html

It's pretty obvious why wages were flat and static during the Obama years when you have DemoQuacks like Tasini criticizing companies who raise their wages, pay bonuses and increase their benefits packages.

Amazon raises minimum wage to $15. for all US employees