This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-42646899
The article has changed 8 times. There is an RSS feed of changes available.
Version 3 | Version 4 |
---|---|
Walmart clouds pay rise by closing Sam Club's stores | |
(about 4 hours later) | |
Walmart has revealed plans to shut dozens of its Sam's Club wholesale shops and lay-off hundreds of workers. | |
The closures were revealed on the same day the world's biggest retailer said it would start paying its US staff at least $11 an hour and hand some of them a one-off cash bonus. | |
Walmart said the pay rise was due to the US tax overhaul which has cut the corporate rate from 35% to a flat 21%. | |
Hourly-paid employees will receive the higher wage from next month. | |
Walmart is the latest in a line of large US companies who have promised to pass on some of the benefits of the corporate tax cut to staff. | |
Others, including Wells Fargo and AT&T, have pledged wage rises or bonuses. | |
US Treasury Secretary Steven Mnuchin claimed that Walmart's pay deal was further proof that the controversial US tax bill is returning money to workers as the administration promised. | |
However, at a press conference on Thursday, Mr Mnuchin dismissed questions about the layoffs. | |
"Lots of things are going on in the economy," he said. "We appreciate what Walmart's doing." | |
Sam's Club, which is named after Walmart's founder Sam Walton, is closing 63 of its sites. | |
Like a cash-and-carry in the UK, Sam's Club is a membership-only retailer that sells bulk merchandise to small businesses and individual shoppers. | |
Sam's Club said that following "a thorough review of our existing portfolio, we've decided to close a series of clubs and better align our locations with our strategy". | |
It said: "Closing clubs is never easy and we're committed to working with impacted members and associates through this transition." | |
Pay deal | |
Doug McMillon, chief executive of Walmart, said that the retailer is still assessing the impact of the changes to corporation tax. | |
But he said: "Some guiding themes are clear and consistent with how we've been investing - lower prices for customers, better wages and training for associates and investments in the future of our company, including in technology. | |
"Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the US." | "Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the US." |
Some full and part-time workers at Walmart will receive a bonus of up to $1,000 based on their length of service. | |
Those with 20 years of service will get the full $1,000. | |
The bonus payments will cost the company, which has a market value of $295bn and made a full-year profit of $13.6bn, a total $400m. | |
The raise will increase the average hourly pay at Walmart for full-time employees from $13.85 to $14.50. | |
Hourly workers will be paid between $11 and $24.70 an hour. | |
Walmart raised its minimum wage to $9 an hour in 2015 and the following year offered a $1 rise to those who completed an internal training scheme. | Walmart raised its minimum wage to $9 an hour in 2015 and the following year offered a $1 rise to those who completed an internal training scheme. |