In start contrast to the political free-for-all going on in Washington D.C. over the already infamous AIG bonuses, good old Wal Mart handed out nearly a billion dollars in bonus checks to its employees yesterday, a 46.7% increase over the previous year.
Nearly a million hourly workers will share the $933.6 million, which comes as Wal Mart continues to make bank in a down economy.
From the Wall Street Journal:
The company, the largest retailer in the nation, said it will pay bonuses to about one million of its hourly workers. Its U.S. work force last year grew by about 33,800, to 1.45 million, the company said.
The Bentonville, Ark.,-based company has been a strong performer throughout the recession, posting solid sales and earnings gains while many other retailers have been suffering double-digit percentage declines.
Mike Duke, who took over as chief executive six weeks ago, announced the bonuses in a memo to employees Thursday.
Including profit-sharing payments, 401(k) contributions and merchandise discounts, Wal-Mart says it is giving workers a record $2 billion this year, an increase of about 11% over last year’s $1.8 billion total.
Also interesting is that the article connects the Wal Mart bonuses with the so-called “Employee Free Choice Act,” which in typical Washington fashion would actually remove employee free choice in an effort to make it easier for employees to unionize.
Both the U.S. House and Senate introduced this legislation last week, and Wal Mart has aggressively lobbied against it.
By SanDiegoView March 20, 2009 at 9:26 am
A few points about these Walmart bonus claims-
Based on store performance, whatever that means according to whoever sets the definition or rules, you work hard at a poorly managed store you get nothing.
Department managers are hourly, do they get more than the floor personnel of lesser employment rank who do more actual work? Yes.
Eligibility, many who worked at Walmart will receive nothing, many working there now will not be eligible because Walmart is a revolving door employment practice…and the claimed available amounts will not actually be distributed-
Employee discounts, the already impoverished employee must spend money at Walmart to ultilize/get the discount/bonus.
Claimed $2 billion, how much is actually paid out, accounting never established for public release.
Still no health care coverage for the majority of our part-time hourly workers, claimed to be available but actually unaffordable with $1000-$3000 deductibles.
Payment in a stock purchase contribution, split purchase demanded from employees.
Split cost stock purchase…Payment into a 401K, not available to you now without heavy penalty.
Avoidance of unionization and paying regular living wages and benefits really evading the EFCA
Why the public announcement when almost all companies never pound their own chest about paying their employees.
We are heroes for paying you what you should have received in regular pay.
As long as it makes you feel better about shopping or working there until you find out the truth…
By Eric March 20, 2009 at 10:30 am
Socialism is alive and well with SanDiegoView. Maybe you should read this article by Charles Platt: http://www.boingboing.net/2009/02/01/life-at-walmart.html
I like this quote from him:
“Of course, I was not well paid, but Wal-Mart is hardly unique in paying a low hourly rate to entry-level retail staff. The answer to this problem seems elusive to Barbara Ehrenreich, yet is obvious to any teenager who enrolls in a vocational institute. In a labor market, employees are valued partly according to their abilities. To earn a higher hourly rate, you need to acquire some relevant skills.”
By fitsnews March 20, 2009 at 10:33 am
Eric-
True that …
-FITS
By Just Checking March 20, 2009 at 11:00 am
I was unaware that Wal Mart received part of the government bailout….therefore irrelevant
By X March 20, 2009 at 11:13 am
hold me.
By gary March 20, 2009 at 12:44 pm
Can anybody name any unionized company that is actaully making a profit in the USA now? Anyone? Anyone?
By JustWondern March 20, 2009 at 3:00 pm
Sure Gary….Exon,BP,Dupont,AT&T,UPS,FedEx,etc. Get the picture Gary?
By Eric March 20, 2009 at 3:03 pm
@gary. I believe there are government education systems that are unionized. They seem to always be raking in the dough.
By gary March 20, 2009 at 6:26 pm
JustWondern,
Thanks for your response. To my knowledge, every unionzed company you mentioned is laying off workers and down-sizing. Walmart, however, is expanding and hiring new employees and making a profit.
Incidentally, though I hate shopping a Walmart and though I despise the ubiquitous “Made in China” items, Walmart’s marketing of generic meds on the cheap have really helped improve the medical care of many Americans.
By lou March 20, 2009 at 8:50 pm
do they have health insurance yet?
By Statesman March 20, 2009 at 11:42 pm
Where is a story on the EFCA? Or did I miss it?
By StupidShouldHurtMore (SSHM) March 21, 2009 at 8:40 am
@Gsry,
You want companies that are unionized, not laying people off, and are growing?
Easy – Class 1 Railroads
The fact is this: In some industries, Unions work. The railroad is an excellent example of where it works.
- SSHM