Walmart to End Sunday Pay Perk
Duke is a man concerned with
cutting costs. Walmart’s
CEO came into the
job a couple of years
ago pledging to find
ways to shrink the
company’s overhead and, true to his
word, the company has targeted Sunday
as a day it can save some money.
Walmart announced that all hourly
workers hired in the new year will
no longer be eligible to receive
an extra $1 an hour for working on
Sunday. Current workers will not
Dorian Warren, an assistant professor of international and public
affairs at Columbia University, told Bloomberg News, "It amounts to
a huge wage cut. Wal-Mart has been underperforming financially relative to
its competitors and needs to find quick ways to shore up profits."
turnover rates, Walmart’s move will certainly save it money, but the company
did not cite how much it expected to drop to the bottom line. One thing is
clear, the company does not believe it will negatively affect its store-level
Greg Rossiter, a spokesperson for the chain, told Bloomberg,
"We regularly review our compensation programs and we are confident Wal-Mart’s
pay and benefits are as good if not better than other retailers."
Discussion Questions: Do you think Walmart’s plan to eliminate additional Sunday pay
will hurt the chain’s ability to recruit new workers? Are other large retail
chains doing the same thing?