Walmart Minimum Wage To Be Raised In One Third Of US Stores In 2015: Retail Giant To Narrow The Gap Between Low And High Paying Positions [PHOTO]

Wal-Mart  will be forced to raise its minimum wage in 1,434 stores starting in 2015, which will impact roughly one third of its U.S. locations.  According to Reuters, minimum wage hikes in 21 states will come into effect January 1st.

Currently, 6,000 Wal-Mart employees make $7.25 an hour. Think Progress reports that the retail giant has been known to treat its employees poorly, and that thousands of workers protested during this year's Black Friday in 1,000 stores across the country calling for higher wages and more reliable working hours. Supposedly, Walmart keeps many employees on erratic part-time or temporary schedules in order to avoid giving them full benefits.

 Growing attention to the issue has definitely helped to bring some change - thirteen U.S. states lifted the minimum wage in 2014, up from $10 in 2013 and $8 in 2012.  The newest Wal-Mart strikes have been calling for $15 an hour. However, only a couple states have approved it.

 Indeed, lifting the minimum wage at Wal-Mart is no small feat. Reuters reports that its operating model is built on keeping costs under close control, as it attracts consumers with low prices and operates on tight margins. Company spokeswoman Brooke Buchanan said the company was making the changes to "ensure our stores in the 21 states comply with the law."

According to a new company memo, there will be visible changes in its pay structure, including a narrowing of the gap in the minimum premium paid to those in higher skilled positions, such as deli associates and department supervisors, over lower grade jobs. Al Jazeera reports that the company's three lowest pay grades will also be combined -including cashiers, cart pushers and maintenance - into one base rate.

An anonymous manager stated, "Essentially, that wage compression at the upper level of the hourly associate is going to help absorb that cost of the wage increase at the lower level."

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walmart
minimum wage
minimum wage increase
black friday
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