Business

Half-Million of Wal-Mart’s US Workers to Get Pay Raises

Published

10 years ago

February 20, 2015

ANNE D’INNOCENZIO, AP Retail Writer

BENTONVILLE, Ark. (AP) — Wal-Mart Stores Inc. is hoping its decision to boost workers’ paychecks will help it boost its bottom line.

The nation’s largest private employer announced on Thursday that it’s giving a raise to about half-million U.S. workers as part of a $1 billion investment that includes changes that Wal-Mart says are aimed at giving workers more opportunities for advancement and more consistent schedules.

The changes come as the company has faced increased pressure to pay its hourly employees more. But Wal-Mart, which has been criticized for its messy stores and poor customer service, says it’s also focusing on recruiting and retaining better workers so that it can improve its business.

The company has struggled with disappointing sales for most of the past two years, even though it posted better-than-expected results during the most recent holiday season. Wal-Mart hopes that taking better care of its workers will lead to better-run stores, more satisfied customers and an increase in sales and profits.

“What’s driving us is we want to create a great store experience for customers and do that by investing in our own people,” Doug McMillon, Wal-Mart’s CEO, told The Associated Press during an interview two days ahead of the wage announcement at the company’s headquarters in Bentonville, Arkansas. “A better store experience results in happier customers, resulting in stronger sales.”

Wal-Mart’s changes indicate that it is moving beyond relying on its hallmark everyday low prices to make it stand out in an increasingly crowded and competitive retail landscape and moving toward investing in its workers. The company had previously cut back on staffing in stores two years ago in an effort to be more efficient.

But the moves have backfired. Morale among workers was hurt at stores, employees weren’t able to quickly restock items on shelves and shoppers came to expect unkempt stores. Wal-Mart’s U.S. business, which accounts for 60 percent of its annual net sales of $482 billion, had declines or little growth for eight straight quarters before the latest holiday period. And an annual survey by the American Customer Satisfaction Index, which polled 70,000 customers, found that Wal-Mart’s customer satisfaction fell to the lowest level since 2007.

“The stores are understaffed,” said Anthony Rodriguez, who has been pulled to do different jobs from being a bike assembler to sales floor associate at the Wal-Mart Rosemead, California, because of low staffing. “Often, there is nobody in a department. A lot of customers get upset.”

McMillon, whose first job at Wal-Mart was an hourly position loading trucks during college, acknowledged that some measures the company took to cut staff and other moves to increase productivity may have gone “too far.” But he says Wal-Mart has learned from its mistakes.

“We want to make it really clear that working at Wal-Mart is a great opportunity,” he said. “Time will tell what the significance of the decisions will be.”

In focusing on investing in workers, Wal-Mart follows other big retailers that have announced plans to increase pay recently as the national debate over raising the federal minimum wage has reached a crescendo. Swedish home furnishings retailer Ikea this year gave thousands of workers at its U.S. division a 17 percent average raise to $10.76 an hour. And clothing chain Gap Inc. raised its minimum hourly wage to $9 last year and to $10 this year.

But Wal-Mart’s changes are likely to have a bigger impact because it employs 1.3 million U.S. workers. Among the changes, Wal-Mart is raising entry level wages to at least $9 an hour in April and to at least $10 an hour by February of next year. That includes the less than 6,000 workers who make the federal minimum wage.

With the changes, the average full-time wage at Wal-Mart stores will be $13 an hour, up from $12.85. For part-time workers, the hourly wage will be $10, up from $9.48.

That’s below the $14.65 average that hourly retail workers in a non-supervisory role earn, according to government data that includes people who work at auto dealers and other outlets that would likely pay more than discounters like Wal-Mart. But it’s above the $9.93 average hourly pay for cashiers and low level retail sales staff, according to Hay Group’s survey of 140 retailers with annual sales of $500 million.

In addition to raises, Wal-Mart is also doing things like offering hands-on training for new workers in areas including teamwork, merchandising, retail fundamentals and communications. It’s also rolling out a program that offers some workers fixed schedules so they can be able to choose the same hours each week. The program is being tested in Wichita, Kansas.

