WalMart Raises Starting Wage To $11, Provides One-Time Bonus Following Trump Tax Reform

Add Wal-Mart to the growing list of companies boosting employee compensation in the aftermath of the passage of Trump's tax reform.

In a just released press release, Wal-Mart Stores announced it is boosting its starting hourly wage to $11, expanding maternity and parental leave benefits and providing a one-time cash bonus for eligible associates - those who have been with the company at least 20 years - of up to $1,000, capitalizing on the U.S. tax overhaul to stay competitive in a tightening labor market.

The company said that the increase wil take effect in February next month and will cost approximately $300 million incremental to already planned wage hikes. The one-time bonus of up to $1,000 is based on seniority and will amount to an additional $400 million. The company is also expanding its maternity and parental leave policy and adding an adoption benefit.

Walmart CEO Doug McMillon said that “we are early in the stages of assessing the opportunities tax reform creates for us to invest in our customers and associates and to further strengthen our business, all of which should benefit our shareholders. 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. Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S."

As Bloomberg adds, Wal-Mart, the nation’s largest private employer, has fought in recent years to improve its image in the U.S., as it weathered criticism over its treatment of employees. With the wage increase and bonus payment, the world’s biggest retailer seeks to even its pay gap with resurgent rival Target Corp., while simultaneously sending a high-profile thank you to the U.S. government for slashing the corporate tax rate.

The full release can be found here.

Comments

Dilluminati Arnold Jan 11, 2018 9:36 AM Permalink

It's the property tax thing.. I "believe" that there is a 10K limit?  I'll have to see also, I get mine done by a professional and she earns her money.. I'm paying off a Jeep and I'm trying to guess what I'll have left?  I need to figure out of I want a 2nd property in WV and what that means tax wise?  I honestly don't freaking know and I can keep up on most stuff financial but this is one where I want to see the licensed professional do the return and see where I'm at.

In reply to by Arnold

Dilluminati Cash2Riches Jan 11, 2018 9:40 AM Permalink

Overall here is my take on it.. the property tax change, should be enough for homeowners to fall under, should force land management people/companies to increase rents.. (I believe need mo facts) the wages as we are empirically seeing seem to marginally indicate a bit more in payroll, I'm on a contract, my spouse at the hospital proper got 5% increase in Dec. Some states allowed early payments some did not, PA specifically does not allow property tax pre-payment but I "believe" it's a capped deduction???

I honestly don't know I'll drop my stuff off early I bet the it's a hectic season.  I think if there is a cap on prop tax deduction then people who do rentals have to pass that onto the renter, who if.. now that is an if.. makes more might look into buying? The drop of penalty for healthcare will also free up money for younger people to buy..  Healthcare for young people is a lottery they don't want to win.. and it was a tax and an unfair one at that.. old people should be prepared to paygo or forego healthcare.. 

In reply to by Cash2Riches

wbill Dilluminati Jan 11, 2018 1:37 PM Permalink

Property tax to renters is an expense under their business so it makes no difference to  them what the new tax bill says about deductions.  It's the high asset owners who won't get the deductions but the reduction in tax rate likely makes up for it on the bottom line. This law is inflationary, but it is on the capital / wage side and that should increase the home buying market. Healthcare is the real question for the next couple years. IMO  

In reply to by Dilluminati

Posa Dilluminati Jan 11, 2018 10:11 AM Permalink

What the tax plan means is that the effective corporate tax rate is going to come in under 10% with more multinational behemoths paying zero taxes... with the resulting deficits piling more onto the $21 trillion in US debt --- all for no reason except to engorge the Predator Class... It also means even more harsh budget cuts... so the tiny handful of US workers who get crumbs will give them up in lost benefits, entitlements and amenities....

 

A masterful fleecing if I say so... meanwhile I heard a Fed researcher from Atlanta announce yesterday at a conference that the tax cut will result in virtually zero increase in corporate investment in plant and equipment. Then modest uptick in the economy over the past year is running its course; household and corporate balance sheets still mired in massive debt fueled only by the asset bubble (which the tax cuts will further inflate- massively) -- and still industrial production and manufacturing output is below 2007 levels.

In reply to by Dilluminati

spieslikeus Jan 11, 2018 8:31 AM Permalink

I live in Bentonville and am surrounded by Democrats. Wonder how many will turn down the raise/bonus because they don't agree with Trump nor his tax plan. I expect the sound of crickets.

pazmaker Jan 11, 2018 8:37 AM Permalink

The last time I went to a walmart there weren't any cashiers left.  almost all self checkout .  they are pushing more and more mobile checkout.

