Walmart has said this week that more than 1.2 million Walmart U.S. and Sam’s Club associates will receive a pay increase this year. The increases will lift the hourly full time wage to 13.38 the company said. Wal-Mart said all employees hired before January 1st, 2016 would earn at least $10 an hour up from the $9 minimum.
WalMart Increase Employee Wages and Enhances Benefits
Wal-Mart said that the raises that will take place on February 20th would rank as one of the largest single day private sector pay increases ever. This also comes at a price as 10,000 employees have lost their job amidst the announcement that many Wal-Mart stores will close and the remaining will see increases in wages.
“These changes will give our U.S. associates the opportunity to earn higher pay and advance in their careers. We’re pursing a comprehensive approach that is sustainable over the long term,” Doug McMillon CEO, Wal-Mart Stores.
“We are committed to investing in our associates and to continuing to simplify our business. When we do so, there is no limit to what our associates can accomplish,” said Judith McKenna, chief operating officer for Walmart U.S. “Our customers and associates are noticing a difference. We’re seeing strong increases in both customer experience and associate engagement scores.
Along with increased wages comes:
- A simplified PTO (Paid Time Off) policy, effective March 5, 2016 that will streamline paid vacation, sick time, personal time and holiday time into one category.
- Short Term Disability Basic plan at no cost to full-time hourly associates. Effective Jan. 1, 2016, the plan offers more financial protection to workers who need to be away from work for an extended period of time due to their own medical needs such as an illness, injury or having a baby.
- Short Term Disability Enhanced plan, which costs less than the company’s prior voluntary plan and provides more coverage. Associates would receive up to 60 percent of their average weekly wage with no weekly maximum for up to 26 weeks.
The across-the-board pay increase is aimed at addressing complaints by some longtime store workers about Wal-Mart’s more-generous starting wages for new hires. The company also is hoping to stem defections and the sums it spends to hire and train new employees. Wal-Mart loses about half a million store workers a year.