Wal-Mart employs nearly as many people as the U.S. government, and its 1.3 million "associates" are so often the source of pity to the nation's economists. They make so little, it's said, they often can't afford to shop in their own low-priced employer's stores.
That makes news that starting pay will rise at about a third of Wal-Mart's U.S. stores, big. Wal-Mart says the range of starting hourly wages will increase an average of 6% but gave no details such as example starting pay. Additionally, the retail chain is instituting new wage caps on each type of job.
Interestingly, the Wal-Mart spokesperson responsible for this news spun the caps as a positive (paraphrase thanks to the AP): "the wage caps give current associates an incentive to move up to higher positions if they want to make more money." Umm... sure. Now employees must get more responsibility if they want more money, I suppose. In the abstract, it's a good thing, but having managed lots of people I've learned that not everyone is cut out for responsibility; the new caps will limit the lifetime earnings potential of thousands upon thousands of employees.
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Reader Comments (Page 2 of 2)
8-10-2006 @ 2:05AM
MAD said...
I've worked for WM for over 20 years and WOW... what a slap in the face!!! All I can say is "this is just the tip of the iceburg". I've know for a long time that WM was trying to "push out" the long term associates and now it's starting to happen with full force. I work in Arkansas and I'll be glad when we see the 6% increase in wages, has ANYONE seen it yet? It sounded good on paper. For those of you who don't know what the wage outline for the caps look like, well....I have this "confidential" information and I'll be happy to share it. You would need to adjust it according to your stores starting rate of pay. Ours happens to be $5.40 a hour (pretty sad huh). Ok, here goes and this came from our store manager who left it out in view.
Level 1 starting- $5.40 cap- $11.34
Level 2 starting- $5.60 cap- $11.76
Level 3 starting- $5.80 cap- $12.18
Level 4 starting- $6.00 cap- $12.60
Level 5 starting- $6.30 cap- $13.23
Level 6 starting- $6.70 cap- $14.07
Level 7 starting- $7.10 cap- $14.91
Unfortunatly, I am a level 7 and yes, I'm over my cap. I was told that since I'm over I will get $400.00 on my next check....What's that??? Hush money!!! My store manager couldn't even really say why everyone that was over their cap was getting it. For the folks that are within .20 cents of their cap, they will be getting $200.00.
I've done alot of things for this company. I've worked various jobs in the store. I've gained the trust and respect of management and upper management with confidential information. I was a loyal and devoted employee. The key word there is "was".
8-10-2006 @ 10:56AM
Jesse Combs said...
Walmart is a business first, they make changes that will help their business and share holders first. If Mr.Sam was alive he would make the same changes. Why pay a people greeter $18 a hour when you can hire 3 for $6.00. Changes happen, you have to change with the times.
8-10-2006 @ 11:15AM
barbara ruffino said...
In response to the comments by Dominick Amorosano on 8/8/06: You need to check your facts. All associates are not given the same increase in pay at eval. time. One of the many points that factor into your increase is dependability/attendance. Your are graded in more than a dozen job related areas and your increase is based on your final score. If you've ever seen an evaluation (which requires your signature and comments) you would know this. You can look at your file to check previous evaluations in yor personel office.
8-10-2006 @ 11:58AM
barbara ruffino said...
A note to MAD.(8/10/06) Is this an example of how you properly handle confidencial material? Did you ask your manager if you could copy and dispurse this information? They were apparently mistaken in trusting you. Granted this information effects you but did you check with your manager to see if it was a final document that he/she was ready to announce to the associates? If your manager couldn't give you all the answers you needed it's probably because he wasn't clear on that himself. My manager told us this was new to him as well and he was still trying to get clarification on some points. He was forthright enough to present to us what paperwork he had received thus far on the matter (the day he received it)in group meetings. We were then able to list our questions and concerns so that he would be sure to address our specific issues with the proper people. The final plan will be available on the wire 8/19/06. He told us he wanted to be the one to keep us apprised of this situation before the media had a field day with it. Sure enough, the next morning it hit the papers. This is the proper way to inform associates of of job related information. What you did is unconscionable.
8-11-2006 @ 4:52PM
Jack Sandy said...
Well aren't you lucky your manager told you before you learned about it in the media.
My spouse learned about it in from the AP press release and has YET to be told about it from management.
It sounds like you have a decent manager but for every decent one there are 3 bad ones.
At least this time store managers and asst. managers are in the same boat with a cap. I bet they just love that.
I wonder if the people above store manager, especially corporate have caps?
People here say you don't HAVE to work there. There are fewer and fewer jobs available and it is an insult to criticize something you know nothing about.
401K was mentioned. Yeah right, with a 2% match? Big whoopee. Average companys match 6%.
No more Christmas bonuses a while back. Raises were recently cut from percentages according to performance to set amounts which were less then the percentages.
Bonus for store performance? Sure, if your store isn't in a high theft area. Theft isn't the employees fault but they get penalized for it with no bonus.
Oh yeah, theft is some employees fault. Those lower wage new people that work stocking on nights. Day shift folks find the empty beer cans in various places in the store where they have stolen them all night and drank them up. Such fine workers. humph.
