endzone_dave Posted August 16, 2011 Share Posted August 16, 2011 Walmart just reported a $3.8B profit in the last quarter. Is Walmart obligated to share more of their profit with the people doing the work? On the one hand, these people can't make more money anywhere else. They are often pulled right out of the trailer park. Although it's not fun, working the checkout line or stocking shelves isn't rocket science. Walmart isn't successful because of their employees but because of their business model. On the other hand, should executives and shareholders be the only people to benefit from success in a company? Walmart benefits from being able to hire non-union employees, maybe they should share more of the wealth. The gap between executives and employees continues to grow in this country and it's hard to believe that's a good thing. Link to comment Share on other sites More sharing options...
Forehead Posted August 16, 2011 Share Posted August 16, 2011 They aren't obligated to do squat. Now whether they should is a different matter. Link to comment Share on other sites More sharing options...
Destructis Posted August 16, 2011 Share Posted August 16, 2011 It's the free market economy at work. I don't like a lot of Walmarts business practices, but that won't prevent them from doing what they do because it works. Link to comment Share on other sites More sharing options...
Burgold Posted August 16, 2011 Share Posted August 16, 2011 They aren't obligated to do squat. Now whether they should is a different matter. That's where I stand. It'd be nice if the employees got a little dividend or bonus in appreciation of exceptional earnings, but the company is built to make a profit. That's it's whole point of existance. Link to comment Share on other sites More sharing options...
mardi gras skin Posted August 16, 2011 Share Posted August 16, 2011 Based on my experience at our local wal-mart recently, they're probably getting paid more than they deserve. If all the profits were distributed evenly among the employees, each employee would receive an extra $1800 a year. That is reducing corporate profits to zero which doesn't sound healthy for any company. Link to comment Share on other sites More sharing options...
Kosher Ham Posted August 16, 2011 Share Posted August 16, 2011 They are now. They took away profit sharing this year and are matching up to 6% of 401k instead. Link to comment Share on other sites More sharing options...
Burgold Posted August 16, 2011 Share Posted August 16, 2011 Based on my experience at our local wal-mart recently, they're probably getting paid more than they deserve.If all the profits were distributed evenly among the employees, each employee would receive an extra $1800 a year. That is reducing corporate profits to zero which doesn't sound healthy for any company. Why's it all or nothing with you? A company bonus doesn't have to be 100% of profits evenly divided. In fact, it almost never is. Link to comment Share on other sites More sharing options...
endzone_dave Posted August 16, 2011 Author Share Posted August 16, 2011 Based on my experience at our local wal-mart recently, they're probably getting paid more than they deserve.If all the profits were distributed evenly among the employees, each employee would receive an extra $1800 a year. That is reducing corporate profits to zero which doesn't sound healthy for any company. Walmart has about 2 million employees and $15B in annual profit. Link to comment Share on other sites More sharing options...
Elessar78 Posted August 16, 2011 Share Posted August 16, 2011 They are now. They took away profit sharing this year and are matching up to 6% of 401k instead. Which sounds great but when you're not making a living wage it's hard to put anything away for retirement. A quick google search brings up that the average Wal Mart employee makes 18K a year. Let's say they're prudent and sock 10% of that into the 401(k) (which they probably can't afford to do) . . . walmart matches a whopping $108 per year for that employee. As to the orig. question . . . no, they are paid commensurate to what the job entails. There are jobs out there that pay better, but you have to go and find it and you might have to break your back doing that job. But it's out there. You might have to leave your family or your geographical home, but it's out there. Plus, education is free in America. Even the worst school system can put you on the right path so I can't imagine that ending up at Wal Mart IN MOST CASES isn't the sum of one's life choices. Link to comment Share on other sites More sharing options...
capcrunch98 Posted August 16, 2011 Share Posted August 16, 2011 Which sounds great but when you're not making a living wage it's hard to put anything away for retirement. A quick google search brings up that the average Wal Mart employee makes 18K a year. Let's say they're prudent and sock 10% of that into the 401(k) (which they probably can't afford to do) . . . walmart matches a whopping $108 per year for that employee. The 6% match means 6% of the annual salary, not 6% of the employee contribution. So Wal Mart would actually be contributing close to $1100 to the 401K of a worker making $18000 per year. Link to comment Share on other sites More sharing options...
