Walmart announces bonuses for 700,000 U.S. hourly workers with conditions

Walmart has announced a new bonus plan aimed at boosting wages for 700,000 of its front-line staff, including employees at its pharmacy and Vision Center stores.
Walmart IndiaThe salary increase announced by Walmart will provide both part-time and full-time associates with financial bonuses of up to $1,000 annually. The idea for the bonuses came from feedback provided by store workers, according to Walmart U.S. CEO John Furner.

The bonus plan is part of a broader effort to remain competitive on base wages. “It’s important that we are competitive on base wages,” John Furner stated during a call with reporters.

This announcement follows Walmart’s January redesign of its bonus structure for U.S. store managers, which allows them to earn an annual bonus up to 200 percent of their salary.

The bonus plan was revealed just hours before Walmart’s annual general meeting, where shareholders voted on seven proposals. One proposal urged Walmart to establish a compensation policy ensuring that workers earn enough to meet a family’s basic needs.

Eligibility for the bonus requires an hourly worker to have been with the company for at least a year. The bonus is calculated based on store performance targets, Reuters news report said.

Walmart employs approximately 1.6 million workers in the U.S., with most staffing its 4,700 stores. Despite the new bonus plan, critics argue that Walmart workers still fall short of earning a living wage. A representative from The Shareholder Commons, an activist investor group, highlighted that Walmart’s CEO, Doug McMillon, earns 933 times more than the company’s median employee.

Walmart’s bonus plan is designed to reward both performance and long-term commitment. The company’s minimum hourly wage starts at $14, which is less than the $15 starting wage at competitors Amazon and Target.

The shareholder proposal advocating for a compensation policy to ensure workers can meet a family’s basic needs, which Walmart had recommended voting against, received about 4.4 percent of the shares voted on Wednesday.

InfotechLead.com News Desk

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