Wal-Mart Raises Wages, Inserts Wage Caps

[Omaha Steve]

Full story: http://apnews.excite.com/article/20060808/D8JC1B180.html

Wal-Mart Raises Wages, Inserts Wage Caps
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Aug 8, 12:39 AM (ET)

By MARCUS KABEL

Wal-Mart Stores Inc. (WMT) said its raising wages at nearly a third of its 4,000 U.S. stores and introducing wage caps at all stores in an effort to remain competitive with other retailers and meet a need for workers and managers as it continues to expand.

Workers at more than 1,200 stores will see their paychecks grow by an average 6 percent, and the world's largest retailer said it will begin introducing wage caps for the first time on each type of job in all stores.

The nation's largest private employer said Monday the changes would help it remain competitive with other retailers and meet a need for workers and managers as it continues to expand.

Wal-Mart has more than 1.3 million U.S. employees, which it refers to as associates.

[lakeguy]

1. how much is 6% of $5.15?

not nearly enough, that's how much.

[Indy_Dem_Defender]

3. had a friend who worked at a wal-mart

In the chicago suburbs, could not get a job anywhere else so he went to wal-mart, after a year made 6.50 an hour. So by those standards he would get a 39 cent raise, ask anyone in the chicago suburbs if you could live on 6.90 x 40 = 276 a week before taxes.

[EmperorHasNoClothes]

12. No where in Chicago can you live on that.

eom

[wickerwoman]

2. Stupid question: What are wage caps?

Isn't that like a maximum salary for certain positions. And isn't that, in fact, bad?

[Acadia Blue]

6. Yea it is bad. ONLY the executives can make real money at pig mart

I hate this store so much. Only go in there for something I can't find elsewhere in my whold town.

[Dont_Bogart_the_Pretzel]

4. Sure...

"remain competitive with other retailers" WTF!!!! Only after they ran off Mom&Pop stores.
This is how wal-mart does it.

[krispos42]

5. Must be a typo...

Wal-Mart doesn't raise wages!!!

[Gman]

7. Companies threatened with unions often will raise wages

and improve benefits to keep the union out.

[ERF]

8. Exactly. If a company acts responsibly then perhaps

employees will not see the need for a union.

Realistically, given current regulation and incentives, it is tough to expect a company to do anything but try and avoid unions. It isn't because executives are evil (although many are), but rather they are more or less compelled to make decisions that maximize profit based on cost/benefit and risk assessment. WalMart is running up against where its behavioiur causes too much reputational damage to compesate for the extra profit, but ultimately what they are doing is amoral.

That's why politicians need to make better rules.

Doesn't this all seem like a process the US went through about 100 years ago? I guess history does repeat itself.

[Demit]

9. If corporations applied that philosophy to their executives as well

--maximizing profit based on cost/benefit--it would be easier to understand the underlying logic. But they don't. They only cry a poor mouth where workers are concerned.

[ERF]

10. No arguments from me. That is why the increasing

amount of activity on the part of shareholders in encouraging. Shareholders (especially big pension funds) are beginning to find their voice. This is a development that will likely increase in the coming years.

[Bridget Burke]

11. What kind of "deregulation" do you want?

Do you have any details on the "current regulation & incentives" that make unions so hurtful to those poor executives?

[nolabels]

13. One time long ago sporadic customer sets spending caps

Vows to never again to spend a red cent in the hell hole.

[wicket]

14. Wage caps for executives??

Why do I highly doubt it?