Walmart increases minimum wage for 340,000 US store workers
Walmart is raising the average hourly pay for around 340,000 associates, as an attempt to recruit and keep employees in the very tight labor market for low-wage sectors.
As a result, its store employees will now get an hourly pay between $14 and $19, up from $12 to $18.
CEO of Walmart US, John Furner said the move was intended “to ensure we have attractive pay in the markets we operate.”
The move would affect around 340,000 of the company’s 1.3 million frontline hourly workers at stores across the nation.
For years, unions, legislators, and activists have pushed Walmart to improve salaries for its retail employees.
The hikes would boost the average hourly pay across Walmart stores to almost $17.50 from around $17.
However, the company’s average salary still lags behind competitors like Costco.
The increases, which will be effective from March, come in the midst of persistent inflation.
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The cost-of-living crisis has been particularly difficult to navigate for low-wage workers whose salaries are stretched by the expenses of food, gas, and other basic needs.
Walmart is adding other benefits to try to keep staff.
Furner said the firm is including more college degrees and certifications in its Live Better U program, which covers tuition and fees for part-time and full-time staff.
It is also building more high-paid positions at its auto care centers and hiring for truck driver roles, which can pay up to $110,000 in the first year.
Walmart’s efforts are also a hopeful sign as the nation’s leading retailer takes steps to retain staff when other large employers are slashing workers en masse.
Source: The New York Times