Walmart News: US Retail Giant Increases Starting Wage At Roughly 500 Locations
Retail giant Walmart will increase its starting wage from $11 to $12 in roughly 500 stores in order to test out a new workplace model and attract new employees. The company has approximately 4,700 stores across the U.S.
Walmart wants its workers to develop broader retail skills as part of a “team approach.” Employees will be trained to be more independent from their managers and will be given more responsibilities, as the company hopes to improve its customer service.
As a part of the new workplace model, the company will end roles such as assistant manager and customer service manager. Instead, the retailer will unveil new positions such as academy trainer and team lead.
“Our associates are enjoying learning new skills and working on small teams within their store,” Drew Holler, senior vice president of U.S. People and Associate Experience at Walmart said in an emailed statement to CNBC.
Walmart has been frequently criticized for low wages, but political pressure has forced the company to change its tune. During an annual Walmart shareholders meeting in June, Democratic presidential candidate and Vermont Sen. Bernie Sanders attended a labor rally, where he said Walmart workers are tired of being paid “starvation wages.”
In response to Sen. Sanders’ comments, Walmart CEO Doug McMillon has said that the federal minimum wage is “too low.”
Walmart increased its starting wage to $11 in 2018, but the company still falls behind its competitors, such as Target and Costco. Walmart has also been criticized for punishing employees for taking sick days, but the company has revamped its sick-leave policy.
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