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Walmart To Raise Worker Pay to More Than $15 Per Hour

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On Thursday, retail giant Walmart announced it will raise worker pay for 425,000 workers beginning March. This will raise average Walmart worker pay to more than $15 per hour. However, starting wages will remain at $11 an hour.  The company’s total US workforce numbers at 1.5 million people, making it the country’s largest non-government employer. 

RELATED: Walmart Hiring 20,000 Workers

Earnings Fell Short

Walmart made the announcement as it reported it missed Wall Street estimates. Stock prices fell as much as 6.2% as the company expects profits to dip slightly and sales growth to slow. The retail giant’s fourth-quarter earnings generated a mixed bag. Revenue came through as Walmart generated $152.1 billion over a $148.4 target. 

However, earnings per share dropped to $1.39, which is 11 cents short of the target 1.50. Losses from Walmart’s the UK and Japanese operations drove the bulk of the shortfall and plunged the company into an unadjusted quarterly deficit. More importantly, Walmart warned that revenue growth will slow through the next fiscal year. In addition, Walmart foresees that profits will slightly decline. Meanwhile, Walmart announced in late January that it will increase its number of stores that will serve as local fulfillment centers. These are condensed modular automated warehouses built within a store or added to a store. They house pantry items, frozen foods, consumables as well as electronics.

Walmart To Raise Worker Pay

CEO Doug McMillon said that beginning March 13, Walmart will raise worker pay for digital and stocking positions. Rates will become between $13 to $19 an hour, depending on the store location. McMillon, who is also chairman of the influential Business Roundtable, previously said that the company agrees that the federal minimum wage should go higher. However, he noted geographic differences also need consideration.

Walmart and Sam’s Club workers also received a couple of COVID-19-related bonuses the past year. Last September, Walmart announced it will give approximately 165,000 hourly workers a raise. They will also provide “cross-training opportunities” and introduce new leadership roles. 

Meanwhile, rivals Amazon and Target already adjusted their starting pay to $15 an hour. Kroger, another major US retail chain, responded to Walmart’s move. “We welcome Walmart’s announcement to bring their average wage up to $15 an hour. At Kroger, our average hourly wage has been $15 an hour since 2019. In fact, our average hourly associate rate reaches over $20 an hour when accounting for health care, 401(k), and pensions that so many of our competitors choose not to offer,” a company spokeswoman said.

Continued Raises Over Time

McMillon also said Walmart will continue to raise its minimum wage over time. However, pay raises will vary based on where the store is based. Instead of hiking wages across the board, he said it will prioritize pay raises to employees with key roles or more tenure. McMillon wants to ensure Walmart jobs create a career path for workers at the company.

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“What we’re trying to do is put together the opportunity for our associates to climb a ladder,” he said. In fact, he himself started at Walmart as an hourly worker. He is joined by about 75% of store management who joined Walmart as hourly workers. 

More Pay Due to More Risk

Retail companies remain under pressure to pay employees more, as the Biden administration pushes for increased pay. Congress and the White House are looking at hiking the federal minimum wage to $15 from $7.25 per hour. Meanwhile, half of US states raised their minimum wage rates earlier this year. 

The pressure is also coming from workers, as they found themselves at the frontlines during the pandemic. With a sizable percentage of the population choosing to order online instead of braving the streets, more store and warehouse workers needed to remain at work. Workers needed to take an additional risk of contracting COVID-19 and spreading it to family members.

Watch the Reuters news video reporting that Walmart raises wages for 425,000 employees, and sees a sales slowdown in 2022:

Do you agree that frontline retail workers deserve to earn at least $15 per hour?

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Do you agree with Walmart’s strategy to raise its workers’ pay based on location? Or do you agree more to a unilateral $15 per hour increase like what its rivals did? Let us know what you think about increasing pay for frontline retail workers. Share your thoughts in the comment section below.