Some industry watchers say that Wal-Mart’s move to treat workers better will lead to sales growth. “There’s a nice connection to highly satisfied customers and happy employees,” said David VanAmburg, managing director of the American Customer Satisfaction Index. “Employees who are better paid and treated better by management tend to go the extra mile for the customer.”

But some employees are less optimistic about what the moves will do for morale.

Rodriguez, the California Wal-Mart employee who has participated in protests at Wal-Mart, says he’s happy to get a bump up from $9.40 to $10 an hour next year. He’s also encouraged about the new training. But the 26-year old says the money isn’t enough to support his fiancée and 2-year old son.

Emily Wells, a leader of OUR Walmart, a union-backed group of Wal-Mart workers that has been pressing the discounter to start its hourly wages at $15 and increase hours, agrees.

She said she’s pleased that the company is addressing issues about pay and erratic scheduling, but Wells, who makes $9.50 an hour and is scheduled to work only 26 hours per week, said the plan comes up short.

“Wal-Mart can afford to provide the good jobs that Americans need – and that means $15 an hour, full-time, consistent hours and respect for our hard work,” she said.

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Follow Anne D’Innocenzio at — https://twitter.com/adinnocenzio

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BWOPA Honors Black Leadership and Legacy at 2024 Ella Hill Hutch Awards Dinner

On Dec. 5, BWOPA held its Annual Ella Hill Hutch Awards Ceremony, at the Fairmont Claremont Hotel in the Oakland/Berkeley Hills. At the event, the group comprised of Black women from various professional backgrounds, honored distinguished local and state leaders whose contributions have shaped civic engagement and advanced critical social issues impacting Black communities.

Published

12 hours ago

December 18, 2024

Oakland Post

L-R: BWOPA State Executive Director LaNiece Jones; State Asm. Mia Bonta; BWOPA 2024 Man of The Year/Urban League SFBA CEO Ken Maxey; BWOPA State President Hon. Dezie Woods-Jones; State Senator Lola Smallwood-Cuevas; Rowena Brown, Oakland Councilmember At-Large, Elect; BWOPA State Regional Director Vashone Huff. Courtesy photo.

By Oakland Post Staff

Black Women Organized for Political Action (BWOPA) is a statewide non-profit advocacy and membership organization committed to solving problems affecting Black Californians.

On Dec. 5, BWOPA held its Annual Ella Hill Hutch Awards Ceremony, at the Fairmont Claremont Hotel in the Oakland/Berkeley Hills.

At the event, the group comprised of Black women from various professional backgrounds, honored distinguished local and state leaders whose contributions have shaped civic engagement and advanced critical social issues impacting Black communities.

The evening was hosted by Dr. Shawna Charles, founder of The Charles Communications Group (CCG) headquartered in Los Angeles. Charles served as mistress of ceremonies.

With a track record of elevating voices and empowering communities, Charles’ leadership and insight brought a certain dynamism to the celebration.

“Each year, this event not only celebrates the enduring legacy of our beloved BWOPA founding member, Ella Hill Hutch, but also reaffirms and amplifies our unwavering commitment to building and sustaining Black political power across California,” said Dezie Woods-Jones, BWOPA founding member and State president.

“Ella Hill Hutch’s trailblazing leadership continues to inspire us as we forge ahead, empowering Black women to lead, advocate, and shape a more equitable future for all,” added Woods-Jones.

This year’s event introduced the DWJ Rising Star Award, honoring young leaders like Solano County Board Supervisors-elect Cassandra James, Danielle Motley-Lewis, Naomi Waters and newly elected State Assemblymember elect Rhodesia Ransom (D-Stockton).

According to organizers, the awardees all exemplify “the next generation of changemakers.”

Other awardees included:

Lifetime Achievement Awardees: Congresswoman Barbara Lee (D-CA-12) and Alameda County Supervisor Keith Carson
Man of the Year: Kenneth Maxey, CEO of the Greater SF Bay Area Urban League
President’s Corporate Award: Yvette Radford, Kaiser Permanente
In the Spirit of Ella State and Chapter Awards: Dr. Carolyn Greene, Dr. Marcella K. Smith, Dr. Carolyn Drake, Tinisch Hollins, Jackie Jones, Gloria Burgess Johnson, Tamika L’Ecluse, Ellen Nash, Betty Reid Soskin, and Ay’Anna Moody.

