Sunday, February 22, 2015

Walmart pay raise less than sales revenue



It is good that the workers get a raise. In small towns the $7+ after taxes pay
does not make good sales at all. Better pay is better sales, more taxed etc...
http://money.cnn.com/2015/02/19/news/companies/walmart-wages

Keep in mind this is Walmart a $485.65 billion sales revenue
and a 120.57 billion gross income going up corp.
The cost of higher wages would be covered by the sales revenue
also to the fact Walmart workers shop at Walmart so the cost
of raising the pay is not costly to the consumers as Walmart gets
the money back in ways. http://www.marketwatch.com/investing/stock/wmt/financials

The misguided fear that Walmart will raise their prices to cover the cost of the wages,
is a cop out or an excuse to raise the prices to get more income for the store.
It takes care of it's self as many poor will just not buy those things that raise in price,
they will go to a lower priced item. Or buy it anyway taking more of their income,
so sales would still be less as they run out of money sooner spending more.
In the end raising the prices will make less sales and is not needed as Walmart makes
billions with sales and can cover the cost.

I am sure local Walmarts will try to raise their prices. In that case walkaway from the sale
and print up the Walmart Berkeley study and give it to the manager.
"There is only one boss. The customer. And he can fire everybody in the company
from the chairman on down, simply by spending his money somewhere else."
Sam Walton.

"Paying $12 an hour: The move would cost Walmart $3.2 billion if applied to all
workers in the U.S. which amounts to about 1 percent of the company’s annual sales.

Even if Walmart passed the entire cost of the wage increase on to consumers,
we estimate shoppers would pay about $12.50 more per year, or 46 cents per
shopping trip less than the cost of a pack of Tic Tacs at the check-out stand.

The benefits for Walmart’s lowest-paid workers far outweigh the small costs
distributed among its many shoppers. Increasing minimum wages to $12 per hour
would mean average annual pay increases of $3,250 to $6,500 for workers making less
than $9 an hour, and $1,675 to $2,930 for workers now earning between
$9 and $12 an hour.

We found that more than 41 percent of the pay increase would go to workers in
families with total incomes less than two times the federal poverty level ($21,660
a year for a single worker and $44,100 a year for a family of four).
These workers represent the low-income populations that
Walmart often courts as its customers."
http://laborcenter.berkeley.edu/could-walmart-pay-a-living-wage

http://laborcenter.berkeley.edu/topic/low-wage-work

Info about Walmart!!! http://walmart1percent.org

~~~~~Walmart Minimum Wage Of $12 Wouldn't Drive Up Prices, Says Study
If Walmart were to pay its employees a minimum of $12 an hour,
what would that wage baseline do to the retail behemoth’s famously low prices?
According to a new study, probably not much.

Researchers at the University of California, Berkeley’s Center for Labor Research
and Education argue that such a wage bump for the retailer’s lower-paid associates
would translate into an extra cost to shoppers of about 46 cents per trip, or $12.49
a year, if the brunt of the increase was passed on to consumers. The study’s lead author,
Ken Jacobs, claims that the findings support the idea of a “big box”
wage ordinance that would set a minimum wage for large American retailers like
Walmart who are entering urban areas. Such an ordinance failed to make it into law
in Chicago a few years ago. “It wouldn’t affect the competitiveness of their prices,
but the benefits could be substantial on the worker side,” said Jacobs, who chairs
UC Berkeley's labor center. “There’s this assumption that if Walmart was to improve
its wages and benefits they couldn’t exist as they do. But most of what they do to
bring down prices is based on the supply chain. Labor is only one part of that picture.”

Dan Fogleman, a spokesman for Walmart, said the company already offers good wages,
in many cases better than those paid by competing retailers.
“At Walmart we create jobs that offer competitive wages, competitive benefits,
and the chance to have a career,” he said. “Time and again we’ve seen examples
of store managers who started out as associates.”

Jacobs argues that since the higher product prices would be absorbed by customers
across the socioeconomic spectrum, a minimum wage of $12 would disproportionately
benefit working-class people. Walmart employs more than 1.4 million workers in the U.S.,
and the average wage of a Walmart associate is $11.75 an hour, according to Fogleman.
In recent years, Walmart has made a big push into American cities, where it has been
met with resistance over wage issues and the potential impact a big box store could have
on local businesses. Unions and working-class advocacy groups have recently held rallies
and collected signatures opposing the opening of Walmart stores in Washington, D.C.,
where the company has settled on four sites. Walmart has also been fighting battles
recently in New York City, where politicians and unions have so far managed to
keep the retailer out, and in Chicago, where the effects of Walmart's entry into the
area several years ago are still hotly debated.

According to Fogleman, associate wages are typically higher in the company’s urban stores.
Even so, some advocacy groups say the wages aren’t enough to live on, particularly
in expensive metropolitan areas. “This report shows that Walmart can clearly afford
to pay associates a fair wage,” said Jennifer Stapleton, assistant director of
Making Change at Walmart, a campaign led by the United Food and Commercial
Workers International Union. Stapleton pointed out that the increase
“would cost [consumers] less than the cost of a pack of gum at the cash register.”
The UC Berkeley labor center produced a 2007 study that found the opening of one
Walmart store in an area pushed down local retail wages by about 0.9 percent,
a drop that Jacobs attributes to the need for other retailers to compete.
For their most recent study, the center made statistical projections based on wage
figures that have trickled out in Walmart litigation, in some cases several years ago.
Jacobs said he and his colleagues were unable to get up-to-date figures from Walmart.
http://www.huffingtonpost.com/2011/04/19/walmart-pay-worker-minimum-wage_n_851115.html 

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