Wal-Mart to Raise Minimum Wages of over 100,000 US Employees
There are chances that world's largest retailer Wal-Mart Stores could make its second wage hike this year. The largest private employer in the United States said that it will increase minimum wages of more than 100,000 US employees.
On Tuesday, the company announced that from July it will increase hourly wages for managers of service-oriented departments like electronics and auto care from $10.30-$20.09 to $13-$24.70.
Hourly wages of managers of departments like clothing and consumer products will increase from $9.90-$19.31 to $10.90-$20.71. Workers at specialized areas like the deli sections, workers will earn $9.90-$18.81 per hour in comparison with $9.20-$18.53 currently.
With 1.3 million US workers, Wal-Mart is the largest private employers in America, which has been targeted by labor groups for its minimum wages. In February, the company made an announcement that it would increase minimum wages for 500,000 US employees.
Gary Chaison, Professor of industrial relations at Clark University, thinks that the reason behind the wage increase seems to be discouraging worker unionization. The general feeling is why to join a union to negotiate salary with Wal-Mart when the company itself is taking care of that part.
McDonald's Corp., Target Corp. and TJX Cos., are among other companies that have also increased wages. Main aim behind to increase the wages is to retain workers. On the other hand, Wal-Mart spokesman Kory Lundberg said that they do not think that wage increase measure will help reduce turnover and increase retention.
The company has not unveiled about its workforce turnover rate. As per Lundberg, the rate was below the industry average.