BWOPA also celebrated local champions across its chapters, including leaders in voter education, healthcare, criminal justice reform, and community advocacy.

In a statement, BWOPA said, “Honoring Ella Hill Hutch’s legacy, BWOPA recognizes her pioneering efforts as the first Black woman elected to the San Francisco Board of Supervisors. Her tireless work amplifying underrepresented voices continues to inspire BWOPA’s mission to build Black political power across California.”

“We extend our heartfelt thanks to our members, partners and allies who believe in BWOPA’s vision to invest in building power for Black women’s leadership,” said LaNiece Jones, BWOPA State executive director. “Your support ensures that Black women have a voice at decision-making tables locally, regionally, statewide, and nationally, advancing diversity and equity in leadership spaces.”

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Oakland Post: Week of December 11 – 17, 2024

The printed Weekly Edition of the Oakland Post: Week of December 11 – 17, 2024

Published

5 days ago

December 13, 2024

Oakland Post

To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.

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Post News Group to Host Second Town Hall on Racism, Hate Crimes

The mission of CRD is to protect the people of California from unlawful discrimination in employment, housing and public accommodations (businesses) and from hate violence and human trafficking in accordance with the Fair Employment and Housing Act (FEHA), Unruh Civil Rights Act, Disabled Persons Act, and Ralph Civil Rights Act. The employment anti-discrimination provisions of the FEHA apply to public and private employers, labor organizations and employment agencies. “Housing providers” includes public and private owners, real estate agents and brokers, banks, mortgage companies, and financial institutions.

Published

1 week ago

December 10, 2024

Oakland Post

By Oakland Post Staff

On Tuesday, Dec. 10, from 5-6:30 p.m. PT, Post News Group Global Features Journalist Carla Thomas will host a second Virtual Town Hall on Racism.

Guests will include community builders Trevor Parham of Oakstop and Shawn Granberry of Hip Hop TV.

“There’s been an uptick of blatant racist acts going on in the community and it’s important for communities to have a forum, an outlet, and to be educated on the California Vs. Hate initiative that has resources available for victims and witnesses,” said Thomas. People like Trevor Parham and Shawn Granberry have found a multitude of ways to strengthen, heal, and protect the community through their entrepreneurial networks, special events, and mentoring.”

While community leaders step up, the state has added extra support with the CA vs. Hate, initiative, a non-emergency hate incident and hate crime reporting system to support individuals and communities targeted for hate.

“We are committed to making California a safer and inclusive place for all,” said James Williams, Jr. of the California Civil Rights Department.

In partnership with organizations across the state, the network is designed to support and protect diverse and underserved communities.

“Through CA vs. Hate, we support individuals and communities targeted for hate, identify options for next steps after an act of hate, and connect people with culturally competent resources and care coordination services,” said Williams.

“It’s important to report these incidents in order for us to use the data to enhance prevention and response services,” said Williams.

Funded by the California State Legislature, the California Civil Rights Department (CRD) received funding and authorization from the State Legislature to establish the non-emergency, CA vs. Hate Resource Line and Network to support individuals and communities targeted for hate.

CRD began in 1959 with the creation of the Fair Employment Practices Commission to implement California’s first state-wide protections against discrimination in the workplace. In 1980, the 1959 Fair Employment Practices Act, and the 1963 Rumford Fair Housing Act were combined and rebranded FEHA. The Fair Employment Practices Commission became a department-level agency named the Department of Fair Employment and Housing (DFEH) to enforce that law.

In July 2022, DFEH’s name changed to CRD to more accurately reflect the Department’s powers and duties, which include enforcement of laws prohibiting hate violence, human trafficking, discrimination in business establishments, and discrimination in government-funded programs and activities, among others.

For more information visit the PostNewsGroup.com and CAvsHATE.ORG.