More Than One Million Walmart Associates Receive Pay Increase in 2016
January 20 2016 - 1:30PM
Business Wire
2016 action lifts average hourly full-time rate
to $13.38; New paid time off plan gives full- and part-time
associates greater control
More than 1.2 million Walmart U.S. and Sam’s Club associates
will receive a pay increase under the second phase of the company’s
two-year, $2.7 billion investment in workers. The pay raise, which
takes effect Feb. 20, will be one of the largest single-day,
private-sector pay increases ever. As an industry leader for
competitive pay and benefits, Walmart is also implementing new
short-term disability and simplified paid time off (PTO) programs.
The combined changes will expand support for associates dealing
with extended health issues and provide associates greater control
over their paid time away from work.
“We are committed to investing in our associates and to
continuing to simplify our business. When we do so, there is no
limit to what our associates can accomplish,” said Judith McKenna,
chief operating officer for Walmart U.S. “Our customers and
associates are noticing a difference. We’re seeing strong increases
in both customer experience and associate engagement scores. Five
straight quarters of positive comps in our U.S. business is just
one example of how helping our associates grow and succeed helps
the company do the same.”
This associate investment was taken into account in the
financial outlook discussed last October at the company’s annual
analyst meeting. Today’s announcement addresses the details for
associates. Specifics are provided below.
WAGES
A job at Walmart means competitive pay for all associates. Every
year, the company promotes 160,000 associates to jobs with higher
pay and more responsibility and last year Walmart converted more
than 150,000 associates from part-time to full-time. On Feb. 20,
2016, the company will implement one of the largest single-day,
private-sector pay increases ever, benefiting more than 1.1 million
hourly associates. The changes taking effect include:
- All associates hired before Jan. 1,
2016 will earn at least $10/hour.
- New entry-level associates hired after
Jan. 1 will continue to start at $9/hour and will move to at least
$10/hour after successfully completing the company’s new retail
skills and training program known as Pathways.
- Associates already earning more than
$10/hour will receive an annual pay increase in February
rather than waiting until their anniversary date.
- Walmart is raising the starting rate
of its non-entry level hourly pay bands. Anyone earning below
the new minimum will automatically move up to the new minimum.
- Associates at or above their pay band
maximum will receive a one-time lump sum payment equal to 2
percent of their annual pay.
- When these changes go into effect,
Walmart’s average full-time hourly wage will be $13.38/hour.
The average part-time hourly wage will be $10.58/hour.
PTO
Walmart and Sam’s Club are launching a new, simplified PTO
policy, effective March 5, 2016 that will streamline paid vacation,
sick time, personal time and holiday time into one category. And
the one-day wait to use sick time will be eliminated, as promised.
When the plan rolls out in March, both full- and part-time
associates will earn PTO based on tenure and hours worked. The plan
includes:
- No waiting. PTO is available to
use as soon as it’s earned and can be used for almost any
reason.
- Full-time hourly associates can carry
over up to 80 hours (48 hours for part time) of PTO from year to
year.
- Any unused hours at the end of the year
above the 80 hour and 48 hour limits will automatically be paid
to hourly associates in the first paycheck every February.
- Associates will also keep any
existing and accrued sick and personal time. These balances
will be kept separate, to be used for certain circumstances once
all available PTO is used.
ADDITIONAL BENEFITS
In addition to PTO, Walmart is providing a new, Short Term
Disability Basic plan at no cost to full-time hourly
associates. Effective Jan. 1, 2016, the plan offers more financial
protection to workers who need to be away from work for an extended
period of time due to their own medical needs such as an illness,
injury or having a baby. The basic plan will pay 50 percent of a
worker’s average weekly wage, up to $200, for up to 26 weeks.
Walmart is also offering a Short Term Disability Enhanced
plan, which costs less than the company’s prior voluntary plan
and provides more coverage. Associates would receive up to 60
percent of their average weekly wage with no weekly maximum for up
to 26 weeks.
Walmart’s associate investment is about more than wages and
benefits: it is designed to provide associates the tools they need
to grow with the company and provide great customer service. The
company is also creating new training programs, which will create
clear career paths from entry-level positions to jobs with more
responsibility and higher pay.
About Walmart
Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world
save money and live better - anytime and anywhere - in retail
stores, online, and through their mobile devices. Each week, nearly
260 million customers and members visit our more than 11,600 stores
under 72 banners in 28 countries and e-commerce websites in 11
countries. With fiscal year 2015 revenue of $485.7 billion, Walmart
employs approximately 2.2 million associates worldwide. Walmart
continues to be a leader in sustainability, corporate philanthropy
and employment opportunity. Additional information about Walmart
can be found by visiting http://corporate.walmart.com on Facebook
at http://facebook.com/walmart and on Twitter at
http://twitter.com/walmart.
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WalmartKory Lundberg, 800-331-0085
Walmart (NYSE:WMT)
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