Walmart gives bonuses to warehouse workers before the holidays

Walmart is offering weekly bonuses to warehouse workers, as the retail giant competes in a tight job market and prepares for the holiday season, the company told CNBC.

The discounter offers additional compensation, depending on the location of the facility and the worker’s role and shift. For some full-time workers, that will be as much as $ 200 more per week and could be more if they are working overtime, according to Walmart spokesman Scott Pope. That extra pay started this month and will continue throughout the year at the majority of Fulfillment and Fulfillment centers, he said.

Walmart warehouse workers already earn more than store associates. Fulfillment and distribution center workers had an average hourly wage of $ 20.37, excluding drivers, higher than the average wage of $ 14.61 for Walmart US at the end of 2020, according to the environmental, social and governance report of the company. The company has since increased wages. In March 2021, the company said the average hourly wage in the United States was over $ 15.25 an hour.

The bonuses were first reported by The Wall Street Journal.

Walmart is the country’s largest private employer with 1.6 million employees. He is among a growing number of retailers and restaurants that have increased their wages, suspended new benefits, and tweaked their recruiting and retention strategies in recent weeks. Many companies spoke of their difficulties in filling jobs, in the context of the reopening of the economy. They attributed the labor shortage to a wide range of factors, including concerns over Covid-19, lack of childcare and additional unemployment benefits.

For Walmart, the extra pay is also intended to get ahead of the rush of the holiday shopping season – and to ensure store shelves and warehouses are stocked, Pope said.

Walmart faces tough year-over-year sales comparisons after strong sales during the pandemic. Additionally, with the rise of the delta variant and changing consumer habits, more and more shoppers may want to ship packages to their doorstep or pick them up from the parking lot.

Walmart shares have risen less than 1% so far this year. In early Friday trading, stocks rose less than 1%.

CVS Health said earlier this week that it will increase workers’ compensation and remove education requirements, such as having a high school diploma or a GED requirement to qualify for most jobs. entry level positions. He said he would increase his minimum wage from $ 11 to $ 15 an hour from July 2022.

Target also launched a new perk this week: debt-free college education for full-time or part-time employees, which will begin in the fall. The company will also help fund graduate degrees. Walmart, which already has a similar education benefit, recently said it was removing the $ 1 per day fee and would pay 100% of tuition and textbooks.

Target also recently announced a bonus of $ 200 for all of its approximately 340,000 hourly workers, which will be paid this month. The company said the investments totaled $ 75 million.