After Trump Tax Cuts, Walmart Raises Wages, Gives Bonuses, Helps with Adoptions

Walmart giving employees $1000 bonuses, raising minimum wage

(The company now offers six to eight weeks of partially paid maternity leave and no parental leave.) The Bentonville, Arkansas-based company will also offer adoption benefits for $5,000 per child to full-time hourly and salaried employees. And New York, Arizona, Colorado, Maine and OR will all reach that level next year, as efforts at the state level to boost livelihoods have gained steam. The shares were little changed on Thursday, trading at $99.59. Retailers, in general, have one of the highest average effective tax rates because a majority of their operations are in the US. Costco Wholesale Corp. and other retail chains like TJX Cos. have also raised wages in recent years.

The wage increase announced Thursday by Walmart benefits all hourly USA workers within its stores, Sam's Clubs, eCommerce, logistics and home office. In the previous economic uptick, wage growth peaked in December 2006 at 4.2 percent on a year-over-year basis. For Wal-Mart, the payouts will result in a one-time charge that will be taken in the fourth quarter of the current year.

While the new law will create some financial benefit for the company, Walmart is early in the process of assessing potential additional investments.

"We are early in the stages of assessing the opportunities tax reform creates for us to invest in our customers and associates and to further strengthen our business, all of which should benefit our shareholders", Walmart president and CEO Doug McMillon said in a statement. The strategy paid off over the holidays: Target's store associates fulfilled 70% of its online sales, which helped to dramatically boost online sales compared to a year ago.

The one-time bonus Walmart announced this morning amounts to just over 2 percent of the total value of the tax cut to the company.

The one-time bonuses will range from $200 to $1,000, depending on how long workers have been with Wal-Mart.

An expanded parental and maternity leave policy, providing full-time hourly associates in the USA with 10 weeks of paid maternity leave and six weeks of paid parental leave.

With this move, the world's largest private employer has scored big points with Republican politicians, who now have a talking point for the campaign trail, and maybe also from shoppers who see its wage increase as socially responsible. Parents who adopt kids will get the same benefit, along with $5,000 to help cover the costs. Additionally, many states have increased their minimum wage above $10. That irks some economists, who say the federal level has failed to keep up with inflation and productivity. About a dozen banks have said they will raise their minimum wages.

Related News:

Most liked

Google buys a firm that turns screens into speakers
According to a report from Bloomberg , Google made another purchase about a month before this for UK-based company Redux . The system by Cambridge-based Redux could eliminate the need for small speakers to be used in mobile phones.

Disgraced Producer Harvey Weinstein Gets Slap In The Face At Arizona Restaurant
While the manager claimed that neither attempted backhand hit Weinstein, in the video, two clear slaps can be heard. As Weinstein makes an attempt to leave, he notices that he's being filmed by someone else in the restaurant.

SpaceX Aims to Test Fire Falcon Heavy This Week
SpaceX said a review of the data revealed a successful launch and there's no reason to suspect the Falcon 9 performed otherwise. Commentary during a webcast of the launch appeared to confirm that the fairings housing the payload were successfully deployed.

John Dickerson named new co-host of 'CBS This Morning'
Rhodes said in his memo that he'll be in Washington later this week to begin the process of finding Dickerson's replacement there. According to a release from CBS, Dickerson will join Gayle King and Norah O'Donnell on CBS This Morning on Wednesday.