Walmart employees to get raises

[Zippyjuan]

http://www.usatoday.com/story/money/...ises/23666047/

After years of employee protests and outrage over meager pay, Walmart said Thursday that it will spend $1 billion this year to give raises to half-a-million workers.

About 500,000 full- and part-time associates at both Walmart and the company's Sam's Club warehouse stores will start making $9 an hour or more in April. The world's largest retailer made the announcement Thursday as part of its fourth-quarter earnings report. That's at least $1.75 more than the federal minimum hourly wage of $7.25. By February 2016, hourly employees will make at least $10 an hour after completing about six months of training.

CEO Doug McMillon said that the decision to hike wages was made as part of a strategy to retain employees and improve customer service.

"We want associates that care about the company and are highly engaged in our business and are leaning in," he said. "Those feelings generate a customer experience that drives growth."

Walmart shares closed down 3.21% in afternoon trading to $83.52.


Walmart employs more than 1.3 million people in the U.S. Of the 500,000 employees getting raises, approximately 6,000 currently make the federal minimum of $7.25 an hour, says spokesperson Kory Lundberg. The remaining 494,000 employees getting raises are either making between $7.25 and $9 an hour, or more than $9 an hour and are getting raises to meet new minimum or maximum pay grades for certain positions.

Full-time employees currently make an average of $12.85 an hour, and part-time employees make an average of $9.48, Lundberg says. Those averages will increase to $13 and $10 respectively under the new plan.

If you work 30 hours a week, that additional $0.15 an hour translates to an extra $4.50 a week before taxes. About a gallon and half of gas. And to note that while 6,000 make the federal minimum wage, most states have minimum wages higher than the federal one and does not say how many get the state minimum wage.

[Ronin Truth]

Must be a lot of significant union grumbling again. Thanks for raising costs and prices.

[green73]

Schiff: The Unseen Consequences of Wal-Mart’s Wage Hike

Wal-Mart announced yesterday that it is going to raise its minimum wage to $9 an hour, which will affect a half-million employees. Many are praising the company and saying this will improve the lives of low-wage workers, while also providing a boost to the American economy. However, Peter Schiff isn’t so optimistic. He explained to Yahoo! Finance why Wal-Mart’s minimum wage increase isn’t necessarily a net positive for the economy.

The wage increase will cost Wal-Mart about $1 billion this year. Who knows if Wal-Mart will pass along the cost of higher wages to its customers by raising prices? More importantly, Wal-Mart will probably cut back on hiring, which means low-income Americans will have that much more difficulty finding a job.

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[Spikender]

The Walmarts where I live are already horribly understaffed and miserable circuses of corporate laughability.

Here's a toast to more of that. Oh yeah.

[silverhandorder]

Looks like good money.

[juleswin]

Good for walmart, I wish they can find even more ways to raise wages while cutting prices. Screw Peter Schiff for being the eternal pessimist. They did this one their own free will without govt force and for me, I hope it works out for everyone.

[CaptUSA]

Wait, you mean they did this without a law telling them to?!! That doesn't seem right.

[green73]

Wait, you mean they did this without a law telling them to?!! That doesn't seem right.

Probably a promise of a subsidy floated their way.

[Zippyjuan]

Must be a lot of significant union grumbling again. Thanks for raising costs and prices.

We don't want good paying jobs. We want low prices. Thanks China and Walmart for contributing to the growing middle class!

Walmart had $130 billion in sales and $16 billion in profits last year. http://www.forbes.com/sites/maggiemc...things-around/

[Spikender]

If I could pay a penny for my China made umbrella from Walmart, I would.

[CaptUSA]

We don't want good paying jobs. We want low prices. Thanks China and Walmart for contributing to the growing middle class!

Walmart had $130 billion in sales and $16 billion in profits last year. http://www.forbes.com/sites/maggiemc...things-around/

How much did everyone who shops there save?

[Zippyjuan]

How much did the people at the stores Walmart customers used to shop at lose? And the stores those people shopped at? But well paying jobs don't matter. (It is a trade-off- we don't get both. Cheap prices and fewer, low paying jobs or higher prices and more higher paying jobs).

