Wal-Mart announced major changes to the way it compensates employees Thursday.
The retail giant hiked its starting wage to $11 an hour and offering increased benefits for parents as well as a one-time $1000 bonus for some workers.
But it’s not out of generosity. It’s thanks to savings that come from the President’s new tax plan.
“We actually estimate that Wal-Mart can generate about $4 billion in incremental free cash flow,” Barclays Analyst Karen Short, told Cheddar. “This is just a portion of the allocation.” The company joins the likes of Bank of America, JetBlue, and AT&T, which have all returned savings from the tax plan to their workers.
But wages at Wal-Mart have been in the spotlight for some time. Facing pressure from advocacy group’s, the retailer has upped what it pays employees three times in the past 3 years.
Still, even with the announced increases, the starting wage is still below the $15 rate for which employees have argued.
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