Monday, October 02, 2006

Wal-Mart to Add Wage Caps and Increase Part-Timers

Some recent changes at Wal-Mart are casting a negative light on the retailer once again (registration may be required to view article). From the worker perspective, a cap on wages caps their motivation to go above and beyond their normal duties because they won't be rewarded for any more than the person who doesn't excel. Wal-Mart's take on the wage cap is that it will give the workers incentives to go for a higher paying job with more responsibility. My take is that Wal-Mart's point sounds fine, except that doing so will most likely only apply to a low number of workers - how many promotions can be available at any time???

Wal-Mart is also increasing the number of part-time workers they have as a percentage of total workers. They say it is being done to better satisfy customers. The worker perspective, though, is that some are having their hours cut and some are no longer given a set schedule. The latter adversely affects working parents who have to deal with child care issues.

Lastly, the article mentions an internal memo that was leaked some time back from Wal-Mart. Apparently, the memo spoke of trying to get rid of long-time employees in favor of new hires who are younger and healthier. The salaries, for one, are much higher for the experienced workers and, if older, tend to use more of the company's health plan.

36 Comments:

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With the power it yields, WalMart could certianly set an impressive socially responsible agenda if it chose to.

In some ways, the company has. It makes very large charitable contributions, and has made social responsibility a part of its buying practices.

That's why its hard to justify some of its hiring practices. Having said that, I think this is certainly a topic the company should address. How a company treats employees is a critical element of socially responsible business as well.

 
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