Walmart, the world’s largest retailer, has long been criticized for paying its employees wages so low that many must rely on public assistance programs to make ends meet.
A 2020 Government Accountability Office (GAO) report revealed that millions of full-time workers earning poverty-level wages qualify for federal benefits such as Medicaid and Supplemental Nutrition Assistance Program (SNAP); Walmart was among the top employers of SNAP and Medicaid recipients in the states included in the report, according to the Los Angeles Times.
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Of course, many other large retail and food businesses have been found to underpay their workers, shifting the burden of supporting low-wage employees onto taxpayers. Amazon (AMZN) and McDonald’s (MCD) are big organizations with significant numbers of employees who depend on assistance programs. (The U.S. Military, while not a private corporation, is another massive organization with many members who rely on government assistance.)
Critics point out that taxpayers effectively subsidize employees’ wages at profitable corporations, allowing these companies to maintain low labor costs while raking in substantial profits.
This situation raises questions about the fairness of a system where taxpayers support corporate profits through public assistance programs.
Image source: Walmart
Walmart extends popular employee discount beyond holiday periods
Employees and worker advocates alike have criticized Walmart, and the company is trying to improve its employees’ financial well-being. The company introduced initiatives like the “Live Better U” program, which offers employees affordable education and skills training.
The latest Walmart (WMT) employee perk is a 10% discount on groceries, and it’s meant to ease employees’ financial strain.
Walmart announced on LinkedIn changes to its Walmart Associate Discount Card and will offer all U.S. employees the discount on groceries, including meat and dairy. Previously the discount was offered only during the holidays.
The program applies to both full- and part-time employees. It is intended to help with the rising costs of food and household essentials affecting nearly every U.S. citizen.
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Additionally, Walmart has raised its starting wages in certain locations and implemented bonuses for long-term employees.
However, some worker advocates argue that these measures are insufficient and that a more comprehensive approach, including higher base wages and improved benefits, is necessary to reduce workers’ dependence on public assistance.
Walmart’s perks and benefits are helpful, but fair compensation would be better
The Walmart program has plenty of critics. They point out that perks and discounts are helpful but do not replace fair compensation.
Walmart’s starting wages in the U.S. currently range from $15 to $17 per hour; every state has a different minimum wage.
This rate is well above the federal minimum of $7.25, according to the U.S. Department of Labor, but is still often insufficient to cover the cost of living in many parts of the country, especially for employees who are supporting families.
Even full-time workers at the upper end of the hourly scale may struggle with rent, health care, and child care costs, forcing them to turn to government programs to fill the gap.
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The new grocery discount may provide immediate relief for Walmart employees, but it does not solve the systemic challenge of inadequate pay.
Inflation and the cost of living continue to rise, so every little bit helps, and some see Walmart’s move as a potential model. Others point out that perks are no substitute for a living wage.
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