Walmart now raising pay of department managers
NEW YORK – Walmart is raising starting wages for more than 100,000 U.S. department managers and workers in its deli and other specialized departments.
The moves mark the next wave of pay raises by the nation’s largest private employer, which was under pressure from labor-backed groups for the treatment of its workers. In February, it announced it was increasing minimum wages for entry-level and long-term hourly employees to at least $10 an hour by next February. That increase affected 500,000 of its 1.3 million U.S. workers.
The wage hikes are part of a $1 billion program at Walmart also includes improving training and offering employees more control of their schedules. The company is hoping by investing in its workers, its customer service will improve, and ultimately will encourage shoppers to spend more, helping to perk up sluggish sales at its U.S. division.
In February, Walmart said it would be raising wages for its department managers but didn’t offer many details.
Walmart told Associated Press late Monday department managers of complex and service-oriented jobs, in areas such as produce, electronics and auto care, will start at $13 per hour and top out at $24.70 per hour, beginning next month.
Starting next February, they will be paid at least $15 per hour. Previously, the pay range was $10.30 to $20.09.
Meanwhile, those managers of less-complicated departments – such as clothing and consumer products (like paper towels and luggage) will earn $10.90 to $20.71 per hour. Previously, they earned $9.90 to $19.31.
Labor advocates claimed the raises as a victory, but called for more.
“Today’s wage announcement, like the last one, falls short of what Walmart workers need in order to raise their families,” the UFCW International Union said in a statement.
Walmart is phasing out the position of zone managers and reassigning those jobs at its stores to assistant managers or department managers in a bid to offer front-line workers more control over how their areas should be run. At the same time, it’s adding up to 8,000 more department manager jobs.
“There’s a lot of excitement about the new department managers, the level of ownership they take,” Kristin Oliver, executive vice president of people for Walmart’s U.S. division, said. She noted the company is testing the new department managers in about 450 of the more than 4,500 stores it operates in the United States, and the results are encouraging.
Walmart, based in Bentonville, Ark., also said late Monday those workers in specialized areas like the deli sections or wireless areas will earn a wage range of $9.90 to $18.81 per hour. Previously, they started at around $9.20 and topped out at $18.53.
The company said in February it was increasing the pay band for entry-level workers such as stockers, cashiers and cart pushers. They now will make $9 to $17.55. Previously, they made $7.25 to $15.15 per hour.
The first wave of raises that took effect in April raised Walmart’s average full-time hourly wage to $13 per hour, up from $12.85. And the average part-time hourly wage rose to $10 per hour, up from $9.48.
Oliver said Walmart is still working on how those numbers will change with the latest wave of increases.
Walmart’s current average is still below the $14.65 average hourly retail workers in a non-supervisory role earn, according to government data that includes people who work at auto dealers and other outlets that would likely pay more than discounters such as Walmart. But it’s above the $9.93 average hourly pay for cashiers and low-level retail sales staff, according to Hay Group’s survey of 140 retailers with annual sales of at least $500 million.