To Boost Pay In Response To Tax Bill

Walmart giving employees $1000 bonuses, raising minimum wage

The new maternity-leave policy will not apply to part-time workers, who make up a significant percentage of the company's hourly work force.

The pay increase may have also been spurred by competition from other retailers, who have announced similar pay boosts of their own. A lower P/B ratio could mean that the stock is undervalued.

The move comes after Walmart raised salaries starting in 2015 while offering more training to its hourly store employees. "The worry was that Wal-Mart, facing the same kind of wage pressures as Target amid 4.2% unemployment, would have to embark on a new round of pay increases". But right now, she has just three. That wage is far above the federal minimum wage of $7.25 per hour, but keeping pace with several states and below the minimum wage in the state of Washington, where the lowest-level workers now get $11.50 per hour.

Labour group OUR Walmart called Thursday's announcement a "substantial step" but said it still fell short of what all employees need to provide for their families.

The changes take effect next month. The bonuses will cost it about $400 million in this fiscal year, which ends on January 31. Walmart officials said its employees will determine which associates qualify for the cash bonuses before February, "and payments will be paid as quickly as practical thereafter". With a new corporate tax rate of 21 percent, the corporate tax cut is worth at least $1.85 billion to Walmart every year.

"Investing in employees is beneficial on multiple fronts, including reductions in turnover, as well as potentially enhancing the store experience for customers, which in the current shifting retail environment, is critical for any brick-and-mortar retailer", Moody's lead retail analyst Charlie O'Shea said in a statement.




"Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.", CEO Doug McMillon told CNBC. The retailer has spent about $2.7 billion to increase wages over the past few years, which has helped in improving customer service and keeping its stores clean. It has done well and strengthened its hand in online retail as many other retailers have struggled.

It will also give a one-time bonus to associates who already make $11 or more that will range from $200 to $1,000, depending on how long they've been with the company. Human labor represents a massive portion of Walmart's expenditures, seeing as the company employs 2.3 million people around the globe.

Parental leave has been another area in which retailers including Target and Ikea have been trying to offer better benefits.

Walmart said it has expanded its parental and maternity leave in the USA with 10 weeks of paid maternity leave and six weeks of paid parental leave.

The hike announced on Thursday will also increase the average hourly pay for full-time employees to $14.50 from a current $13.85. Those workers previously received up to eight weeks of maternity leave at half-pay, and were not entitled to parental leave.

Related news:

Hot News

isis-killer-beheading-video-story-top Super Mario Odyssey DLC finally brings back Luigi
Jan 12, 2018 - 03:26
An update next month for Super Mario Odyssey will bring some new cool add-on features to the game , Nintendo announced Tuesday. Once players have beaten Super Mario Odyssey and download the free update, the new Balloon based challenge will be available.

isis-killer-beheading-video-story-top Trump Administration Says States May Make Medicaid Recipients Work to Get Benefits
Jan 12, 2018 - 03:20
ME now has a proposal pending that would require able-bodied adults to be working, training for a new career, or volunteering. She said the federal government is expected to begin approving state plans for work requirements in "short order".

isis-killer-beheading-video-story-top Dark Souls Officially Confirmed for PC and Consoles, Including Switch
Jan 12, 2018 - 03:20
The Switch is not going to turn into a dumping ground for games that came out on the Xbox 360 or Wii U four or five years ago. The remastered version will be released on 25 May 2o18 with "improved framerate and resolution", according to Nintendo .

isis-killer-beheading-video-story-top Julian Assange is made Ecuadorian citizen in effort to resolve impasse
Jan 12, 2018 - 03:19
The demand for an end to the state persecution of Julian Assange must be taken up by the global working class. He's been holed up in the embassy for over five years now, with little hope of being able leave a free man.

isis-killer-beheading-video-story-top Nintendo Direct Round-Up; Everything New Coming to Nintendo Switch
Jan 12, 2018 - 03:19
Indie platformer Celeste features pixelated graphics and an assist mode that lets you tweak the difficultly level. The game will also support 4K resolution and HDR lighting when playing on PS4 Pro, and likely Xbox One X.

isis-killer-beheading-video-story-top Google Pay: Google brings Android Pay and Google Wallet under single brand
Jan 11, 2018 - 08:06
Android Pay is now Google's primary payment brand, but it's a bit awkward given it is branded as a platform-specific thing. Basically, the same way you pay for things now will continue, except it'll all be called Google Pay.

isis-killer-beheading-video-story-top Majority who experiment with cigarettes go on to become smokers, study finds
Jan 11, 2018 - 06:17
Of those surveyed about 60 % had tried a cigarette, and of these nearly 60% said they had gone on to become daily smokers. According to the Office for National Statistics, 19.9 percent of British adults smoked ordinary cigarettes in 2010.

isis-killer-beheading-video-story-top FMC says flu-related emergency visits increasing
Jan 11, 2018 - 06:09
However, some have chronic health problems and the flu can lead to complications ranging from moderate to life-threatening. Estimates are that it's about 32% effective, while last year it was 39% effective and most years it's 40% to 60% effective.

isis-killer-beheading-video-story-top Browns hire ex-Packers executive Wolf as assistant GM
Jan 11, 2018 - 01:02
Jimmy Noel was named assistant director of pro scouting, Matt Donahoe as scout and Dan Zegers as personnel coordinator. Wolf is the second Packers executive Dorsey has hired since he became the general manager of the Browns last month.

isis-killer-beheading-video-story-top Is Matt Patricia set to spurn the Lions for the Giants?
Jan 11, 2018 - 00:57
King also offered his take on McDaniels, writing that the Indianapolis Colts would be a "good fit" for the offensive coordinator. Leonard said Patricia is expected to be named as the next coach of the Giants , replacing the fired Ben McAdoo.

isis-killer-beheading-video-story-top Triad forecast: Warmer weather on the way
Jan 10, 2018 - 01:43
Today's high temperature likely will be a harbinger of warmer conditions in Forsyth County later this week, forecasters say. But from there, the probability decreases to 30 percent for precipitation and the area will head back into sunny weather.

isis-killer-beheading-video-story-top Meghan Markle deletes social media accounts ahead of wedding
Jan 10, 2018 - 01:41
Plus, it's apparently an unspoken rule among the royal family that you don't keep personal social media accounts. "Ms. Meghan shut down The Tig in April of 2017, but kept her Instagram and Twitter accounts , People reports.

isis-killer-beheading-video-story-top Modi govt posses threat to democracy: Jignesh Mevani
Jan 10, 2018 - 01:41
The police had earlier said that Mevani's request was "under consideration". He was arrested in June previous year from Himachal Pradesh.

isis-killer-beheading-video-story-top Trump Tower fire injures 3
Jan 10, 2018 - 01:38
Video footage showed several firefighters on the roof while smoke spewed out, Fox news reported . Trump's son, Eric, characterized the blaze as "small", and said it started in a cooling tower.

isis-killer-beheading-video-story-top Blizzard and Twitch announce Overwatch League media partnership
Jan 10, 2018 - 01:33
The deal is not a surprise considering that Twitch and Blizzard have a long history of collaborating for esports events. Twitch's broadcast deal with Blizzard is a multi-year pact that covers the Overwatch League's first two seasons.