Wal-Mart is raising starting wages for more than 100,000 US department managers and workers in its deli and other specialised departments.
The moves mark the next wave of wage hikes by the nation's largest private employer, which has been under pressure from labor-backed groups for the treatment of its workers. In February, it announced it was increasing minimum wages for entry-level and long-term hourly employees to at least USD 10 by next February. That increase affected 500,000 of its 1.3 million US workers.
The wage hikes are part of a USD 1 billion program at Wal- Mart that also includes improving training and offering employees more control of their schedules. The company is hoping that by investing in its workers, its customer service will improve, and ultimately that will encourage shoppers to spend more, helping to perk up sluggish sales at its US division.
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In February, Wal-Mart said it would be raising wages for its department managers but didn't offer many details.
Wal-Mart told The Associated Press late yesterday that department managers of complex and service-oriented jobs in areas like produce, electronics and auto care, will start at USD 13 per hour and top out at USD 24.70 per hour, beginning next month. Starting next February, they will be paid at least USD 15 per hour. Previously, the pay range was from USD 10.30 to USD 20.09.
Meanwhile, those managers of less-complicated departments like clothing, and consumer products like paper towels and luggage, will earn from USD 10.90 to USD 20.71 per hour. Previously, they earned from USD 9.90 to USD 19.31.
The hikes come as Wal-Mart is phasing out the position of zone managers, and reassigning those jobs at its stores to assistant managers or department managers in a bid to offer front-line workers more control over how their areas should be run. At the same time, it's adding up to 8,000 more department manager jobs, who will oversee one specific area.
"There's a lot of excitement about the new department managers, the level of ownership they take," Kristin Oliver, executive vice president of people for Wal-Mart's US division said. She noted the company is testing the new department managers in about 450 of the more than 4,500 stores it operates in the US and the results are encouraging.
