I have seen many people sharing articles on Facebook about Walmart raising their minimum wage across the country to $11 an hour. This is a huge jump in pay in many states.
However, the pay increase does not come without sacrifice as the corporation lays off thousands of people with the closing of dozens of Sam’s Clubs.
The announcement comes on the same day the retail giant announced it was raisingits starting minimum wage for new employees to $11 an hour.
The company told Business Insider that 63 Sam’s Club stores will close. Some locations reportedly stopped business suddenly on Thursday without giving advance warning to employees.
The Sam’s Club locations slated to close that did not do so on Thursday are reportedly expected to shutter within the next few weeks.
“After a thorough review of our existing portfolio, we’ve decided to close a series of clubs and better align our locations with our strategy,” the company tweeted, “Closing clubs is never easy and we’re committed to working with impacted members and associates through this transition.”
House Speaker Paul Ryan has commended the company’s decision to raise their minimum wage, and added that the tax bill was a major help to middle-class families.
“Today marks 20 days since the Tax Cut and Jobs Act became the law of the land,” Ryan continued, “Already, this new law is helping to improve the lives of middle-income families across the country. You saw the announcement from Walmart just this morning: more than a million Americans are due to receive their bonuses because of tax reform.”
However, his comments came before Walmart announced that they would be laying people off and closing stores.
Treasury Secretary Steven Mnuchin also praised Walmart on Thursday.
“I would also like to highlight the announcement this morning from Walmart. We want to thank them. They will be increasing their minimum wages, issuing bonuses, and expanding family benefits for over 1 million employees,” he said.
“Walmart is the latest company to make such an announcement and today join over 130 other companies across the nation who have already given such relief. We are up to 2 million workers that have seen special bonuses or additional wages,” Mnuchin concluded.
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