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Walmart says it is 'looking at' supporting minimum wage increase Walmart says it is 'looking at' supporting minimum wage increase
(about 1 hour later)
Walmart, America’s largest private employer, said Wednesday it is looking into supporting an increase in the federal minimum wage. Walmart, America’s largest private employer, denied reports Wednesday that it is looking at supporting an increase in the federal minimum wage.
The surprise move from the giant retailer comes after it has resisted years of protests from workers and union leaders to increase wages. The company played down a report by Bloomberg that said Walmart might consider supporting a rise.
Bloomberg News, which broke the news, said company spokesman David Tovar was looking at improving wages for its US workers so that they would have “additional income”. WalMart has 1.3m US employees, about 4,000 of whom currently make either a state or federal minimum wage. “That’s something we’re looking at. Whenever there’s debates, it’s not like we look once and make a decision. We look a few times from other angles,” it quoted spokesman David Tovar as saying.
Tovar told Bloomberg that Walmart was “neutral” on a rise at present. “That’s something we’re looking at. Whenever there’s debates, it’s not like we look once and make a decision. We look a few times from other angles,” he said. Another Walmart spokeswoman said Tovar’s comments had been taken out of context and that the retailer had not changed its position on the minimum wage. “We are looking at it, as you would expect any large company. That does not mean we have changed our position,” she said.
A move by Walmart would likely have major ripple effects and comes amid mounting pressure for an increase. President Obama called for a raise in the minimum wage in his state of the union speech last month. The president also said he would increase the hourly rate for federal contractors to $10.10. The current US federal minimum wage of $7.25 an hour was set in 2009. Walmart has 1.3 million US employees, about 4,000 of whom currently make either a state or federal minimum wage.
“Those at the top have never done better,” Obama said during last month’s state of the union speech. “But average wages have barely budged. Inequality has deepened. Upward mobility has stalled.” Any move by Walmart would likely have major ripple effects and comes amid mounting pressure for an increase. President Obama called for a raise in the minimum wage in his state of the union speech last month. The president also said he would increase the hourly rate for federal contractors from $7.25 to $10.10.
“Those at the top have never done better,” he said during last month’s state of the union speech. “But average wages have barely budged. Inequality has deepened. Upward mobility has stalled.”
“The cold, hard fact is that even in the midst of recovery, too many Americans are working more than ever just to get by, let alone to get ahead,” Obama said.“The cold, hard fact is that even in the midst of recovery, too many Americans are working more than ever just to get by, let alone to get ahead,” Obama said.
But a rise faces stiff opposition and has also been attacked by Republicans who claim it would kill job creation. It is also opposed by the National Retail Federation, of which Walmart is a member.But a rise faces stiff opposition and has also been attacked by Republicans who claim it would kill job creation. It is also opposed by the National Retail Federation, of which Walmart is a member.
The retail giant has opposed raising minimum wages in the past. Walmart lobbied hard to block a rise in wages in the District of Columbia threatening to scale back expansion if the city increased its minimum wage. The retail giant has opposed raising minimum wages in the past. Walmart lobbied hard to block a rise in wages in the District of Columbia, threatening to scale back expansion if the city increased its minimum wage.
Walmart’s move comes as a report from the Congressional Budget Office (CBO) concluded raising the minimum wage would cost hundreds of thousands of jobs while lifting wages for millions more. The news came as a report from the Congressional Budget Office (CBO) concluded raising the minimum wage would cost hundreds of thousands of jobs while lifting wages for millions more.
The CBO study concluded that a rise similar to the one being championed by Obama would lift 900,000 people out of poverty and boost earnings for 16.5 million Americans. At the same time the hike could cost 500,000 jobs. The CBO study concluded that a rise similar to the one being championed by Obama would lift 900,000 people out of poverty and boost earnings for some 16.5m Americans. At the same time the hike could cost 500,000 jobs.
The report was immediately seized upon by Democrats and Republicans. The White House said the number of job losses may have been statistically exaggerated. Republican Senate minority leader Mitch McConnell said the report showed raising the wage limit could “destroy as many as one million jobs”. This story was updated at 6.45pm ET to reflect an updated statement from Walmart
“If and when Democrats try to push this irresponsible proposal, they should be prepared to explain why up to a million Americans should be kept from having a job,” he said.
Next month Democrat leader Harry Reid plans to introduce the Fair Minimum Wage Act (S. 460) in the Senate. “We want to be part of the conversation because of our size as the country’s largest private employer,” Tovar told Bloomberg. “We get a lot of questions on it from people in DC.”