Walmart CEO Doug McMillon announced Feb. 19 that the company will raise its 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.” Federal minimum wage is $7.25 an hour. In a video to employees, he said, “We’re always trying to do the right thing and build a stronger business. We frequently get it right but sometimes we don’t.”
Workers have sued Walmart and certain Walmart affiliates for paying less than minimum wage, wage theft, forced overtime, gender discrimination, abusive scheduling practices, and retaliation against workers who tried to join unions. In an announcement of 4th quarter earnings, the company noted that a “Wage and Hour Litigation Matter” had reduced its earnings per share by .05 percent, both for the quarter and for all of 2014. That was a greater percentage than the cost of closing underperforming stores in Japan, .03 percent.
“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,” said McMillon. He said he also wants to create greater opportunities for workers, via better training and career ladders. Managers will offer more consistent schedules and better notice of schedules.
