Walmart To Give Raises, Hand Out Bonuses And Add Benefits That Will Aid More Than One Million Employees
January 11, 2018
(BENTONVILLE, ARK.) -- Walmart, the world's biggest private employer and one that has taken numerous hits over the years from the media, employees, former employees and unions for paying low wages and providing thin to barely existing benefits relative to other companies, is in the news today because it is raising wages.
Walmart has announced its starting salary for U.S. workers will be boosted to $11 an hour and that the company is giving a one-time cash bonus of up to $1,000 to eligible employees as well as expanding its maternity and parental leave benefits.
In a news release published today Walmart says more than one million associates will benefit from the combined wage and benefit changes.
The company also said it is creating a new benefit to assist associates with adoption expenses.
“Today, we are building on investments we’ve been making in associates, in their wages and skills development,” said Doug McMillon, Walmart president and CEO. “It’s our people who make the difference and we appreciate how they work hard to make every day easier for busy families.”
McMillon said tax reform gives the company the opportunity to be more competitive globally and to accelerate plans for the U.S.
This increase in wages to associates will take effect in February and will be approximately $300 million incremental to what was already included in next fiscal year’s plan. The one-time bonus represents an additional payment to associates of approximately $400 million in the current fiscal year, which ends Jan. 31, 2018.
Employees will hear more from their managers in the coming days about details.
But in general employees in the U.S. will share in tax savings through:
· A one-time bonus benefiting all eligible full and part-time hourly associates in the U.S. The amount of the bonus will be based on length of service, with associates with at least 20 years qualifying for $1,000. Qualification will be determined before the end of the month and payments will be paid as quickly as practical thereafter.
· An increase in Walmart’s starting wage rate to $11 an hour, effective in the Feb. 17, 2018, pay cycle. The change is in addition to wage increases already planned for many U.S. markets in the coming fiscal year. The increase applies to all hourly associates in the U.S., including stores, Sam’s Clubs, eCommerce, logistics and Home Office.
· An expanded parental and maternity leave policy, providing full-time hourly associates in the U.S. with 10 weeks of paid maternity leave and six weeks of paid parental leave. Salaried associates will also receive six weeks of paid parental leave.
· Walmart will provide financial assistance to associates adopting a child. The adoption benefit, available to both full-time hourly and salaried associates, will total $5,000 per child and may be used for expenses such as adoption agency fees, translation fees and legal or court costs.