Welcome to the “If I scream Loud Enough, I Will Get Whatever I Want” Society. Remember this a few months back? Walmart giving raises to 500,000 people? They did it… they really did it. The result on Walmart for this act of reason and fair dealing? People are FURIOUS!
Several U.S. retailers have raised the minimum wage for their workers in recent months, among them Gap Inc., TJX Cos. and Target Corp. The moves were widely hailed amid calls to combat wage inequality — an issue that even reached the U.S. Securities and Exchange Commission, which on Wednesday voted to force companies to reveal the pay gap between the chief executive officer and their typical worker.
However, if Wal-Mart and other retailers don’t also adjust pay for veteran hourly workers, they could face rising dissent, said David Cooper, an economic analyst at the Economic Policy Institute. Typically, when employers boost their base pay, they also give raises to those making within $1 to $2 of the new minimum to preserve a type of wage hierarchy and keep their longer-time workers happy, studies show.
“Companies want to preserve some type of internal wage ladder, so to do that they have to adjust wages of folks above the new minimum,” Cooper said. If Wal-Mart doesn’t raise wages for these workers, “folks are going to leave or start complaining more vocally,” he said.
Follow us on Facebook at Consciously Enlightened.