By fixing its pay extends to the tax break it anticipates to receive in commensurate with the large companies, Walmart offered support for assertions by the Trump administrations and Republicans in Congress that the novel tax law will interest both the factions, the wealthy and the working class Americans.
The nation's largest retailer said it would increase its minimum wage to $11 an hour starting in February. The increase is expected to lift average hourly pay for the retailer's full-time USA store employees to $14.50 from $13.85, according to The Wall Street Journal.
Walmart announced Thursday that it will give employees a one-time bonus of up to $1,000. Boeing, AT&T, Wells Fargo, and Comcast have all said they were either investing more in the United States or offering perks to employees, from bonuses to minimum wage boosts to other investments in employee development.
Capital One is reported to to be raising their minimum wage to $15/hour.
The airline said on January 2 that it would give 130,000 employees a $1,000 bonus because of the new tax law.
And it is very good news.
Walmart (NYSE:WMT), the nation's largest employer, with 1.5 million US workers will allow the majority of those employees, 1 million, to share in the benefits of the largest sweeping tax reform in three decades. President Donald Trump and his fellow Republicans have argued that the corporate tax cut will benefit workers and lead to more investment by US companies. This is good news for many workers who have struggled to make ends meet in a weak economy. The economy is doing well, and unemployment is at a low 4.1%.
"The labor market will continue to tighten in 2018 with the economy generating about 150,000 jobs per month as firms find it increasingly more hard to obtain qualified individuals to fill open positions", according to RSM US LLP Chief Economist Joseph Brusuelas in the firm's most recent "The Real Economy" report.
"A lot of raises are coming", Alan Cole, formerly an economist at the Tax Foundation said on Twitter. Democratic opponents of the tax cut sneer that it was a "giveaway" to corporate interests, disguised as a reform. Target, like Walmart, boosted wages late past year to retain cashiers and stockers. In Washington, D.C., for example, the base wage is $11.50, and will go up another dollar later this year.
Other states and cities are on track to bump up their wages to $15 by 2020 or soon after.
Walmart's attempt to become a more attractive place for workers also coincides with its war against online retail juggernaut Amazon AMZN. As of December, the average pay for full-time workers was $13 an hour.
Shares of Walmart closed up 0.3 per cent at US$100.02. It's also worth putting those actual benefits in context.
Around 50 of those stores will be shut permanently after a review of profitability and up to 12 more will be shut and reopened as e-commerce warehouses, the person said. "There was this advocacy group called the RATE Coalition that has for many years been lobbying and advocating for a significant reduction in the corporate tax rate". Employees that have anywhere from two to four years of uninterrupted service with the company are eligible for a bonus of $250, while those who have worked for the company for five to nine consistent years are eligible for a $300 bonus.
And it's not all rosy news for the company's employees. On the same day the company trumpeted its pay rise, it revealed the closure of some members-only Sam's Club stores.
But the Wal-Mart Stores Inc announcement, its third boost in entry level wages in as many years, is a possible sign wage pressure is building in general, as gains filter down to the lowest-paid jobs and the least-educated workers.
But the company said in a statement that affected Sam's Club employees will still be able to collect the bonuses Walmart just announced.