 

So raise your wage and offsest cost by laying off more employees.... got it!

rejected pazmaker Jan 11, 2018 9:27 AM Permalink

We don't use self check out but there are plenty of morons that do. Home Depot and Lowes are going off the deep end using self check out. One day I left a basket full of stuff at Home Depot when they had no cashier open. As soon as I was walking away they said they would get a cashier,,, I smiled and left. 

In reply to by pazmaker

Herdee Jan 11, 2018 8:46 AM Permalink

Did Walmart just make a withdrawal of its' hidden billions in their offshore tax havens such as the Cayman Islands? I think so. They're just giving back a pittance of what they've raped out of their slave labour force. The goddamn greedy low-lifes.

libertyanyday Jan 11, 2018 8:54 AM Permalink

11 bucks , who in their right mind at 35 yrs old works at walmart.........?? After taxes you have ' spending money ' for a High School Student...........learn a skill, join the military for a guranteed a school, go to vo tech, comm college..............do something man.

Dilluminati libertyanyday Jan 11, 2018 9:48 AM Permalink

It takes something post FREE PUBLIC EDUCATION, anything post HS grad.. Guess what you get for free??  The people at my reunion were in two groups: those who did secondary education or military and those that did not.  I literally could not recognize some that had just graduated HS and let themselves go.  It was sad.. some good to see.. but an eye opener at the 30th

In reply to by libertyanyday

shovelhead Jan 11, 2018 8:54 AM Permalink

Thank God we can still subsidize their healthcare, Foodstamps, Section 8 housing and "Earned income credits" so they can keep making those new car payments.

I was waiting for Wifey to pick up milk and out of curiosity, I watched a gal come out with her cashier's smock, jump into a brand new Suburban with the leather seats and the fancy rims. I doubt her entire monthly wages would be able to cover the payments and insurance.

Who knows? Maybe her husband had a Govt. job or was a lawyer, but the odds were she was a single mom with all of the above.

Davidduke2000 Jan 11, 2018 8:55 AM Permalink

walmart should cut the wages for the employees who work in shipping, every time I order something the box arrives ripped , fat in the middle and cannot be lifted . I order people canned stew for my difficult dog, either they send me all the banged up cans or they get all banged up in the shipping and all other packages get smashed by the cans. $8/h is even too much.

BigPunny Jan 11, 2018 8:55 AM Permalink

One-time bonus = LOL

 

$11 minimum wage = you've been fooled because Wal-Mart said this nearly 2 years ago:

"The company said Wednesday that the second round of wage hikes in February will bring the average hourly wage to $13.38 for full-time workers and $10.58 per hour for part-timers."

LOL. 

This is called propaganda. They're still trying to sell you a pig with lipstick known as the Trump tax cut for the uber wealthy. 

Within 8 years, most people's taxes will go up while the richest among us will pay drastically less. 

Great job!

Jeeves Jan 11, 2018 8:57 AM Permalink

Big deal. We'll all still be subsidizing their employees with EBT, Section 8 and all the other goodies at the social freebie buffet. 

IPA Jan 11, 2018 9:08 AM Permalink

And suddenly millions of people no longer qualify for SNAP, free daycare, free health care, free phones. If you like your wage increase... 

overmedicatedu… Jan 11, 2018 9:21 AM Permalink

the above economic genius posting here..fuks never understood that .gov money is not in your pocket..after all 10 cents on the dollar drips down to us tax payers, while progessive pols all seem to earn millions on 100,000 salary..funny these genius here never think of that..paid to my guess

MuffDiver69 Jan 11, 2018 10:13 AM Permalink

Damn...I was making $11 bucks an hour in college to sand blast bridges in late eighties..Hard,sweaty,nasty work and gotta love heights, but the now wife loved the cash. On a forty hour week with the payroll tax deduction as well in February, that’s a nice little bit of change for these people. I couldn’t imagine living on that though..

shankster Jan 11, 2018 10:20 AM Permalink

IF this tax plan was worth 2 shits it would have been retroactive to 2017 and the individual mandate would have been stopped at the end of 2017 instead of 2019...taxpayer gets rail-roaded once again. Support the Fair Tax and shut down the IRS and control gubmit spending.