Walmart to Pay $550 Million in Staff Bonuses, Hire 150,000 Temporary Workers -- 3rd Update

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)

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