Certainly, workers who are paid minimum wage will appreciate the wage increase that is taking place across the United States. Their employers, however, are feeling the impact of these changes. Wal-Mart Stores Inc., the biggest private employer in the US with 1.3 million workers, is adjusting its salary base at the 1434 stores.
An internal memo reviewed by Reuters explains to store managers how the hike will impact upon the 21 states that are due to follow through with the changes around January 1, 2015.
Wal-Mart, which prides itself on keeping costs down and has been struggling to grow sales, will be changing its pay structure. They will narrow the gap in the minimum premium paid to people in the higher skilled positions. Wal-Mart will also combine its lowest three pay grades. This includes cashiers, cart pushers and maintenance workers.
The state minimum wage changes range a great deal based on state. There will be a 17% increase in South Dakota, for instance, to $8.50. While in Arizona, there will be only a 2% change which will raise salaries to $8.05.
These changes will also impact other big retailers like Target Corp. and McDonald’s.