Walmart Increases Compensation, Cites Tax Reform

Treasury Secretary Steven Mnuchin.   David McNew  Getty Images

Treasury Secretary Steven Mnuchin. David McNew Getty Images

Walmart, Inc. said it will close 63 Sam's Club locations nationwide and convert up to 12 of the affected clubs to e-commerce fulfillment centers in a move to speed delivery of online orders. "We are early in the stages of assessing the opportunities tax reform creates for us to invest in our customers and associates and to further strengthen our business, all of which should benefit our shareholders". Several abruptly closed on Thursday, in some cases without informing employees.

The letter said the closing would be permanent and advised employees to transfer to another Sam's Club, Walmart or find employment elsewhere.

The company said it will provide support and resources to affected employees.

Sam's Club is closing 63 of its warehouse stores across the US, nearly 10 percent of the locations in the 660-store chain.

Some employees didn't realize the stores were closed until they arrived at work on Thursday and found the doors locked and a note announcing the closure, Business Insider reported.

The statement said that following a full review of its portfolio, the company chose to close several clubs to better align our stores with our ongoing strategy. emailed Sam's Club to ask for a complete list of the stores that are being shut down - as well as an explanation - but we are waiting to hear back from the retailer. Those with 20 years of service will get the full $1,000.

Walmart's wage increase will take effect in February.

The one-time bonus, which will vary depending on a worker's length of service, would total about $400 million in Wal-Mart's current fiscal year that ends January 31, the retailer said.

"We offer our sympathies to our residents who were laid off by this abrupt and unexpected closing", said Freeholder Chairman Sergio Granados and Freeholder Christopher Hudak, a resident of Linden, in a joint statement.

Full-time hourly employees will also become eligible for 10 weeks of paid maternity leave and six weeks of paternity leave, along with financial assistance to associates who adopt a child.

The company claimed the wage and benefit changes would benefit the company's more than one million U.S. hourly associates.

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