Larry Posted August 16, 2011 Share Posted August 16, 2011 Based on my experience at our local wal-mart recently, they're probably getting paid more than they deserve Agree. There's a reason I avoid Wal Mart like a disease, and the reason is because of the absolutely terrible level of service their employees deliver. Most of them make Gomer Pyle look like a model if hard work and effeciency. If all the profits were distributed evenly among the employees, each employee would receive an extra $1800 a year. That is reducing corporate profits to zero which doesn't sound healthy for any company. Actually, I'm staggered by how HUGE that number is. How much does the average employee make, $10K? Are you saying that For every dollar Wal Mart pays an employee, corporate makes an additional 20 cents? That they could give every employee a 10% raise, and only cut their profit in half? Link to comment Share on other sites More sharing options...
mardi gras skin Posted August 16, 2011 Share Posted August 16, 2011 Walmart has about 2 million employees and $15B in annual profit. oops. Sorry. I saw the 3.8B quarterly profit but thought that was annual profit. Link to comment Share on other sites More sharing options...
TMK9973 Posted August 16, 2011 Share Posted August 16, 2011 No.... Because Wal-Mart actually pays thier managers and corprate people pretty well. They also promote within. So basicly get a crap job, but do well, and you will do just fine. Link to comment Share on other sites More sharing options...
The Evil Genius Posted August 16, 2011 Share Posted August 16, 2011 Based on my experience at our local wal-mart recently, they're probably getting paid more than they deserve. So that begs the question...is the poor customer service because the only employees they can hire with the wages they offer, sub-standard? Link to comment Share on other sites More sharing options...
Prosperity Posted August 16, 2011 Share Posted August 16, 2011 So that begs the question...is the poor customer service because the only employees they can hire with the wages they offer, sub-standard? Wal-Mart's business model relies on people walking in and having no clue where **** is. That way you'll wander around their warehouse buying **** you didn't want while you are looking for what you actually came for. If they hired decent customer service they would lose on two fronts: 1) customers would spend less time at the store and 2) increased labor costs. People don't go to wal mart for convenience, they go for price. Wal Mart doesn't have to be convenient to keep its customer base. Link to comment Share on other sites More sharing options...
mardi gras skin Posted August 16, 2011 Share Posted August 16, 2011 So that begs the question...is the poor customer service because the only employees they can hire with the wages they offer, sub-standard? I agree that offering a decent hourly income for fairly menial tasks will help them get better employees. Back in 1994, I worked at Sam's Club making $7 an hour in Hattiesburg, MS. That was a better income than I could have gotten for similar brain dead work elsewhere. They had plenty of college students competing for the jobs available at that salary. If they are now paying less than Target, McDonald's, etc, they'll get worse employees. Do you know if Wal Mart pays less than other companies for similar jobs? Link to comment Share on other sites More sharing options...
Wrong Direction Posted August 16, 2011 Share Posted August 16, 2011 Google Wal Mart and wages and you'll find a billion articles, including a study saying they should pay $12/hour. Here's another page with anonymously reported wages. I have no idea if it's accurate or not. There are a lot of people who are out to get Wal Mart. http://www.glassdoor.com/Salary/Wal-Mart-Salaries-E715.htm Link to comment Share on other sites More sharing options...
