- Companies, including Kroger and Amazon, are taking a shot at rivals like Walmart over employee pay.
- Walmart said this week that it would increase many employees’ wages, but not pay a minimum wage of $ 15.
- Amazon, Costco and Target all pay employees at least $ 15 an hour.
- Visit the Insider Business Department for more stories.
Massive retailers have mostly remained silent about looming minimum wage increases.
But they have more to say when they take shots at the competition.
When Walmart announced Thursday that it was raising workers’ wages, rival grocery chain Kroger was quick to respond.
“We welcome Walmart’s announcement to increase their average wage to $ 15 per hour,” a company representative told Insider. “At Kroger, our average hourly wage since 2019 has been $ 15 per hour.”
“In fact, our average hourly rate per hour exceeds $ 20 per hour if we take into account health care, 401 (K) and pensions that so many of our competitors prefer not to offer,” the spokesman added.
Sniping at Walmart is becoming a bit of a tradition in the retail industry. In December, Amazon decided to take a turn at Walmart when Bloomberg reported that an Amazon warehouse opening had reduced a country’s average compensation for the industry.
“What surprises us is that we are the focus of a story like this, while some of the country’s largest employers, including the largest retailer, have yet to join us in raising the minimum wage to $ 15,” Amazon said in said a statement to Bloomberg. the time.
Retailers clipping after each other is no surprise
Amazon pays $ 15 per hour for all warehouse workers.
Noah Berger / Reuters
With a minimum wage of $ 15 already starting in many states and cities, some businesses are spending less time fighting new federal regulations and more time fighting each other.
“Overall, I think most retailers prefer that wages be left to the market rather than what there is legislation for,” Neil Saunders, managing director of GlobalData, told Insider.
“However, many retailers have voluntarily increased wages over the past few years, so an increase to $ 15 is not considered by some to be a big deal now,” Saunders continued. “Indeed, many have raised wages, or are raising their promises, to $ 15.”
Higher remuneration for entry-level positions, as well as better benefits and other benefits, usually means that businesses can hire more engaged workers who are less likely to quit. Retailers increase workers’ wages due to regulation, but also to better compete with competitors.
“One of the challenges for any retailer is revenue,” Moody analyst Charlie O’Shea told Insider in October.
“Amazon has a lot of liberal benefit programs, even for part-time employees,” O’Shea added. “Walmart is busy with college. There are all kinds of bells and whistles that the retailers could do at the top of the food chain because they can afford it.”
The battles in the industry can also help differentiate businesses from competitors. With Walmart, Kroger and Amazon all going through massive leases in 2020, the reputation of being a great workplace can help talent attract stores and warehouses.
Who actually has the highest minimum wage?
Costco was one of the first national retailers to pay all employees at least $ 15 an hour.
Tim Boyle / Getty Images
Some large companies actually pay all employees at least $ 15, while others offer a wider range. Here’s how some of the biggest players measure up.
Walmart minimum wage: $ 11 per hour
On Thursday, Walmart announced that it would expand on March 13 an increase that would bring 425,000 employees’ salaries between $ 13 and $ 19 per hour. As a result, the average salary for nearly half of hourly workers in the US will reach $ 15 per hour, according to a Walmart representative.
All warehouse workers at Walmart earn at least $ 15 an hour. At this point, Walmart’s minimum wage will remain at $ 11 per hour.
“The people for whom we raise wages have usually been with us longer than anyone who could possibly earn the entry wage,” CEO Doug McMillon said in a call with investors this week. “We try to … create this opportunity learning and provide an opportunity for people when they start the business to build a career like so many of us already have.”
Costco minimum wage: $ 15 per hour
Costco raised its minimum wage in 2019 to $ 15. At the same time, the company increased the salary for supervisors and introduced paid leave for all hourly employees.
The retailer has been hailed by many workers as one of the best workplaces in the industry.
“The best part is all the benefits – guaranteed hours, benefits, Sundays time, free turkeys at Thanksgiving, four free memberships, a living wage,” an employee with six years of experience told Insider in 2018.
Target minimum wage: $ 15 per hour
In June, Target raised its minimum wage to $ 15, from $ 13. The increase was part of a multi-year effort, and the company promised in 2017 that it would reach a minimum hourly wage of $ 15 by 2020.
“Everything we want to do and be as a business builds on the central role our team members play in our strategy, their commitment to our goal and the connection they create with our guests and communities,” said Brian Cornell, CEO head of Target, said in a statement.
Kroger minimum wage: varies by region
While Kroger says his average hourly wage since 2019 has been $ 15, some workers earn less than that. Entry level payment varies by region and position.
“Since the beginning of the pandemic, Kroger has proudly invested more than $ 1.5 billion to protect and reward our employees and committed nearly $ 1 billion to provide pensions for tens of thousands of our employees across the country,” he said. a representative said in a statement.
Kroger also recently had adversity because he closed stores in Seattle and California due to the regulation of ‘hero hero’ which would temporarily increase workers’ wages by $ 4 per hour.
“The biggest problem for a lot of people right now is dealing with local ordinances that pay temporary increases and bonuses for heroes,” Saunders said. “It causes a lot of problems and a patchwork of different wage structures. Many of the rules are illogical and difficult to implement.”
Amazon Minimum Wage: $ 15 per hour
Amazon raised its minimum wage in 2018 to $ 15 per hour.
“At Amazon, we believe that $ 15 an hour is the minimum that anyone in the U.S. should be paid for an hour of labor,” Amazon said in a statement to Insider on Friday. “That’s why every Amazon employee since 2018 has been earning an hourly wage of at least $ 15.”
“This is also the reason why we call on Congress to raise the federal minimum wage to $ 15 per hour and to urge other large corporations to raise wages to this level,” the statement continued. “We are pleased that several companies have taken this important step – which will help workers and their families, communities and our general economy – and we hope that more of this will follow.”