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| Walmart clouds pay rise by closing Sam Club's stores | Walmart clouds pay rise by closing Sam Club's stores |
| (35 minutes later) | |
| Walmart has revealed plans to shut dozens of its Sam's Club wholesale shops and lay-off thousands 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. | 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%. | 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. | 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. | 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. | 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. | 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. | 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." | "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. | 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. | 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. |
| This fall, the company said it planned to narrow its focus, targeting families with incomes between $75,000 and $125,000. | |
| 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". | 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." | It said: "Closing clubs is never easy and we're committed to working with impacted members and associates through this transition." |
| The decision will affect thousands of workers, since each store typically employs more than 100 people. | |
| In Illinois alone, where seven shops are slated to be closed, more than 1,000 people face layoffs, according to notices the company filed with the state. | |
| Senate Democrats said the closures at Walmart show that lower corporate tax bills will primarily benefit "wealthy shareholders, leaving thousands of workers standing in the cold without jobs." | |
| Pay deal | Pay deal |
| Doug McMillon, chief executive of Walmart, said that the retailer is still assessing the impact of the changes to corporation tax. | 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. | 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. | 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. | 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 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. | 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. | 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. |