| Walmart to hike wages for 425,000 workers to average above $15 an hour | | |  | FRI, FEB 19, 2021 | | | | | | TECH, TRANSFORMATION AND THE FUTURE OF WORK | | | | Think a friend or colleague should be getting this newsletter? Share this link with them to sign up.
The latest organization to announce wage hikes: Walmart. The retailer, and nation's largest private employer, announced this week that it will increase the wages of those who stock shelves or support its e-commerce business to $13-19 an hour. This raise will impact 425,000 of Walmart's 1.5-million-member workforce. This move boosts Walmart's average hourly wage above $15 an hour, but its starting pay remains at $11 an hour. This is less than the $15 an hour of its rivals Amazon and Target.
Walmart CEO Doug McMillon told CNBC he supports increasing the federal minimum wage ($7.25/hour), but does not back the President's plan to raise minimum wage to $15 an hour. Walmart says it will continue to raise minimum wage over time, putting together the "opportunity for associates to climb a ladder," McMillon said.
And small businesses appear to agree with the retail giant. A new CNBC | SurveyMonkey Small Business Survey revealed one-third of small businesses anticipate layoffs if Congress does pass the bill to raise the federal minimum wage to $15 an hour. The wage debate rages on with a deep partisan divide with both sides pointing to positive and negative impacts of a minimum wage increase using the same research: according to the Congressional Budget Office, raising the minimum wage has the potential to lift 900,000 people out of poverty, it can also possibly cost 1.4 million jobs. What's ahead on this front is far from certain.
We'll explore some of these themes at our @Work Summit with Global Health Council's Loyce Pace, Rep, Katie Porter (D-CA), Microsoft Chief People Officer Kathleen Hogan, and Greylock's Reid Hoffman and Sarah Guo. From investing in the future to finding solutions right now, for employees, employers and clients alike, we're addressing the steps leaders should take to ensure a productive and prosperous tomorrow.
Join the exclusive network of the most influential CHROs and D&I chiefs pioneering the path forward. Apply to the CNBC Workforce Executive Council today. | | $15 minimum wage will result in layoffs, one-third of small business owners say: Survey | | One-third of small businesses anticipate laying off workers if Congress increases the federal minimum wage to $15 an hour, according to the latest CNBC|SurveyMonkey Small Business Survey. A recent Congressional Budget Office analysis forecasts that a $15 minimum wage would lift 900,000 Americans out of poverty, but result in 1.4 million fewer jobs. Main Street is split on the issue along political lines and based on regional differences. | | | | | | Raising minimum wage to $15 would cost 1.4 million jobs, CBO says | | A rise in the minimum wage to $15 an hour would lead to the loss of 1.4 million jobs by 2025, the Congressional Budget Office said Monday. Employment advocates have disputed the notion that hiking the federal floor would cost jobs and cite myriad benefits. In addition to the job loss, the CBO estimated that 900,000 people would be lifted out of poverty. | | | | | |
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