Two weeks ago, General Motors announced it would be offering workers record bonuses despite an exceptionally rough fiscal year, with 30 million vehicle recalls and $3 billion in compensation to accident victims.
Now, Wal-Mart has announced it is giving workers a raise. The lowest paid at Wal-Mart will now earn $9 an hour, up from the $7.25 federal minimum.
In 2016, that wage will be pushed up to $10.
In a letter to employees, Wal-Mart CEO Doug McMillon addressed economic and career mobility within the company.
He said Wal-Mart would be launching a program “for future associates that will allow you to join Walmart at $9 an hour or more next year, receive skills-based training for six months, and then be guaranteed at least $10 an hour upon successful completion of that program.”
McMillon also said Wal-Mart would be enhancing its “department manager” position, offering a wage of $13 per hour, up to $15 by 2016.
“If you work hard, develop new skills and care for others, there should be no limit to what you can do here,” he wrote.
Overall, the raises will cost Wal-Mart $1 billion this fiscal year. The changes will take place in April and affect nearly 500,000 full-time and part-time workers by mid-fiscal year.
Striking Wal-Mart employees have been demanding $15 an hour.
[Vinnie Rotondaro is NCR national correspondent. His email address is firstname.lastname@example.org.]