Thursday, February 19, 2015

Walmart said to Raise Minimum Wage in April

Many Walmart Associates have been fighting for higher wages since around Black Friday in 2014. This morning one of my coworkers shared an article from Blue National Review and it appears that these associates' hard work has paid off. The article says Walmart has announced that it will be raising its minimum wage in the U.S. facilities from $7.25 to $9. This would appear to be good news, but for associates like me it leaves room for some skepticism.

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Currently job titles are associated with a pay level ranging from one to seven; the more difficult your job, the higher your level. Each level is a $0.20/hr base-rate increase. On top of an associate's base-rate annual raises can be added. Each year associates are evaluated by the assistant manager over their area. If the associate receives a below average evaluation, he or she will not receive a raise. If the associate receives an average evaluation he/she receives a $0.40 raise. In some rare cases associates receive an above average evaluation and receive a $0.60 raise. For a hand-full of associates that have been with the company for 10+ years the annual bonus adds up to be quite a lot.

The Walton family isn't a family that has given me much faith though. They have a history of screwing over associates so they can have a greater benefit. For example, during the first quarter of each year, stores are told that they must cut labor costs so severely that many part-time associates go from working 32 hours each week to as low as 12 hours a week. I understand that Q1 has a tendency to be a slow time for retail companies, but many of Walmart's competitors don't cut labor costs nearly that much. I have a strong feeling that with these new company-wide raises are actually just a PR scheme that will get the media off of Walmart's back for a while. I wouldn't be at all shocked if the company did away with annual evaluation raises, cut the level pay differential, did away with quarterly bonuses, or cut insurance benefits in order to prevent the Walton's from "losing" too much money.

With that said, I could be wrong, the raise in minimum pay could actually be a good thing. It might not just be a PR scheme. The Walton's may have actually realized that forcing associates into federal assistance programs when they're the richest family in the world is highly unethical. Who knows? I guess time will tell.

4 comments:

  1. So as I was on PR Daily I ran into this article. To me he seems... fake and not honest. Here is the link I thought you would be interested. http://www.prdaily.com/Main/Articles/18152.aspx

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    1. I agree, he seemed insincere about Walmart "caring" for its associates. He also neglected to mention the fact that the new pay increase does not effect overnight associates. Traditionally overnight associates are paid $1 more than their day-time job equivalent, but since they already make around $9/hr their pay will not increase to adjust to that differential.

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  2. Hopefully the Walton family pulls their heads out of their butts and starts treating their employees like they should. Raising the minimum wage payment sounds like a good way to kick things off. For your benefit, I hope that happens. I don't like how much they cut the hours and or jobs during the first quarter of every year. My uncle got fired from Wal-mart for the very same reason.

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