Walmart Implements Pay Reform for Entry-Level Store Workers
Walmart is reducing the starting hourly rate for entry-level retail employees as businesses look for ways to save expenses in a softening labor market.
According to Walmart spokesperson Anne Hatfield, the change means that all store employees, including cashiers, personal shoppers, stockers, self-checkout helpers, and associates manning departments like sporting goods or electronics, will now receive the same hourly starting wages that are paid at the store, as opposed to different levels previously.
Bakery, auto center, and deli employees would continue to have higher beginning salaries due to the higher level of competence required for these jobs, she added.
According to records reviewed by the Wall Street Journal and shop employees, the modifications to the wage structure, which took effect in mid-July, result in some new store employees being paid less than they would have three months earlier.
The Journal was the first to report on the changes. Depending on where the shop is located, Walmart offers varied starting salaries to its employees. Workers in the Northeast, for instance, begin their careers at higher rates than those in the Midwest.
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Labor Market Uncertainty
According to the spokesman, the new pay structure will not affect Walmart’s $14 minimum hourly salary or cause any pay reductions for current employees. In afternoon trading, the company’s shares increased by nearly 1%.
Walmart’s action comes at a time when reports on U.S. employment growth in August indicated that the labor market was weakening in response to the U.S. central bank’s significant rate increases to chill demand in the economy, which has already begun to see demand for discretionary items falter.
In an effort to minimize expenses, Walmart asked some of its 16,000 pharmacists across the United States to voluntarily accept salary reductions by lowering their working hours, according to a story from Reuters in August.
Yet, the shop has outperformed competitors due to its emphasis on groceries, which are taking up more of consumers’ budgets at a time when inflation is straining their finances. In August, the business increased its full-year projections for the second time in as many months.
In an effort to recruit workers and combat the labor shortages brought on by the COVID-19 pandemic, the retailer has been increasing pay over the past several years.
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Source: Reuters
