Walmart’s Smartest Move Yet

American retailing giant Walmart, owners of ASDA in the UK, yesterday committed to paying their 500,000 workers at least $9 an hour by August, rising to $10 in 2016. This compares with a federal minimum wage of just $7.25, which President Obama has sought to raise to $10.10 (unfortunately blocked by Republican-controlled Congress). The move has been welcomed by America’s flourishing anti-low pay movement, despite it seeking a doubling of the federal minimum wage.

At the same time, Walmart going to give employees more ‘control’ over the hitherto erratic shift system that made life particularly difficult for employees with families to support and care for. To be sure, Walmart has taken significant steps away from its past as a bad employer.

I have conflicting views on this development. I certainly do not believe anybody should feel grateful to Walmart for finally living up to its most basic responsibilities as a highly profitable, multinational employer to pay more than the joke that is the federal minimum wage and give its workers a limited degree of security. When people are earning their income from you, you can’t leave them worrying if you’ll give them the hours they need to feed their children next week.

Retail lobbyists in the US have cited the move as proof that retailers do not need to be forced to pay higher wages. That is nonsense. There are tens of millions who languish on poverty pay still. A handful of chains, like Walmart and Ikea, raising their game barely dents that figure. Moreover, employers should not feel that they’re risking their competitive advantages by paying $9 or $10 an hour.

On the other hand, I would not dismiss the significance of the pay increase either. I doubt any commitment to guarantee pay above the minimum wage by the likes of Walmart would have been thought plausible ten or twenty years ago. Campaigning for a $15 minimum wage would have been thought nonsensical. It certainly would have been difficult to mobilise so many low-paid workers to that cause. The very fact that Walmart has made any concession to its employees at all represents a seismic social change.

Of course, Walmart might have calculated that this pay rise should be just enough to blunt the workers’ rights campaigns and alleviate pressure for future concessions. We don’t know. That calculation is wrong in any case: the same process is occurring in the American workforce as is beginning to occur in the UK’s: workers are beginning to organise and raise their aspirations in parts of the economy that never had trade unions. The supermarkets, the fast food restaurants, cleaning firms, industries where employees have rarely been a priority and are at last acting to improve their lot.

They won’t be waiting for Congress or the President to help them out, but they’ll get round to that in due course. (Who knows, they might even get the GOP on board… one day). Until employment regulations are improved, employees will have to fight for every dollar and every guaranteed hour.

Changing the law would be so much simpler.

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One thought on “Walmart’s Smartest Move Yet

  1. This is certainly an interesting development, hopefully American society will become all the more equal, however as you noted this will take some time yet.

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