27 Comments

27 Comments

  • WJ SPENCER says:

    Workers should get paid what they’re worth and you will get better workers and better service

  • James says:

    Let Walmart raise wages which means prices of items will be raised at Walmart and Sams stores. That will let the good ole stores in communities open and reopen and will bring back good backyard gardens and farmers can bring back more farmer markets to America. Biden is doing his best to get America to depend on other countries such as China. Impeach Joe Biden he is a thief in sheep skin just look at his sons past criminal activity and Joe Biden was right beside him. Impeach Joe Biden. Recall Vote

  • Noah Warner says:

    I work at a Pizza Hut and do harder work than what a Walmart worker or any retail worker does. I get burned by oil and the oven, I lift very heavy things and hold them for a long time. I work for up to 11 hours in one day. I make 8.25 and am happy with it. Retail workers don’t need 15 an hour and giving it to them will decrease how much the dollar is worth and mess up my job. If 15 becomes the average then people who work hard will have to be cut because there isn’t enough money to make a profit and pay employees. If that doesn’t happen then companies will have to raise the prices of everything to be able to pay their employees. Therefore retail workers getting 15 would screw up the system and be horrible for the economy.

  • It sounds right to me James.

  • Anonymous says:

    No, its not right for the law to say give a raise..

  • Noah Warner says:

    Yessir. I’m down to get that racist, corrupt, senile old man out of office.

  • Rodney Steward says:

    WalMart has had the highest increase in their products over the past 2 years than any other store chain in the country, and this stupidity will raise their prices even higher and will definitely mean a lot less trips for our family as it already has.

  • Gmh says:

    Not sure hiw this will pan out. Expect to pay a lot more for your purchases, see a lot of jobs disappear, or both. I know for $15+/hour I would never have someone standing at the front door saying “welcome to walmart”.

  • gloria vincent says:

    I BELIEVE ALL EMPLOYEE DESERVE IF MIM WAGE IS 15 AN HOUR WITH PEFORANCE IF NOT UP TO STANDRD THEN LET THM GO

  • Robin Hernandez says:

    $15. to work at Walmart?? Then why go get a degree? It also mean more lay offs, hire less worker and higher prices. How does that help?

  • Charles says:

    I think it’s a great idea. Anything that helps drive Walmart under is good. Maybe then small mom and pop operations can come back. I try to spend local as much as possible and not support Chinese sponsored retail outlets. Piss on Walmart

  • Bob R says:

    So wally world raises there rate to 15 an hour. They have been pkanning this for a while now, as they replace there workers with automated check outs. Each of those self check machine’s don’t pay any wage no social security no tax’s. So they had 12 machine’s at the store I was at yesterday and 1 lane open with a person running it. The country is broke and the rich get richer

  • The REBEL says:

    I go into many businesses and from my experience, some of the workers are NOT worth $7.50 per hour.
    I blame much of this on a very POOR American educational system that brainwashes many people into thinking they are entitled to a high wage just because they breathe. With the so-called pandemic,
    America will produce that many more uneducated and undereducated freeloaders for the work force. Socialism has NEVER worked in ANY country. Why do the idiots that voted for JObama think it will work in what used to be the most productive country in the world??????

  • james says:

    I THINK WE SHOULD PAY EVERYONE 25.00 HR; MAYBE 50.00 HR./ HAS NOTHING TO DO ABOUT WHAT WE THINK!!! THE ECONOMY CAN NOT STAND THIS ! FROM $7.50 HR TO 15.00 / WHO GETS A 100% INCREASE ???? THIS IS THE PROBLEM W/GOVERMENT ; COMPLETELY OUT OF COMMON SENSE !! VOID OF INTELLIGENCE COMPLETELY; HOW MANY OF YOU WORKERS HAVE EVER GOTTEN A 100% RAISE? PEOPLE YOU HAVE A BRAIN USE IT !! THIS IS AS STUPID AS REPPARATIONS & HALF OF THE FAR LEFT AGENDA. PLEASE FOLKS ,IF YOU THINK THIS WILL NOT AFFECT YOU; WAIT,WATCH; THEN GET YOUR POCKETBOOK OUT!! SHEAR STUPIDITY TRUELY RUN AMUCK , I WANT TO KNOW , DO THESE PEOPLE W/THESE IDEAS LIVE IN FANTASY LAND ??? I WISH WE WERE ALL WEALTHY,LACK NOTHING COULD WALK IN LUV TOWARDS ONE ANOTHER;BUT IT AIN”T HAPPNIN. GET IN THE REAL WORLD !!!!!!!!!!! COMMON SENSE LIKE $2.00 GAL. GAS/ IT’S GONE FOR GOOD !!!!!!

