Walmart Gives Workers $11 Starting Wage Thanks to Tax Reform

Retail giant says wage increase and bonuses take effect next month…

Photo by JeepersMedia

(Daily Caller News Foundation) Walmart is capitalizing on its newfound savings under the recently signed tax reform bill by increasing workers’ starting hourly wage to $11 and providing substantial bonuses to employees, in an effort to remain competitive in an increasingly tight labor market.

The retail giant announced Thursday that the wage increase and seniority based bonuses take effect next month.

The one-time bonuses of up to $1,000 will cost the company $400 million, while increasing workers’ starting hourly wage from $9 to $11 will cost $300 million on top of pre-planned wage increases.

“Today, we are building on investments we’ve been making in associates, in their wages and skills development,” Doug McMillon, Walmart president and CEO, said in a statement. “It’s our people who make the difference and we appreciate how they work hard to make every day easier for busy families.”

McMillon added:

We are early in the stages of assessing the opportunities tax reform creates for us to invest in our customers and associates and to further strengthen our business, all of which should benefit our shareholders.

However, some guiding themes are clear and consistent with how we’ve been investing — lower prices for customers, better wages and training for associates and investments in the future of our company, including in technology.

Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.

The tax bill, which lowered the corporate rate from 35 to 21 percent, also prompted the company to expand its maternity and parental leave policy and provide financial assistance to employees planning to adopt.

Walmart — long derided for providing low wages and substandard working conditions — has been forced to raise wages and improve worker benefits in the face of competition from other big box retailers and successive years of a tightening labor market.

**MORE COVERAGE OF TAX REFORM at LibertyHeadlines.com**

Target, one of Walmart’s top labor competitors, announced they would increase their starting hourly wage to $11 in September, vowing another increase to $15 by 2020.

The announcement comes after a number of other massive U.S. firms such as Waste Management, Jet Blue and Bank of America made similar promises to increase employee wages and bonuses.

Republished with permission from Daily Caller News Foundation via iCopyright license.

  • Steve G.

    Walmart is another company doing the right thing. This one however; really stings the Democrats after they’ve gone after Walmart for so many years. MAGA!

    • goodnessalwayswins

      So u don’t think the richest company in the country should have been “gone after” by anyone because they paid so badly that alot of their full time employees were on food stamps? I think u are so obsessed with being against anything Democrats are for that u just gave up caring about true fairness if Democrats support it.

      Do u really think it’s ok that a wealthy company pay it’s employees as little as they feel like paying them?

      And don’t forget alot of people are saying Walmart gave ppl this raise to stop the public from being angry with them for closing their Sams Club stores.

      Anyway, whether thats true or not it’s really not great that u would be on Walmarts side for treating their employees the way they do. You’re being a total betrayor of those who are less fortunate and if you think they should’ve just gotten another job if Walmart didn’t pay well you’re not living in reality and don’t have the guts to admit just about anything.

      • Steve G.

        I’ll admit this; goodness does always win, which is why Trump won.

  • brooksmd

    Let me go check CNN and MSNBC to see if this is true or not. Probably can’t find it anywhere on their sites.