The Trump effect is in full swing, as yet another big company is set to dole out more money to employees due to the recently passed tax reform (and tax cut) bill.
That company is Walmart.
Here are the details…
Walmart‘s workers will soon reap the benefits of the recent tax law changes, as the world’s largest private employer raises its starting wage, creates new benefits and distributes bonuses to eligible workers.
The big-box retailer announced Thursday it will increase its starting wage rate for hourly employees in the U.S. to $11, and expand maternity and parental leave benefits. Currently, Walmart’s starting wage is $9 until workers complete a training program. Then, they receive $10.
Walmart will also pay a one-time cash bonus to eligible employees of as much as $1,000. The payouts, which should total roughly $400 million, will result in a one-time charge that the company will take in the fourth quarter of this year.
The bonuses will be determined by an employee’s length of service at the company. Those workers with more than 20 years of experience will qualify to receive the full $1,000. However, workers with less than two years of experience will receive $200, a Walmart spokesman told CNBC.
Employees with 15 to 19 years of service at Walmart will receive $750, while those with 10 to 14 years of work there will receive a $400 bonus, he said. Five to nine years of experience merits a $300 bonus, while two to four years of service will result in a payout of $250.
In expanding its parental and maternity leave policy, Walmart will offer full-time hourly employees in the U.S. 10 weeks of paid maternity leave and six weeks of paid parental leave. Salaried workers will also receive six weeks of paid parental leave.
Prior to these changes, full-time hourly workers were only eligible for up to eight weeks of paid maternity leave and two weeks for paid parental leave.
The company is also creating a new benefit that provides financial assistance to its employees who are looking to adopt a child, giving them as much as $5,000 per child to cover expenses such as adoption agency fees, translation fees and legal costs.
“Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.,” CEO Doug McMillon said in a statement.
“We are early in the stages of assessing the opportunities tax reform creates for us to invest in our customers and associates and to further strengthen our business, all of which should benefit our shareholders,” he added. “However, 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.”
How great is that?
President Trump is getting things done at a record pace, and the stock market is having a field day.
And yet, the left will still find ways to drag down 45’s agenda simply because they’re sore losers.
H/T: Right Scoop
[Note: This post was written by John S. Roberts]