Wal-Mart Raising Minimum Wage
Wal-Mart is the biggest retailers in the U.S., but employee surplus could be a big issue because of the raising federal minimum wage. Nowadays, people need more money because of the inflation. There financial trends force some companies must have to make a choose, especially that have a lot of employees. The article, “Higher Wages For Wal-Mart Workers Should Help Bottom Line”(2015), reported that Wal-Mart has more than 2.2 million employees. It also is one of the largest employers in the U.S., which means if the government plans to raise the minimum wage, it might cost a lot form Wal-Mart. The case “Hundreds protest against Wal-Mart in 15 cities, demanding higher wages (Posted 2013-09-06 02:52:58): Some see signs that working poor are reaching
a tipping point of frustration over stagnating wages”(2013) stated that president Obama has called for raising the federal minimum wage to $9 an hour. Compare with the original federal minimum that is $7.25. This policy will influence Wal-Mart’s revenue a lot because of the employee surplus. Many people who work in Wal-Mart argued that the income is not enough for life. The article “United States: Reducing Poverty via Minimum Wages, Alternatives”(2015) points out that a single working adult with two children earning the federal minimum wage of $7.25 and working full- time earns about $14,500 a year, well below the U.S. poverty threshold of $19,073 for a family of this size. Above the mentioned reasons, employee surplus could be an enormous issue for Wal-Mart. For example, Durden (2016) pointed out that Wal-Mart to fire 16,000 as it closes 269 Stores globally because of the employee surplus. Therefore, Wal-Mart needs to take immediate action that cannot only make their employees feel satisfaction but also reduce the losses of revenue.
a tipping point of frustration over stagnating wages”(2013) stated that president Obama has called for raising the federal minimum wage to $9 an hour. Compare with the original federal minimum that is $7.25. This policy will influence Wal-Mart’s revenue a lot because of the employee surplus. Many people who work in Wal-Mart argued that the income is not enough for life. The article “United States: Reducing Poverty via Minimum Wages, Alternatives”(2015) points out that a single working adult with two children earning the federal minimum wage of $7.25 and working full- time earns about $14,500 a year, well below the U.S. poverty threshold of $19,073 for a family of this size. Above the mentioned reasons, employee surplus could be an enormous issue for Wal-Mart. For example, Durden (2016) pointed out that Wal-Mart to fire 16,000 as it closes 269 Stores globally because of the employee surplus. Therefore, Wal-Mart needs to take immediate action that cannot only make their employees feel satisfaction but also reduce the losses of revenue.