Walmart to help its workers pay college tuition

Walmart announced plans Wednesday to offer subsidized college tuition for its 1.4 million workers in the United States, joining a growing list of companies that are helping employees pay for higher education as a perk in a tight labor market.

The giant retailer will pay tuition for its workers to enroll in college courses — online or on campus — to earn degrees in either supply chain management or business, company officials announced at Walmart’s annual shareholder meeting in Bentonville, Ark.

Full- and part-time Walmart workers can use the subsidy to take courses at the University of Florida; Brandman University in Irvine, Calif.; and Bellevue University in Bellevue, Neb.

The three universities were chosen because of their high graduation rates, particularly among part-time students, and their experience with those already in the workforce, Walmart executives said. The employees will not be obligated to continue working for Walmart after they get their degrees and must put up only $1 a day toward the cost of classes.

“We feel like this is another step forward in investing in our associates,” said Julie Murphy, an executive vice president in Walmart’s U.S. operation.

Walmart, the country’s largest employer, introduced the tuition subsidy as it seeks ways to retain workers at a time of low unemployment. Employers such as Starbucks and Amazon also offer tuition support.

Walmart, which has faced criticism over low pay and poor working conditions, is also trying to burnish its image while expanding its presence in more upscale markets online.

This year, Walmart raised its base wage $2, to $11 an hour, and expanded its maternity and family leave benefits. The company has also begun offering lower-level store managers more job training programs, where employees learn basic management skills and graduate in ceremonies.

Activists groups — including Organization United for Respect Walmart, which was staging demonstrations in Bentonville through the week — argue that the company should raise hourly wages to at least $15, a figure that Walmart’s rival Target has committed to. Another group, Making Change at Walmart, a project affiliated with the United Food and Commercial Workers International Union, said it was skeptical of Walmart’s promises and pointed out that the company had announced its wage increases the same day that word spread of the planned closing of 63 Sam’s Club stores.