After instituting two prior rounds of restructuring this year, Walmart announced that it is introducing a “team-based operating model” in its supercenters, which comprise the majority of the chain’s stores at more than 3,500. Associates who move into new roles will receive higher compensation, with approximately 165,000 hourly associates — 11% of Walmart’s workforce — receiving a boost in wages.
A July restructuring involved culling hundreds of employees, who will continue to be paid through Jan. 31, 2021. Store-level employees who are not selected for new roles in this latest round “will be able to continue working at Walmart if they choose to,” at current pay levels at least through October 2021, said Dacona Smith, COO of Walmart U.S. in a memo posted in the company’s newsroom.
Co-manager, assistant manager and department manager positions will transition into roles with greater responsibility known as store lead, coach and team lead, respectively. Hourly pay for team leads will start in the range of $18 to $21 and go up to $30.
The company also will pay more to skilled workers in stores. In the deli and bakery departments, for example, minimum pay for hourly associates is increasing from $11 an hour to $15 or more. In auto care centers, associates in several roles will receive a base pay increase of $1 or more per hour.
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While associates in the new roles will receive annual pay increases in October, six to eight months earlier than they traditionally have, these workers will no longer be eligible for quarterly bonuses after the end of Walmart’s fiscal year on Jan. 31. “When we’ve asked associates, the overwhelming majority say their hourly wages are the most important part of their pay, well ahead of quarterly bonuses,” Smith wrote.
“Across the store, we’re creating small teams of associates who will be cross-trained and given ownership of the work and their area for everything from in-stock to visual standards,” he added. “We’re especially excited about the team lead role. These associates will lead and develop people, rather than focusing on completing tasks.”
The fact that the pay increases affect a relatively small percentage of Walmart’s total workforce was not lost on worker advocates.
“Raises for some staff, but not for all, will not cut it,” said Cynthia Murray, a Walmart employee and member of a worker-advocacy group, in an interview with Bloomberg. “Promises that jobs and pay will be maintained until October 2021 are no relief when we’re already struggling to make ends meet and there’s no certainty that the economy will be in full recovery in a year.”
