On the same day, the company also announced the closure of 63 Sam’s Club stores across the country.
Walmart, one of the largest discount retailers in the nation, revealed plans to increase starting wages for hourly associates, broaden parental leave policies and adoption benefits for parents, and offer one-time bonuses to over 1 million hourly employees. Executives for Walmart cited Congress’ recently passed tax reform bill as one of the driving forces behind the sweeping changes to their employee business model.
Excited to share some news today! We’re raising our starting wage for all hourly associates in the U.S., expanding benefits & offering a one-time bonus! ? Learn more from CEO Doug McMillon: https://t.co/vgBJ1KRLB6 pic.twitter.com/pPEdZCYSr1
— Walmart (@Walmart) January 11, 2018
The company announced that all hourly employees in the U.S. making $10 an hour can expect a $1 increase in pay starting on Feb. 17. Currently, the federal minimum wage is $7.25 an hour. Walmart, which employs about 2.3 million people across the globe, also said it is closing 63 Sam’s Club stores, resulting in thousands of layoffs.
After a thorough review of our existing portfolio, we’ve decided to close a series of clubs and better align our locations with our strategy. Closing clubs is never easy and we’re committed to working with impacted members and associates through this transition.
— Sam's Club (@SamsClub) January 11, 2018
Walmart also shared big news impacting parents-to-be and caregivers: a plan for expanded maternity and parental leave benefits.
The new policy provides full-time hourly associates and salaried employees with 10 weeks of paid maternity leave and six weeks of paid parental leave. The benefits also extend to those team members who adopt children, and Walmart noted they will contribute $5,000 toward the overall cost of the adoption, including adoption agency fees, translation fees, and legal or court costs.
“Families are a priority to us, and connecting with and caring for a new family member is obviously important,” CEO Doug McMillion said in a news release.
In the past, Walmart only offered paid family leave to salaried workers and half-pay leave to hourly employees.
Walmart will also give one-time bonuses to full-time and part-time hourly employees in the U.S. based on how long they’ve been with the company. The mass-retailer said employees who have been with the company for…
- two to four years will receive $250;
- five to nine years will get $300;
- 10 to 14 years will receive $400;
- 15 to 19 years will get $750;
- and 20 years or more will receive $1,000.
