Bentonville, AR. Wal-Mart Raises Wages Under Public Pressure
Wal-Mart's CEO Doug McMillon (McMillion?)today announced in a video-taped message to workers that wages for about 40% of its workforce will rise slowly. The wage hike is hardly what workers have been seeking, and will not affect six out of 10 workers.
According to Wal-Mart, "Approximately 500,000 full-time and part-time associates at Walmart U.S. stores and Sam's Clubs will receive pay raises in the first half of the current fiscal year. Current and future associates will benefit from this initiative, which ensures that Walmart hourly associates earn at least $1.75 above today's federal minimum wage, or $9.00 per hour, in April. The following year, by Feb. 1, 2016, current associates will earn at least $10.00 per hour.
Here is the text of Wal-Mart's letter to workers:
"As many of you know, I'm really proud to have been a Walmart associate for a long time. This company has given so many of us opportunities beyond our wildest dreams. We joined Walmart because we wanted a job but found much more than that. This company is a really special place.
One of the reasons we've had some success is that we've known that every person, every voice, every idea has potential. You've heard us say things like our secret to success is that we're all working together and that "our people make the difference." While that phrase started as a meeting theme in 1979, it became a way of thinking. It's what we believe. It's what I believe. Our actions must match our beliefs. So today, we're announcing a series of important changes that demonstrate our commitment to you, our associates.
After all, we're all associates. We have different roles at different times in our career and every one of them is important. Today's cashiers will be tomorrow's store or club managers. Today's managers are tomorrow's vice presidents. Tomorrow's CEO will almost definitely come from inside our company. During our recent Walmart U.S. year beginning meeting, I asked all of those in the arena, more than 7,000 people, to stand if they started their Walmart career in an hourly role. It felt like almost everyone stood up. It was an emotional moment. It made the word opportunity real. In fact, our statistics show that about 75% of our U.S. management teams began in an hourly role.
Every one of us is writing our own career story, and there are some powerful stories coming to life right before our eyes. So, how do we make sure that each one of you has the same opportunity, or better, as those that came before?
It starts by making sure we're setting you up for success.
We need great store managers and assistant managers who know what they're doing, care about you and know how to teach effectively. We need stores with the right tools and environment for you to thrive. I think you feel the same way. When I'm out in stores today, one thing I hear from associates at all levels is that you want to be freed up and empowered to serve your customers better. You also want to know that there's opportunity here and that your hard work will be recognized and rewarded. Our business is pretty simple when we boil it all down; sometimes we make it too complicated.
I've seen us change a lot over the years. We're always trying to do the right thing and build a stronger business. We frequently get it right but sometimes we don't. When we don't, we adjust. In recent years we've had tough economic environments, a rapidly growing company, and fundamental shifts in how customers are shopping. We also made a few changes aimed at productivity and efficiency that undermined the feeling of ownership some of you have for your business. When we take a step back, it's clear to me that one of our highest priorities must be to invest more in our people this year.
Today, we're announcing a package of changes in Walmart U.S. that will kick off a new approach to our jobs. We're pursuing comprehensive changes to our hiring, training, compensation, and scheduling programs, as well as to our store structure, and these changes will be sustainable over the long term.
One of the most immediate changes is that we'll raise our starting pay, and we'll provide opportunities for further raises based on performance. For our current associates, we'll start by raising our entry wage to at least $9 an hour in April, and, by February of next year, all current associates will earn at least $10 an hour. I'm also excited about an innovative program we're launching for future associates that will allow you to join Walmart at $9 an hour or more next year, receive skills-based training for six months, and then be guaranteed at least $10 an hour upon successful completion of that program. We're also strengthening our department manager roles and will raise the starting wage for some of these positions to at least $13 an hour this summer and at least $15 an hour early next year. There will be no better place in retail to learn, grow, and build a career than Walmart.
Sam's Club is also making some important changes today, specifically to starting wages. Around the world, we operate with the same set of beliefs, and we'll continue to share what we learn across countries. Every associate matters.
As important as a starting wage is, what's even more important is opportunity, and we'll continue to provide that ladder that any of you can climb. If you work hard, develop new skills and care for others, there should be no limit to what you can do here. That's what makes this place special. I've seen it. I've lived it. And I want nothing more than for every Walmart associate today to feel that same connection to the company that I feel and to have the same opportunities I've had. Let's work together to serve our customers, grow our company, and take care of one another.
Thanks for all you do. You really do make the difference."
What you can do: Readers should call Wal-Mart's Investor Relations number at 1-479-277-1498 and leave this message: "It's time to raise your frontline workers to $15 per hour. Better paid workers will increase productivity, which will increase sales, which will raise profitability for the company. Don't leave out 60% of your workforce. Your cashiers and clerks should be paid what you plan to pay your department managers by next year: $15 per hour--which is still just $25,000 a year. Not much to brag about. Invest in your people!"