When you give businesses more of their money back, they will reinvest it in their company, whether it is expanding operations or remunerating staff. That is exactly what’s happening with Walmart, the international retail juggernaut.
As a result of the federal government slashing the corporate tax rate from 35 percent to just over 20 percent, Walmart announced on Thursday that it will increase its workforce’s minimum wage to $11. In addition to this, the company will hand out bonus checks of up to $1,000 to hourly employees.
Walmart isn’t stopping there.
The retail chain is offering full-time hourly workers 10 weeks of maternity leave at full pay, up from six to eight weeks at half pay. Moreover, new fathers and non-birthing mothers will be given full paid leave at six weeks. And, it confirmed it would provide financial assistance to full-time hourly and salaried employees who are looking to adopt children.
Wow!
With total employment exceeding one million, that’s a lot of extra money to dole out. But it’s a private business, and it can do what it wants with its cash.
“Today, we are building on investments we’ve been making in associates, in their wages and skills development,” said Walmart CEO Doug McMillon. “It’s our people who make the difference and we appreciate how they work hard to make every day easier for busy families.”
He added:
“We are early in the stages of assessing the opportunities tax reform creates for us to invest in our customers and associates and to further strengthen our business, all of which should benefit our shareholders. However, some guiding themes are clear and consistent with how we’ve been investing — lower prices for customers, better wages and training for associates and investments in the future of our company, including in technology. Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.”
The perks and changes come into effect next month.
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