Walmart ups wages, shutters Sam’s Clubs
Wal-Mart Stores Inc. said it will increase its entry-level minimum wage to $11 an hour and give cash bonuses to certain workers as a result of federal tax reform legislation passed last month as it announced it was closing 63 Sam’s Clubs and laying off thousands of workers.
The company is in the early stages of assessing opportunities that the tax reform creates, Walmart CEO Doug McMillon said.
“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,” he said.
The wage hike to $11 in February wouldn’t affect workers in Massachusetts, where the minimum wage has been $11 since 2017. The increase is expected to cost Walmart about $300 million. Bonuses to “eligible” hourly workers, which will cost $400 million, will be based on length of service and top out at $1,000 for workers who have been with the company at least 20 years.
Walmart also said it is expanding its parental and maternity leave benefits. Full-time hourly workers will get 10 weeks of paid maternity leave and six weeks of paid parental leave, while salaried workers will get six weeks of paid parental leave. The company is adding a $5,000-per-child adoption benefit that can be used for adoption agency and translation fees, and legal and court costs.
A dozen of the shuttered Sam’s Clubs, meanwhile, will be converted to e-commerce fulfillment centers to increase delivery speeds for online orders. The company will have 597 clubs after the closures.
Sam’s Club CEO John Furner said, “Transforming our business means managing our real estate portfolio.”