Walmart Pay Raise 2016: Retailer Increases Wages, Union Calls It A ‘Stunt’

Wal-Mart Stores Inc said Wednesday that more than 1.2 million employees would get a raise in 2016, and the retailer will allow paid days off to be carried over into the next year as it aims to retain workers amid a tight us labor market.

Walmart said February’s pay raise is forecasted to increase the average wage of full-time workers to $13.38 per hour and the average wage of part-time workers to $10.58 per hour.

Workers already earning at least $10 an hour will also receive a pay bump.

After the changes, Walmart’s average full-time hourly wage will be $13.38/hour.

Of the 154 store closures in the USA, 102 of them are under the Wal-Mart Express name, which were opened as a test in 2011. But Wal-Mart has been willing to take a hit to the bottom line. Many new employees were getting increases that put their pay closer to that of workers who had been at Wal-Mart a long time.

An exterior image of a Walmart store in Turnersville, New Jersey. She said after the pay increases last April, workers saw their hours cut.

Wal-Mart has maintained that if it keeps its workers happy, they will serve customers better. The organisation is also offering a short-term disability enhanced plan, which will entitle employees to receive up to 60% of their average weekly wage with no weekly maximum for up to 26 weeks. The move would cost around $2.7bn over fiscal years 2016 and 2017, according to Wal-Mart. Wal-Mart operates more than 4,500 stores in the U.S. The increase in wage will affect nearly 1.2 million employees in the United States working at the Wal-Mart and Sam’s Club stores.

Wal-Mart’s move to broaden its pay increase shows the challenge employers have in using wages to lure workers as unemployment rates decline. Woodstock’s holdings in Wal-Mart Stores were worth $2,689,000 at the end of the most recent quarter.

Judith McKenna, chief operating officer at Walmart US, said: “We are committed to investing in our staff and to continue to simplify our business”.

When the company issued its latest earnings report in October, CFO Charles Holley said workforce investments – like increasing paychecks – will put a dent in its bottom line. However, when you look at trends for the past five years, they seem fairly typical, especially considering that shares peaked at $91.35 per share in January 2015. Besides the fact that many of its workers are on some sort of welfare program, it is also estimated that Walmart corporation is one of the biggest beneficiaries of those who utilize food stamps for groceries, pulling in an estimated $14 billion in revenue of the $80 billion spent on food stamps annually.