Walmart to Pay $550 Million in Staff Bonuses, Hire 150,000 Temporary Workers -- 3rd Update
March 20 2020 - 2:09PM
Dow Jones News
By Sarah Nassauer
Walmart Inc. said it would pay special cash bonuses totaling
$550 million to its hourly workers and hire 150,000 temporary
staffers as the country's biggest retailer seeks to manage a
shopping surge sparked by the coronavirus pandemic.
The company, which employs around 1.5 million people in the
U.S., has struggled to keep its stores stocked and fulfill online
orders as consumers seek to stock up on food and household
essentials. The company has kept its U.S. stores open but reduced
store hours and limited purchase quantities for some items.
On Thursday, Walmart said it would pay a $300 cash bonus to
full-time hourly workers and a $150 bonus to part-timers. The
company said it would also accelerate first-quarter bonuses.
Walmart also plans to hire 150,000 workers through the end of
May in its stores and fulfillment centers. The jobs will be
temporary at first but could convert to permanent roles.
Target Corp. said Friday it would raise its minimum wage by
$2-an-hour for store and distribution-center workers through May 2.
The company also said it would give special bonuses to 20,000
hourly department managers ranging from $250 to $1,500 apiece and
provide paid leave of up to 30 days for older and pregnant workers.
The moves represent a $300 million investment, Target said.
The changes come after Amazon.com Inc. said it planned to hire
an additional 100,000 people in the U.S. and raise pay for
warehouse and delivery workers by $2 an hour through April. All
three companies are trying to manage a surge in orders at a time
that many clothing and mall-based retailers have shut their
doors.
At Walmart the bulk of the new workers will staff distribution
centers and online fulfillment centers, not make up for store
workers who aren't coming to work, Dan Bartlett, executive vice
president of corporate affairs for Walmart, said Thursday on a call
with reporters. "It's not so much about filling a gap, but there is
just so much demand," he said.
Walmart officials said Thursday they had reached out to industry
groups representing hotels and restaurants, offering to hire staff
who have recently lost their jobs. Walmart is also speeding its
hiring process to 24 hours, down from what is usually a two-week
application process.
Walmart said every U.S. hourly worker employed by March 1 will
receive the special bonus and the payments will be made on April
2.
"We felt this was a moment they needed to be provided some extra
merit pay," Mr. Bartlett said. "They are doing herculean work in
our stores serving our customers in frankly a tense
environment."
Initially, the appearance of coronavirus cases in the U.S. drove
sales of water, cleaning and paper products, Mr. Bartlett said, but
as officials began talking about sheltering at home, the demand
shifted into food categories.
Walmart will start using its parking lots to test patients for
Covid-19, the disease caused by novel coronavirus, within the next
24 to 72 hours in the Chicago area, Mr. Bartlett said. Walmart
Chief Executive Doug McMillon and other retail CEOs discussed the
idea, without giving details, in a White House press briefing last
Friday.
The first testing sites, which Mr. Bartlett on Thursday
described as a pilot, will serve medical workers and first
responders. But retailers aren't able to add more testing locations
until there are enough testing supplies and medical protection, he
said. The lack of supply "is limiting everyone."
Walmart is joining with other retailers, especially Walgreens
Boots Alliance Inc., to provide testing sites, Mr. Bartlett said.
At first, government employees will conduct the tests. If testing
is able to expand to more sites, Walmart and Walgreens aim to have
their own pharmacy staff conduct tests, he said, focusing on rural
areas and other gaps in the government's testing locations.
Amazon's and Walmart's decision to go on a hiring spree and
boost worker pay shows the dual challenges the companies face as
they seek to keep their operations running and address staff
concerns about the pandemic. Both companies have enhanced their
sick-leave policies since the outbreak.
Both companies have disclosed at least one U.S. employee testing
positive for Covid-19. For Walmart, it was a store worker in
Kentucky. Amazon said a worker at a delivery station in Queens,
N.Y., had tested positive as have several warehouse staff in
Europe.
Write to Sarah Nassauer at sarah.nassauer@wsj.com
(END) Dow Jones Newswires
March 20, 2020 13:54 ET (17:54 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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