Hourly Wage @ Walmart
According to an NY Times article, Walmart's average hourly rate for full-time employees is $10.83. Most people seem to believe that Walmart pays only minimum wage but apparently thats not true.
Labels: Walmart
posted by Andrew Fife @ 12:33 AM
20 comments
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20 Comments:
Great post. There are many misconceptions out there and Wal-Mart is included in many.
Yes, but Walmart is the nation's No.1 employer and their health care policies and union-busting practices are atrocious. Plus, they hardly let their employees work 40 hours a week so that they don't apply for health care. I think you should check out some of the stats at WakeUpWalmart.com!
Anonymous:
the post wasn't meant to take sides, rather share a fact around which there are many misconceptions.
That said I do believe that Walmart is unfairly maligned. Are their practices really that different than Target or K-Mart... why don't these companies take any heat?
The real solution to this issue is in government regulation because it isn't fair to set a minimum wage ($6.55) and then gripe at a company that pays 65% above it. I don't claim to know what low-skilled labor is worth, but if $10.83 is not fair pay, than the government needs to raise the minimum wage.
-Andrew
@AndrewFife - I do think that companies like Target and Costco treat their employees better. They are more socially conscious and I think they will be more sustainable business models in the long run.
But, yes, good point about the minimum wage.
Fife, you should read 'How to Lie with Statistics". That average wage figure is meaningless.
Bill Gates have an average net worth of $20 billion dollars. I guess we're both doing pretty good?
Yes, Wal-mart does employ probably tens of thousands for high paid executives and managers. But for the hundreds of thousands of minimum wage employees, that their "average wage" is much higher is of little consolation.
Anonymous:
Walmart's average hourly wage statistic implies that salaried employees/executives are not included.
Furthermore the $10.83 figure fits the trend line for the hourly wage growth of "sales associate," which is Walmart's most common position. According to Wakeupwalmart.com, which is about as anti-walmart as it gets, the average hourly wage of sales associates was $8.23 in 2001 and $9.68 in 2005 so $10.83 in 2008 seems like a credible number hourly workers.
-Andrew
This is a good dialogue, but I disagree that it is the governments job to increase minimum wage and 'declare' what low-skilled labor is worth. That is the job of the market.
Tyler:
A wage, should be determined by supply and demand just like everything else. What I meant was if individuals believe that a market driven wage is inhuman, they should lobby the government for regulation rather than gripe about specific employers.
-Andrew
Andrew - I see your point. The alternative is to simply let their buck lobby for them. Wal-Mart has always been an interesting nemesis in that I see so many people complain about their practices and then drive over and shop there because they have the lowest prices. Wal-Mart has made it very clear in their business plan from the beginning that they are about getting goods to the consumer for the lowest prices possible. That's going to mean they can't pay $20 per hour for a checker. You can't do that without charging more than 97 cents for a roll of toilet paper.
"Walmart's average hourly wage statistic implies that salaried employees/executives are not included. "
It does nothing of the sort. It's just a figure they whipped up for PR (spin -- something you no doubt are familiar with). But hey, if it makes you feel better about shopping at a store where half its employees are living below the poverty line, so be it. Live the delusion. Ignorance is bliss.
Anonymous:
the $10.83 number is credible to me for the reasons stated above. But if anyone skeptical of the data, lets look at the wakupwalmart.com numbers instead.
According to wakeupwalmart.com the average national hourly wage for sales associates was $9.68 in 2005. This does not include executives or salaried employees. In 2005 the federal minimum wage was $5.15.[1] So in 2005 Walmart paid 88% above the minimum wage to its most common position. Even today in Washington state, which is highest in the country, minimum wage is $8.55 so Walmart's 2005 rate is 13% above the nation's highest minimum wage today.[2]
So the point of this blog post is that wages for retail workers is an area that Walmart is playing by the rules and likely paying more than many realize. If Walmart's wage isn't fair, the rules need to be changed.
-Andrew
[1]Historic federal minimum wage rates: http://usgovinfo.about.com/library/blminwage.htm
[2]Current minimum wage rates by state: http://www.dol.gov/esa/minwage/america.htm
And you trust their numbers because...? They say so and it furthers what you want to believe?
Additionally, your assertion that "Wal-Mart isn't as bad as people say" is a straw man argument because you've failed to accurately represent the case that's been made. You're making shit up.
The fact is, you're a professional liar (a PR guy). Your career is about perpetuating misconceptions. Examination of Wal-Mart's PR machine would indeed be a good study for someone in your field. It doesn't surprise me in the least that you've take the position you have.
I work for walmart and they don't pay me 10.83 an hour.......try 8.50 an hour and i work 40 hours a week ..
What you are not understanding is that Dept managers are also hourly employees and their wages are averaged into the high hourly wage that is stated.
What is the ratio of department managers to staff? How much more do department managers make than staff? It seems unlikely that any managers working in the store would skew the numbers because retail management isn't well paid and it's doubtful that such a cost concious company like Walmart would let themselves get top heavy.
That numbers B.S. including various high paid hourly workers to drive up the average.
The average for checkers at Walmart for example is around $8.50/hr.
Also for the people saying the 'market' is setting the wage thats total B.S.
You and I are subsidizing Walmarts low wages and low benefits with public assistance. Essentially the Walton family is stealing billions in tax dollars from the public each year. They're thieves of the worst kind.
Thats absolutely wrong and ridiculous.
wal mart does not pay 10 something an hour more like 8 something an hour and wal mart will write you up for getting anything over 40 hrs. you tell me thats a sorry company to work for...
I don't get how you think some one who stands there running items through a cash register and restocks shelves needs anything more than minimum wage. A monkey could do it so i think it is pretty generous of walmart to go and pay 3 dollars extra to a person who does not need any actual working skills. These people who work at walmart should be happy they still have a job and should stop complaining that they still have a steady source of income.
Anonymous 10/15/09:
the issue isn't what you, I or anyone else thinks is a fair wage for any job. There simply are too many variables for any one person, business or gov agency to decide and market (as the sum of everyone's decisions) is the best arbiter of any and all price/wage disputes. In other words, it doesn't matter if the job requires advanced skills or no skills, what matters most is ratio of jobs available to job seekers with matching skills. Wallmart, like any other business, must offer wages to hire and retain employees at whatever their goals are, ie, high wages to hire quickly and reduce turnover, or low to if their openings aren't urgent and/or retention isn't important. If the end result of a market driven wage is social unacceptable than regulation, such as minimum wages or wage controls, can be used to correct it. And this is why folks who dislike Walmart's practices should be directing their frustration at state and local politicians, not Walmart.
-Andrew
This is just sad. You are complaining about walmart because the dont pay employee's better? Look around. Walmart starts employees well above minimum wage do you think kroger does that? the answer is no. they dont. I know plenty of people who work at walmart who also get 40 hours a week. no its not hard to get 40 a week its hard to get more than 40 a week. Furthermore i wok at kroger where they start you out at minimum wage and give you raises not based on work ethic, attention to detail, or ayhting that you can improve on (not saying walmart does honestly i have no idea if they do or dont) instead they give raises out every 6 months no matter how hard you work. This wouldnt be too bad if we got more than a 5 cent raise but unfortunately that is what we get.
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