Monday, August 31, 2015

WalMart Follows Up On Raising Its Minimum Wage By Cutting Employees Hours

Imagine my surprise.

After raising the minimum wage for its lowest compensated workers, Walmart is now cutting some workers’ hours to try to trim costs.

Store managers were recently told to cut back on hours to reduce costs, which has led to them eliminating hours from the schedule, telling workers to leave their shifts before they end, or having employees take longer lunches, Bloomberg News reports, according to Think Progress.

One anonymous Walmart worker near Houston told Bloomberg that her store had cut more than 200 hours a week by asking people to go home early. Another in Fort Worth was told that the store would cut 1,500 hours and said that employees who had been asked to stay late for extra work earlier in the week were told to take two-hour lunch breaks later on to make up for those hours.

In February, Walmart announced that it would raise its base pay to at least $9 an hour by April and $10 an hour by early next year, increasing wages for about 500,000 employees and spending more than $1 billion on the effort. At the time, the CEO said the company expected those changes to lower employee turnover and attract better talent, as well as to lead to better customer service that would boost sales.

But earlier this month, the company lowered its annual earnings forecast based in part on the higher cost of employee compensation.

The full story is here.


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