Wal-Mart Stores Inc. increases pay of United States hourly workers

Under the plan, most full-time employees will see their wages increased by $1 – to $10 an hour.

Associates now earning more than $10 an hour will receive an annual pay increase in February rather than waiting until their anniversary date.

After all of these increases, Walmart said its average full-time hourly rate will be $13.38 per hour for full-time workers and $10.58 per hour for part-time workers.

The company announced plans for the raise a year ago as part of a two-step, $2.7 billion investment in wages, benefits and training, although it had not disclosed details of the second phase in which it is bumping its mininum pay to $10 an hour, following an increase to $9 in April. The company also announced a simplified paid-time-off policy, which includes allowing workers to carry up to 80 hours (48 hours for part-timers) of paid time off from year to year. Scott Dobroski, a career trends analyst at jobs website operator Glassdoor, said the raise and paid time off changes should help Wal-Mart attract employees.

The statement comes just days after Wal-Mart announced it would close 269 stores worldwide, including 154 in the USA, according to Reuters. The raise is scheduled to take place in February 2016, as the company struggles to retain employees owing to contracting labor market and the turnover endemic in the retailing sector.

Wal-Mart has maintained that if it keeps its workers happy, they will serve customers better. Wal-Mart Stores now has an average rating of “Hold” and a consensus price target of $65.42.

“We are committed to investing in our [employees] and continuing to simplify our business”, said Judith McKenna, chief operating officer for Walmart U.S.in a news release.

Wal-Mart has also been ordered to tell workers at the 29 stores where workers were disciplined or fired for strike-related absences that such organizing activity is protected. Wal-Mart made $16.2 billion in profit on $482.23 billion in revenue in its last fiscal quarter, according to a regulatory filing. Wal-Mart said on Wednesday that its hourly workers employed as of December 31 would receive a 2 percent increase in pay.

Carlile added that “due to this choice by Wal-Mart, employees will be without jobs or forced to travel for employment opportunities, our community will suffer and be negatively impacted by the poor planning and actions of this huge retailer”. Then last June, Wal-Mart said it would raise starting wages for more than 100,000 USA department managers. The Walmart U.S. segment operates retail stores in all 50 states in the United States, Washington D.C. and Puerto Rico, with three primary store formats, as well as digital retail. This is boosting its e-commerce business and enhancing Pickup services for customers.

Dillard’s was up 3.1 percent in active trading.