https://www.nbcnews.com/business/bu...gher-walmart-announces-raises-bonuses-n836801
Walmart announces raises and bonuses — then closes some stores
by MARTHA C. WHITE
The goodwill generated by that announcement, however, was quickly dampened by reports that Walmart would be closing 63 Sam’s Club stores across the country — some with no advance notice.
Walmart president and CEO Doug McMillon credited the recently passed corporate tax cuts for the salary hikes, saying, “Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.”
For Facts Sake: Benefits of Trump's tax law 6:24
McMillon said Walmart will give onetime bonuses to hourly workers who already earn more than $11. The amount will be based on employees’ length of service with the company, starting at $200 and going up to $1,000 for workers with tenures of 20 years or longer.
Walmart said the wage increases will cost $300 million, and the bonuses will cost $400 million.
Employees restock shelves of school supplies at a Wal-Mart Stores Inc. location in Burbank, California on Aug. 8, 2017. Patrick T. Fallon / Bloomberg via Getty Images file
“The new law will create some financial benefit for the company,” Walmart said in its statement, saying it was “early in the process of assessing potential additional investments,” and that it would provide additional details next month when it announces quarterly earnings.
Since the passage of the Tax Cuts and Jobs Act, a number of companies announced employee bonuses, including NBC News' parent company Comcast, plus AT&T, JetBlue and a host of financial institutions including Bank of America and Wells Fargo.
Policymakers are divided on how much of this largesse is due to the tax cuts, and how much can be attributed to a tightening labor market and low unemployment rate.
“Walmart has made similar announcements in the recent past … even when no tax reform could have affected its decision,” said Gary Burtless, an economist with the Brookings Institution.
3h
YourMCAdmin@YourMCAdmin
Wow, a whole lot of @SamsClub locations shut down today while giving 0 notice to workers. That sounds like the management team alright. They are heartless people. I feel terrible for the thousands of people who just lost their jobs.
https://twitter.com/SamsClub/status/951505233359921152
Sam's Club
✔@SamsClub
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.
12:25 PM - Jan 11, 2018
Twitter Ads info and privacy
Ken Perkins, founder of research firm Retail Metrics, suggested that the Sam’s Club closings were a misstep, saying, “The store closures with no notice is a bit out of character for Walmart and not the best way to treat your employees."
Perkins estimated that Walmart could save as much as $2 billion in taxes this year under the new plan.
Walmart announces raises and bonuses — then closes some stores
by MARTHA C. WHITE
- Walmart announced on Thursday it would raise starting wages for hourly employees to $11 an hour beginning next month, and will give some of its hourly workers one-time bonuses that could be as high as $1,000. In total, more than a million employees could benefit, the company said.
The goodwill generated by that announcement, however, was quickly dampened by reports that Walmart would be closing 63 Sam’s Club stores across the country — some with no advance notice.
Walmart president and CEO Doug McMillon credited the recently passed corporate tax cuts for the salary hikes, saying, “Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.”
For Facts Sake: Benefits of Trump's tax law 6:24
McMillon said Walmart will give onetime bonuses to hourly workers who already earn more than $11. The amount will be based on employees’ length of service with the company, starting at $200 and going up to $1,000 for workers with tenures of 20 years or longer.
Walmart said the wage increases will cost $300 million, and the bonuses will cost $400 million.
Employees restock shelves of school supplies at a Wal-Mart Stores Inc. location in Burbank, California on Aug. 8, 2017. Patrick T. Fallon / Bloomberg via Getty Images file
“The new law will create some financial benefit for the company,” Walmart said in its statement, saying it was “early in the process of assessing potential additional investments,” and that it would provide additional details next month when it announces quarterly earnings.
Since the passage of the Tax Cuts and Jobs Act, a number of companies announced employee bonuses, including NBC News' parent company Comcast, plus AT&T, JetBlue and a host of financial institutions including Bank of America and Wells Fargo.
Policymakers are divided on how much of this largesse is due to the tax cuts, and how much can be attributed to a tightening labor market and low unemployment rate.
“Walmart has made similar announcements in the recent past … even when no tax reform could have affected its decision,” said Gary Burtless, an economist with the Brookings Institution.
3h
YourMCAdmin@YourMCAdminWow, a whole lot of @SamsClub locations shut down today while giving 0 notice to workers. That sounds like the management team alright. They are heartless people. I feel terrible for the thousands of people who just lost their jobs.
https://twitter.com/SamsClub/status/951505233359921152
Sam's Club✔@SamsClub
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.
12:25 PM - Jan 11, 2018
Twitter Ads info and privacy
Ken Perkins, founder of research firm Retail Metrics, suggested that the Sam’s Club closings were a misstep, saying, “The store closures with no notice is a bit out of character for Walmart and not the best way to treat your employees."
Perkins estimated that Walmart could save as much as $2 billion in taxes this year under the new plan.