sacase Posted August 16, 2011 Share Posted August 16, 2011 No they are paid what the job is worth. Wal-Mart is not supposed to be a job you retire from. When I worked there in college it wasn't a bad gig, I got spending money, a store discount, stock options and if your store exceed sales numbers, then you would get bonus, one year I got a $1400 bonus, but because I was part time, I only got half of that. but still 700 bonus for a part time employee is good scratch especially after working there a little over a year. After 2 years of part time work I was eligible ofr medical insurance also. Once again, its not a job you are going to make a living on, but then again its not suposed to be. Like someone said before, they promote from within, I have a good buddy who went from Stock boy to regional manager, he has never worked for anyone but wal-mart. The only reason I hate walmart is because the prices are so damn good that I usually end up spending more money in there than I Want, I have yet to spend less that $100 in that god for saken store! Not every job deserves a living wage, hell I believe that we already pay to much wages in a lot of menial jobs. Link to comment Share on other sites More sharing options...
Wrong Direction Posted August 16, 2011 Share Posted August 16, 2011 Once again, its not a job you are going to make a living on, but then again its not suposed to be. Like someone said before, they promote from within, I have a good buddy who went from Stock boy to regional manager, he has never worked for anyone but wal-mart. ... Not every job deserves a living wage, hell I believe that we already pay to much wages in a lot of menial jobs. Interesting point. I understand some of the arguments against Wal Mart for sure, but the left has taken yet another position where they want a greater reward for people who aren't deserving. Link to comment Share on other sites More sharing options...
zoony Posted August 16, 2011 Share Posted August 16, 2011 Wal Mart's pay is fair for what they ask of their hourly employees. Where Wal Mart has really struggled is what they pay their salaried employees, but I think that's gotten a lot better. (not their store managers, the assistant managers) While Wal Mart's profits are up, their sales are lagging, and their traffic count (which was leaked to the public) is way down, while other retailers are gaining ground. While there will always be a segment of the population that shops based on price and price alone, I think an increasing % of the population is deciding that they want a little more out of their retailers than low prices, low prices, and low prices. The data supports this directly. Increasingly, quality and style are variables in the American consumer's value equation... not just price. Wal Mart's brand is so entrenched, however, I don't see them ever successfully making this transition. They tried recently and failed, and are now going back to the minimalist model of stacking products up with a sign in a smelly, dirty, poorly maintained, under-staffed store. They are increasing pressure on suppliers to cut costs, cut costs, cut costs. With rising commodities worldwide, it's not hard to see where suppliers will cut. Poor quality, outsourced labor... the Wal Mart business model... but they do have low prices! Link to comment Share on other sites More sharing options...
Destructis Posted August 16, 2011 Share Posted August 16, 2011 Not every job deserves a living wage, hell I believe that we already pay to much wages in a lot of menial jobs. If you are working for a living, then the job does deserve a living wage. The way the economy is now, some people make more money off unemployment than working at Walmart. I have already stated that what Walmart does is free market economy, but I really disagree with your statement. A living wage to me is putting a roof over your head and food on the table. Link to comment Share on other sites More sharing options...
tdigle Posted August 16, 2011 Share Posted August 16, 2011 I wonder if Wal-Marts in areas with stores like Wegman's, Lowe's, Home Depot, and Costco pay more. You're guaranteed to at least start out at $10-$12 at those places. The only practice Wal-Mart should be ashamed of is intentionally cutting people's hours so they don't have to give them health benefits. ---------- Post added August-16th-2011 at 12:40 PM ---------- If you are working for a living, then the job does deserve a living wage. The way the economy is now, some people make more money off unemployment than working at Walmart. I have already stated that what Walmart does is free market economy, but I really disagree with your statement. A living wage to me is putting a roof over your head and food on the table. Damn, your definition is a lot more strict than mine. A living wage to me is putting a roof over your head, putting food on the table, and having enough left over to invest for your retirement. Link to comment Share on other sites More sharing options...
Destructis Posted August 16, 2011 Share Posted August 16, 2011 These days, having enough to invest in your retirement is a luxury. I am able to do that, but if I had stop doing it, I would to keep the roof and food. Link to comment Share on other sites More sharing options...
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