Wal-Mart Stores Inc. is boosting its starting hourly wage to $11 and delivering bonuses to employees, capitalizing on the U.S. tax overhaul to stay competitive in a tightening labor market, Bloomberg reported. The increase takes effect next month and will cost $300 million on top of annual wage hikes that were already planned. The one-time bonus of up to $1,000 is based on seniority and will amount to an additional $400 million. The company is also expanding its maternity and parental leave policy and adding an adoption benefit. Wal-Mart, the nation’s largest private employer, has fought in recent years to improve its image in the U.S., as it weathered criticism over its treatment of employees. With the wage increase and bonus payment, the company seeks to even its pay gap while simultaneously sending a high-profile thank you to the U.S. government for slashing the corporate tax rate. On the same day that Wal-Mart announced the new benefits, the company also said that it will close “a series” of Sam’s Club warehouse locations after a portfolio review, illustrating how cost cutting remains a key focus.