  • John says:

    If they raise the wage this will eliminate more full time jobs and fewer employees. There will be fewer benefits for those who work their. Working entry level retail is not a career but a place to start.

  • William Phillips says:

    Thank you all for posting statements while using your brain at the same time. I enjoyed reading all posts and concur with what was written. If we continue on this lovey/feely path these fools have put us on, this country (that I love) will no longer exist. Also $15 is a back breaker.

  • Constance says:

    I have worked at that damn store for 8 years now. I work in a pharmacy I just barely make that. There’s a lot behind the scenes at that company

  • J. Salcixo G. says:

    All raising minimum wage does is raise prices on everything else/Cost of living…We the people are gonna be affected at fhe end of the day. We will be the ones paying more for goods and services accross the board.

  • Christine Crider says:

    Raise minimum wage raise prices and the unemployment percentage! Bigger government is what the bottom line is.!

  • The Mrs says:

    Slave labor went the way of slavery!! Stop minimizing these workers, they have families to feed like all of us do. I’m so glad that I live in the great state of California where workers are getting paid for what they are worth and what they need to infuse back into the ECONOMY. There were many “degreed” folks who ran to work at the manufacturing plant (NUMMI) in Fremont, ca -they where making better earnings, free healthcare and a health based work culture. $15.00 per hour is nothing compared to what they are actually WORTH.

  • Lois Hoegler says:

    Yes, they deserve a raise in pay. It is a hard job, I know because I have done every job in the Wal*Mart stores but do not forget the people that have been there for years. They could end up making less than a new hire. Now how is that fair?

  • JR says:

    Comparing the ridiculous cost of living in California to other lower cost of living areas is not a very good comparison. Used to be that people who didn’t think they made enough sought employment elsewhere, now they stay and cry and demand more. Walmart has zombies working there, and you can pay them $20 and hour and not get anymore productivity out of them. So many people in this country expect something for nothing. They lack the intelligence to understand that companies don’t eat the costs, but pass them along to the consumer. Pretty soon your making a good wage and living the same as you were before. Can anyone say wage-inflation?

  • RJ says:

    Higher wages, fewer workers, lower hours below eligibility of insurance, won’t improve waiting 15 minutes for customer service to find a key to unlock a case. Happens every time minimum wage is raised. Corporate America has replaced the black people who brought their rival black people to America to sell to the white cotton and tobacco growers. Corporate America is the new slave massa, yes massa,

  • Loyal Kuhn says:

    Fine, give the workers their blood money. I am on fixed income that pays only $2000 above the poverty level. When am I ever going to get a raise to even $10.00 per hour equivalent?

    The idiots that say that the current minimum wage isn’t enough to survive had better think twice if they look at senior and disabled person’s incomes.

    I got $1223.00 this month for Social Security. That is equivalent to $7.64 per hour. The Federal minimum wage is $7.25. Should I enjoy that while entry level wages are $15.00 per hour? All this increase in worker’s paychecks is strictly inflationary.

    Rental “affordable” apartments with Handicap access start at $650 a month – there goes 1/2 my income. Now what do I do without? I guess I don’t need a car or electricity.

  • Qretrumplican says:

    Some people need mental health help saying Biden is a thief when they are part of a cult where the dictator is the biggest thief in the world Trump signed a contract with the town in Florida where marlargo resort is that it will only be a resort limited use but now he says he is going to live there and not honor the contract or pay anything extra. This is a thief.

  • Ltompso says:

    Hell NO they don’t need a raise!! Most of them don’t do they’re job!! They never respond to help in a section of the store! They walk around talking on their phones all the time an talk to each other instead of doing their job!!! Plus if the wage goes up then the price will to! They don’t deserve it!

  • Tamara Olhava says:

    Companies need to be able to set their own prices as it never amounts to actual better wages when wages are forced up by government regulations because then the prices of goods go up equally.

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