Also my spouses store has been ordered to NOT hire any full time people for the immediate future. Can't be paying out any benefits can we....
All the above from the LARGEST private employer in the entire United States with hundreds of stores overseas. You have GOT to be kidding me.
Long term employees that have EARNED, yes earned their raises by hard work and top notch reviews deserve more than average pay as is set in a cap.
Where is the reward for hard work and dedication?I'll tell you where, in the corporate millionare's pockets.
8-14-2006 @ 10:57AM
Jamie said...
What no one has mentioned yet is what happens when you do advance with Wal-Mart. Many department managers stay in the positon for years because they do not want management jobs. When you become an assistant manager they can make you relocate across country. If you refuse 3 times you're fired or forced to step down.
8-14-2006 @ 10:24PM
barb said...
Thanks Jamie (8/14) you've hit the nail on the head. People have made the choice to remain a department manager because they don't want to take on the responsibilities and meet the requirements of an assistant manager. That's fine but don't expect the company to keep shelling out more wages every year for twenty years to accompish the same tasks. The cap brings some common sense to this situation. We have department managers making more money than the young assistants who are shouldering far more responsibility and are willing to relocate if necessary. Wages should be based on what you bring to the company in the way of ability not longevity.
8-15-2006 @ 12:06AM
Richard said...
I Think Wal-Mart Store Inc. should have a Pay Scale cap as well, when sale reach 2 Billion dollars all store should shut down for the rest of the fiscal year. This way Wal-Mart Stores Inc. can't make anymore than it's pay wage price cap. What do you guys think of this idea? LOL
8-18-2006 @ 9:25PM
Amy Arnett said...
I've been with Wal-Mart for 20 years. I started as a temp during the Christmas season. You know just until something better came along. I've met Mr. Sam. I tell you that poor man is spinning on high speed. This is not the way he would have done it. How could it be? There is not even a Walton at the top. Rob is nothing more than a figure head sitting back and count his millions.
If you honestly belive that "all" associates will receive this mythical 6% raise then you have obviously never been in Mgmt. I have. The HO sends a report that states who is to receive the raise. Our store already had their start range adjusted and only associates less than 6 months received a raise.
I have done every job in a WM from part-time sales clerk (the lowest paid job except for door greeters) up to an including Store Manager. Wait I don't want to lie, I've never been a claims clerk. In the last 20 years minimum wage has been increased and start rates have been adjusted. Never was I given an adjustment. Three years ago however, WM did a survey of the industry comparing jobs and pay rates, with experience, job skills, and length of employment. When I heard this I didn't care, Why? except for Merit raises, I'd never been given an adjustment that wasn't part of my eval. But low and behold I was called into the office and I didn't make enough. Now, apparently, I'm overpaid. I'm $4.00 over cap. I'm 38 years old and have a Jr and Sr in school. What should I do? I make too much to get grants for my kids school let alone to go back to college myself. I'm an hourly associate now because I have Multiple Sclerosis. I don't carry WM insurance on anyone but myself because it's not worth the money. My husbands company pays for his and our families insurance. It costs me MORE to fill our prescriptions with my WM insurance at my WM pharmacy than if I use my husbands insurance at any pharmacy. Not a little more $400 more. I don't think they are putting a cap on prescription costs or doctors office visits.
Put a cap on wages, fine Whatever. But it's actually taking our money away because I'm pretty sure that the cost of everything else will still be going up. The joke at our store is maybe we should apply for Medi-caid since we are now living on a fixed income.
By the way the union busters from HO were in our store the night that this crap was announced. The part that makes most people the most upset is in the Memo that states "a seven year associate costs 55% more than a 1 year associate and are no more productive" I, and many other associates, take personal offense to this. My assistant managers come to me with questions. I have to stop what I'm doing to train them to do their jobs. Maybe my experience is making me less productive if it makes me have to stop what I'm doing to do their job.
8-26-2006 @ 12:16AM
Karen said...
I just finished viewing two movies on Walmart. The first was a PBS video "Is Walmart good for America" and the second video "Are low prices too high a price"?
Both videos paint Walmart as an evil entity that is silently conspiring to kill the American Dream while redefining that dream for its top executives.
I would like to view a non biased movie to make up my own mind if Walmart is immoral or just a business that is too successful to be allowed. Any suggestions?
9-01-2006 @ 1:57PM
Mark said...
I worked at Sams Club for 5 years as depts manager. We got paid a little better than the Walmart Employees but always heard bad stories from the management there. Walmart will fall from grace. As other ex employees have mentioned, i don't shop there anymore and I never will. I love the LITTLE grocery store down the road that has everything I need. Many of my family and friends have also stopped going there. Other stores I won't shop at as well that abuse their employees.
JcPenney (almost as bad or worse than walmart)
Kaufmanns
Home Depot
The employees need to stand up and start a union immediately. You can always get a job for $7 an hour. Start it and knock down that dictatorship of management. The big effort alone will scare the hell out of them.