Walmart, Ohio's largest employer, said 10,652 of its workers in the Greater Cleveland and Akron area will see pay raises in their March 10 paychecks.
CLEVELAND, Ohio -- Walmart Stores Inc. says that 10,652 of its workers in the Greater Cleveland and Akron area will see pay raises in their March 10 paychecks, as part of the company's two-year, $2.7-billion efforts to raise wages and increase opportunities for its 1.2 million U.S. workers.
Walmart, Ohio's largest employer with more than 44,000 workers statewide, calls the increases "part of the largest single-day, private-sector pay increase ever." The company plans to not only raise wages, but improve its training programs to help entry-level workers move up to jobs with more responsibility and better pay.
Ohio workers' March 10 paychecks will also include their share of the more than $9 million bonus earned in the fourth quarter of the retail year that just ended. The quarterly cash bonuses are based on how their stores perform, and Walmart said its workers earned more than $550 million in bonuses in the last fiscal year, including more than $25.6 million for workers in Ohio.
Steve Long, a grocery department manager at the Steelyard Commons Walmart in Cleveland, is one of the workers whose wages are going up this week.
"I started working with Walmart seven years ago as a seasonal temp. In that time I had unlimited opportunities to learn about the business and advance in the company and I plan to keep going," Long said, in a written statement provided by Walmart.
"The wage increase we all received is an investment in those of us who see Walmart as a career opportunity. I appreciate the company for its commitment and for enabling us and our families to live better."
But some critics say they won't be applauding such modest raises.
"Raises are always a good thing," said Amy Hanauer, executive director of Policy Matters Ohio, a Cleveland-based think tank and longtime Walmart observer. "Most companies don't issue a press release every time they grant a modest raise, but it's great. We'd rather see raises than stagnant wages."
"Nonetheless, Walmart remains a very low-wage employer. They start people at $9 an hour, barely above the minimum wage and not enough to get even a very small family of three above the official poverty level of $20,090, even with full-time year round [wages]," she said. "Walmart unfortunately has a history of providing less than full-time hours. So I personally will hold my applause that they are granting what seem to be really very modest increases."
Walmart last year promoted more than 200,000 employees at its U.S. Walmart and Sam's Clubs stores, including 9,002 workers in Ohio, to jobs with higher pay and more responsibility.
It also converted more than 150,000 workers, including 5,317 in Ohio, from part-time to full-time workers.
Starting this month, all workers hired before Jan. 1, 2016, will make at least $10 an hour. Entry-level workers hired after Jan. 1 will start at $9 an hour and can make $10 an hour after they complete a retail skills and training program called Pathways.
Walmart employees already earning more than $10 an hour will see their annual pay increase this month instead of waiting until their hiring anniversary date.
Workers who are already making at or above their pay band will receive a one-time lump sum payment equal to 2 percent of their annual pay.
Walmart did not provide the numbers of employees in those pay categories, but said the overwhelming majority of workers received the per-hour increases. Not many workers received the lump sum, because Walmart raised the maximum pay levels for those jobs last year.
Even after the increases bring Walmart's average full-time hourly rate from $12.96 to $13.38, its workers will still earn less than the $14.95 per hour rate for the average retail worker, Hanauer said.
"Ohio's median wage is over $16 an hour," she said. "It's clear that Walmart remains a force pulling that median wage downward. As of last year, 14,114 Walmart employees and family members qualified for food stamps in Ohio, because the family member who worked at Walmart was paid so little."
Hanauer said the pay increases show that the public critique of Walmart is hitting home, pushing the company to improve its workplace practices. "It's smart for Wal-Mart to provide raises, as it will help them keep their workers employed," she said.
Walmart has 139 Walmart Supercenters, 6 Walmart discount stores, and 29 Sam's Clubs in Ohio.