[CaptUSA]

How much did the bank tellers lose when we got ATM's?

[Ronin Truth]

We don't want good paying jobs. We want low prices. Thanks China and Walmart for contributing to the growing middle class!

Walmart had $130 billion in sales and $16 billion in profits last year. http://www.forbes.com/sites/maggiemc...things-around/

Everybody hates WalMart except for the customers and the stockholders.

[CaptUSA]

It is a trade-off- we don't get both.

And that's BS! We do get both.

You say that Walmart had $16 billion in profits. WE can guess roughly, their shoppers saved about the same. That's $32 billion. Subtract the lost profit of existing businesses (Which has to be lower than Walmart's profits), let's say $15 billion, to be conservative. That's still a increase to the economy of $17 billion. Some of that goes right into other jobs - like home construction, renovation, other services... and some goes into investments. Which other companies then use to hire employees (or would if the conditions were favorable, but that's another story).

Damn Keynesians...

[juleswin]

How much did the people at the stores Walmart customers used to shop at lose? And the stores those people shopped at? But well paying jobs don't matter. (It is a trade-off- we don't get both. Cheap prices and fewer, low paying jobs or higher prices and more higher paying jobs).

Only if the consumers kept on shopping at the high wage paying mom and pop stores that existed before walmart, we would still have them and their good paying jobs today. But the consumers allowed themselves to be seduced by walmart cheap prices. So lets all blame the decline of the middle class of greedy Americans, their pursuit of low prices has lead to the loss of millions of good paying low skilled work.

From today onwards, I am boycotting Americans. Btw, I don't shop at walmart because one always have to bring advertisement from other store to get a low price and I rather shop at the store advertising the low price than go to walmart. So I boycott walmart for a different reason than most.

[NorthCarolinaLiberty]

CEO Doug McMillon said that the decision to hike wages was made as part of a strategy to retain employees and improve customer service.

"We want associates that care about the company and are highly engaged in our business and are leaning in," he said. "Those feelings generate a customer experience that drives growth."

LOL. This is nothing more than a PR move. They timed this with the multiple minimum wages increases in multiple states. Now they're making it sound like a "strategy."

The slickness goes on. Nice propaganda piece, bub.

[Jordan]

Not sure why anyone would take a dump on Wal-Mart for this very patriotic move.

Economically, this pretty important. Wal-Mart just increased the bar for wages at the bottom. That's probably a good thing.

Also, although the OP's copied article shows that most people are already earning close to $9 per hour, few, if any, are already earning $10. After one year, $10 will be the default wage. At 20 hours per week, that's another $20 in workers' pockets. Good for them.

I think it's a smart business decision. With unemployment under 6%, more competitive wages should bring better employees. It was bound to happen.

[angelatc]

The Walmarts where I live are already horribly understaffed and miserable circuses of corporate laughability.

Here's a toast to more of that. Oh yeah.

Ye, I think this is more about employee retention than union interests.

[angelatc]

How much did the people at the stores Walmart customers used to shop at lose? And the stores those people shopped at? But well paying jobs don't matter. (It is a trade-off- we don't get both. Cheap prices and fewer, low paying jobs or higher prices and more higher paying jobs).

I used to work at one of those Mom & Pop shops that liberals love to fantasize about. We all made minimum wage and had zero benefits. Their prices were higher. Most of the money that was "lost" was lost by the manufacturers, not the consumers and not the shop owners. (Yes they lost but the money was relatively insignificant in the over all scheme of things.)

[silverhandorder]

How much did the people at the stores Walmart customers used to shop at lose? And the stores those people shopped at? But well paying jobs don't matter. (It is a trade-off- we don't get both. Cheap prices and fewer, low paying jobs or higher prices and more higher paying jobs).

We have the same movement in degreed jobs too. I don't think politics can stop this. Everyone wants everyone else to work hard for the money they paying with. So w/e I think that is a good development.

[brushfire]

At least there's been no inflation... At least they can buy something with that extra $4.

...in India a $4 tip would make me some lifelong friends.

