In its second phase of wage increases, Wal-Mart is scaling up the starting wages for 100,000 employees
Wal-Mart Stores Inc. is raising its initial wages for more than 100,000 employees and managers of store in its various specialized departments. The move marks the round two of remuneration climbs by the largest retail chain company of the world. The largest private employer of the country had been facing extreme pressure from union labors and other pressure groups for how it used to deal with its employees.
In February, it announced that it will raise minimum wages for its entry level and hourly employees to minimum $10 an hour by February 2016. These increases in wages are part of Walt-Mart’s reform program valued at $1 billion that moves around enhancing facilities of training and providing employees more leverage and flexibility in their schedules.
The step was taken at a time when the company is thriving to grow its sales domestically. The company believes that by making strategic investment in its employees, the whole customer service of the company will improve. This, in return, will entice customers to its physical stores, which will help it to grow its sales.
For the manager of the departments, Wal-Mart had declared in February that it will increase wages, but did not provide any details. As per reports by Associated Press that the company announced on Tuesday that the manager of complex and service oriented jobs in areas such as auto care, produce, electronics will initiate at $13 per hour to $24.70 per hour, starting July. This is a lot higher from the previous $10.3 to $20.09 per hour range.
Instead, those simpler department managers such as clothing and consumer products will start at $10.90 and are qualified for per hour wage up to $20.71.
The rise comes as the retailer phases out the zone managers’ position, and relocates them to its different departments as assistant or department manager, in order to give front line control to employees to decide how their areas will function. Instantaneously Wal-Mart is also growing its workforce by adding approximately eight thousand positions of department managers to supervise a precise division.
The company also stated that the workers working in core areas such as wireless areas will be required to make between $9.90 and $18.81 per hour.
According to government data, WalMart present hourly rates are lower than $14.65 of hourly average that majority of employees in normal position earns in retail industry. Auto dealers and retail dealers pay their workers more than the retail giant company.
The latest wage increment program is most likely to ease some of the concerns and complaints that labor unions and employees have with the company’s wage package.
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