Wal-Mart Pay Increase Decision Having Ripple Effect In Various Markets

Market analysts say the decision from Wal-Mart to increase 500,000 employees’ wages in April is going to have a ripple effect on many industries and states. Wal-Mart has agreed to increase the pay to $9 an hour, which is nearly $2 above the federal pay, and it’s already making an impact.

Retailers, based on the information from market experts, are having a difficult time keeping entry-level staff. . Doug McMillon, Wal-Mart CEO, said the pay increase was to give people a sense of ownership when it comes to their store. He said it’s the company’s belief that customers will benefit from the better store experience, leading to higher sales and returns down the road.

Since last year, Wal-Mart has had difficulty hiring and keeping staff after the GAP increased its minimum wages to $9 an hour. In 2015, GAP promised its wages would increase to $10 an hour. Wal-Mart has the highest staff turnover rate in the U.S.

The pay increase decision by Wal-Mart has been a major talking point among various retail giants such as TJ Maxx, that’s also pledged to increase the minimum wage for their employees – $9 an hour in June and $10 an hour in 2016.

Carol Meyrowitz, CEO for TJ Maxx, said the pay initiative is an integral aspect of the company’s strategies to bring in and keep talent to ensure its customers have a better shopping experience

Dollar General said it has no plans of following Wal-Mart’s initiative. Its CEO Bob Sasser said the company looks at the trends going on in the industry and will still compliant with state and federal laws. At this time, there are no plans being made to increase its minimum wage rates.

The decision from the Bentonville-based retailer has also had an effect on several states. For instance, New York state Governor Andrew Cuomo said waiting staff and other staff whose earnings are complemented by tips will see pay raise. He said, by the end of 2015, he’d like the minimum wage to be $7.50. Chicago is increasing its minimum wage to $10 an hour. By Federal Law, employers must pay at least $7.25 an hour, and it’s been that way since 2009. President Barack Obama would like it if Congress would increase the minimum wage to $10.10 an hour.

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Posted by on Mar 1 2015. Filed under Business, New. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

6 Comments for “Wal-Mart Pay Increase Decision Having Ripple Effect In Various Markets”

  1. Wages are not the only problem.
    Things have gotten so silly I could never work washing dishes if they ask for a resume to wash fing dishes. I just could not work for such a dillhole.

    And I dont mind washing dishes.

    And dishes was just an example of how Amerika has gone off the crazy rails.

  2. Don’t let Wal-Mart fool you. They are trying to Buy their way out of the Teamsters getting into their business. They have grown while putting Mom and Pop businesses Out of Business, gobbling up all the low end retail. They didn’t mind increasing their employees Health Care Costs over 35 per cent last year. They don’t mind working people less than 40 hrs. When the employees started staging serious protests, and talking Unionization, they want to be everyone’s friend, and give everyone s raise. The Employees need to wise up, and Unionize. It’s the only way they can negotiate a better future. Don’t let the raise buy you off. Tgey took that already, in Health Care premiums. Try checking out, at Wal-Mart, there are never enough checkers. They would have people working for slave wages, if they could get awsy with it. Remember, the people that mske the products, on their shelves are making slave wages. Wal-Mart is not our friend. The workers need the Teamsters.

  3. Im with you thecrud!! They want a freaking college degree for entry level jobs and the same corporations have chinese ppl making the stuff on machines for 1$ hr with no grade school America is becoming a huge joke

  4. I honesty belive that since the Countrys Economy tanked in 2007, with double and sometimes tripling! and the slowdown in aquiering a 2x baseline of our retail averages, it would have been safe to assume that the fed. Would maneuver Retail (on the QT.) to increase our National minimum Wage.
    And to think not long ago the private sectors out there would have all ready started the push with a well known fast food endeavor to strike for higher bottom line wages starting with a break-in work World Burger buiss.(New York) which was originally pushed as an actual employee strike.
    Stay strong U.S.A.! FINANCE the MIDDLE CLASS!!!

  5. Wages are not the only problem.
    There was no locker at my Wal-Mart night job.
    Had to leave my coat and boots and bags and wallet somewhere on the floor in some dirty corner, hoping no one would steal. Had to carry my own working shoes on the bus, no place to leave them at work. They told me a locker would be an unnecessary expense. Had to punch in and out at every break. Quit on my second day. Good riddance.

  6. To be frank as a new immigrant, I was shocked at the wage structure for workers in Wal-Mart and other like industries. In fact in the USA there is no legislation that regulates wages or protects the worker. You will find better legislation and human rights protection in 3rd world countries. I thought slavery has been gone a long time ago. I can say for certain when looking at all the companies in the USA, slavery called by a different name exists.
    Americans don’t know better. Outside, capitalism-there are courts that decide what the wages should be in accordance with the cost of living. Today, a Wal-Mart worker who works in DC cannot afford to stay near or in DC. They will travel many miles to come to work. Many workers who can’t make it because of snow, don get paid-is this not backward? In many countries-workers get maternity benefits, overtime, annual leave, insurance paid by the company for medical. I am SHOCKED HOW BACKWARD THINGS ARE IN THE USA!!!!
    Termination at will is “illegal” outside the USA. If you terminate and employee, the latter must have committed an act of misconduct-which the employer must be able to prove in an Employment Court or justify the termination on the fact that the company is suffering financial difficulties and cannot carry employees (retrenchment or redundancy) .If the company cannot justify its termination, it becomes a dismissal and the employees may be awarded damaged or be REINSTATED in his former employment.
    I think workers in the USA work very, very hard and need to have the employments regulated. There should be stronger UNIONS-(Corporations through lobbyists have destroyed unionism in this country), workers should protest against employers and go on strike for better terms and conditions-Congress must enact laws for American employees.
    Its Laughable that the US demands the countries comply with human rights when at home, US workers are treated like animals. Today I work 6am to 2pm, tomorrow I work at 2pm to 10pm and then that work schedule changes. How can there be any quality of life for workers and their families? The pay is pathetic-$15.00 per hour is realistic with full benefits! How much money is enough for corporations-this is pathetic!

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