A week after abandoning efforts to open banks, Wal-Mart Stores Inc. instead is throwing its money at its workers.
Notorious for its low wages and reluctance to offer health care to its workers, Wal-Mart has made an about-face of sorts offering $530 million on Thursday, March 22, in bonuses to its U.S. workers. The payment will be given to the company's 813,759 eligible part- and full-time staff at both Wal-Mart and Sam's Club chains. The bonuses average out to about $651 per employee. In addition, the retailer said its 13,400 employees who have worked at Wal-Mart for more than 20 years will get an extra week's pay. In addition, Wal-Mart will also provide unspecified cash awards to staff who provide "outstanding" customer service.
The incentives resulted from a backlash from labor groups and politicians such as presidential hopeful Sen. Barack Obama, D-Ill., who have criticized the retailer for its low compensation to its employees. For once, Wal-Mart seems to be doing the right thing. A small bonus to the backbone of its company is a dividend it will immediately recoup in happier workers and good public relations. The bonuses seem like a better investment than a controversial bank that everyone seemed to oppose.— Gerald Magpily
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