US retailer Wal-Mart will give one of the largest single-day, private-sector pay rises to date on 20 February.
The raises fall under action being taken as part of Wal-Mart’s second phase of its two-year plan to invest $2.7bn in its employees. The benefits will be felt by more than 1.2 million Wal-Mart U.S. and Sam’s Club associates (1.1 million hourly associates at Walmart).
Judith McKenna, Chief Operating Officer for Wal-Mart U.S., said: “We are committed to investing in our associates and to continuing to simplify our business. When we do so, there is no limit to what our associates can accomplish. Our customers and associates are noticing a difference. We’re seeing strong increases in both customer experience and associate engagement scores. Five straight quarters of positive comps in our US business is just one example of how helping our associates grow and succeed helps the company do the same.”
The rises at Wal-Mart U.S. will see all associates hired before 1 January 2016 earn at least $10/hour, while the starting rate of its non-entry level hourly pay bands will be raised. New entry-level associates will start at $9/hour before moving to $10/hour after completing Walmart U.S.’ retail skills and training programme called Pathways. Those earning more than $10/hour, will receive an annual pay increase in February. Associates at or above their pay band maximum will receive a one-time lump sum payment equal to 2% of their annual pay.
After all the changes come into effect, Wal-Mart’s average full-time hourly wage will amount to $13.38/hour. The minimum wage in the US varies by state, but ranges from $7.25 to $10.
