After Wal-Mart Stores, Inc (NYSE:WMT) was subject to high-profile criticism by a top Presidential candidate, Bernie Sanders, for its abysmal low per hour wage rates, the largest US retailer appears to be making amends. Taking up the ‘hot’ gauntlet of wage rates by candidate Sanders, the company announced $1.5 million contribution. This would be matched by participating suppliers, who will contribute $0.9 per item which qualifies in the month between March 28 and April 25.
Long Awaited Contribution
In a major departure from its typical neutral policies towards causes, Walmart now hopes to be part of the US philanthropic scene. Wal-Mart Stores, Inc (NYSE:WMT)’s Foundation President, Kathleen McLaughlin, who is also the Chief Sustainability Officer, announced that her company’s latest venture is to “make a positive impact on the issue of hunger in the US,” with participation of supply partners.
The co-contribution of $3 million will fund as many as 75 million meals, according to estimations, it is said. The retailer grosses $300 billion in annual sales but this is for the largest retail chain in the country, is contributing to the hunger cause.
Much Criticism
While much criticism has come the retail chain’s way in the past for it’s low hourly rates, a frontal attack by a potential Presidential candidate is a first.
A quick look at Wal-Mart Stores, Inc (NYSE:WMT) history reveals that it is the largest employer in the country, in the private sector. Despite its employment behemoth tag, the company has suffered from a poor commentary on its employee engagement policies. In the past couple of years annual protests have led to marginal increase in the per hour wages. As late as 2015 it raised it per hour wage to $9 per hour.
Early this year it followed it up with another incremental increase to $10 per hour. However, the raise is far short of the national labor expectations of $15 per hour. The company was forced to include the raise as it suffered from high attrition and the processes of training new recruits become an expensive investment. By investing $2.7 billion, as part of the increased wages, the company hopes to retain trained employees.
As the US has 23 million living in food deserts there has been increased pressure on Wal-Mart Stores, Inc (NYSE:WMT) to open more stores in regions where access to fresh produce, meats and grocery is lean.