[NorthCarolinaLiberty]

A couple people here have mentioned the so-called "mom & pop" stores. The idea that all these mom & pop stores were/are higher priced is mythical. It's true of certain stores: gift shops, book stores, novelty stores, etc. It is not true however, of many others type stores.

Big box stores and other types are often higher because of overhead and other costs. The box of nails that cost $17 at my local hardware cost $25 at Lowes. The oil filters, air filters, oil, etc. for my mower are cheaper at the local dealer than at Lowes. Jimmie Johnson's six titles aren't because he's racing like a hillbilly moonshiner.

Places like walmartt also downsize their products or pick runt products. The was a run on ataulfo mangos last year. Everybody had them on sale for .79. My wife and her friend bought them from walmartt. I got them from Food Lion and the local produce store. The walmartt mangos were visibly smaller, so I weighed them. The Food Lion and local produce mangos were larger than the walmartt mangos by an average of 3 ounces.

I have a number memory like Rain Man, and I don't see walmartt being lower than Food Lion. A survey a couple of years ago showed Target was lower during a certain period. Target however, is just as bad. Not to mention the lousy dollar stores, bastard children of the great blue dump.

There is also quality. Fry up Coleman natural beef and compare it to walmartt's beef or other type beef. The difference in shrinkage--not to mention taste--is significant. Compare a big box store pressboard, scratch-up, veneer dining table versus an Amish oak table. Amish don't even charge that much, and you still get better value from the Amish. There is just no comparison when you use fast growth Chinese trees in these lousy pressboard tables.

There is a reason Levis jeans at walmar, dollar stores, etc. have fewer rivets. Those rivets are not there for cosmetic reasons. The fishing rods sold at waldump are not being baked in 3000 degree ovens. Compare a $100 walmartt mower lasting two years versus a $300 mower lasting 10 years.

The list goes on. It doesn't take a mathematician to figure out value.

[amy31416]

Mom & Pop stores are more expensive, but you get better service. It's silly to think otherwise if you've actually frequented both types of stores.

The quality argument is one worth having though.

[KCIndy]

This is a real picture. Nope, it's not altered in any way. I took it myself. Anyone want to guess where?

[NorthCarolinaLiberty]

This is a real picture. Nope, it's not altered in any way. I took it myself. Anyone want to guess where?

North Dakota?

[KCIndy]

North Dakota?

Yeah, this was in Williston, North Dakota, heart of the oil boom country. They may not be paying $17/hour now. I took this last November when I was driving through. Ever since the crash in oil prices, the Canadian and U.S. oil industry has taken it on the chin.

Bottom line, though: stores WILL pay what is necessary to get workers.

[NorthCarolinaLiberty]

Ever since the crash in oil prices, the Canadian and U.S. oil industry has taken it on the chin.

KCIndy,

Have you seen negative effects over the past year in the fracking industry? I'm wondering what it's now like in eastern Montana, N Dakota, and W Texas.

[KCIndy]

KCIndy,

Have you seen negative effects over the past year in the fracking industry? I'm wondering what it's now like in eastern Montana, N Dakota, and W Texas.

I haven't been to/through any of the U.S. fracking locations lately, but I can attest to the fact that the dropping oil prices have taken a terrible toll on the oil industry in northern Alberta. Up there they do a lot of oil sand mining. Essentially, the sand in the area is saturated with oil/petroleum residue. The sand is scooped up, processed, and crude is extracted from it.... but it's an expensive process, just like fracking. Once the price of oil fell below $80/barrel or so, they were losing money and started to lay off workers.

Personally, it has already costs us several trucking loads up to the area. They aren't using supplies like before, so orders are being cancelled. Fort MacMurray, Alberta is the largest city in the area, and last time we were up there about a month ago, things were *nothing* like they were last year. Much less activity, many fewer people.

I'm guessing the same thing is happening (or about to happen) in the fracking areas of the U.S.

Unfortunately, it's like those scenes from western movies where the "boom town" thrives for a few years, then becomes a ghost town once the gold, silver or whatever is being mined gets played out, and it underscores the importance of an economy having a solid and broad-ranging base.

[Bastiat's The Law]

$17/hour is pretty low in Williston, ND