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00:00:01
>> America's largest employer is giving its workers a raise. Starting in February, entry-level employees at Walmart will earn a minimum of $11 an hour. Others may get cash bonuses of up to $1,000. The staff payouts are the result of the recent US tax overhaul. Walmart is expected to see massive savings and says it wants to share the benefits with its workers.
00:00:23
But there's something else going on. Reuters correspondent Nandita Bose.>> They're saying they want to give what they're getting back to their employees. Now, there is another side to the story, which is how tough the labor market is. So Walmart was at $10 an hour. Target, on the other hand, announced that they're going up to 11 just a couple of months ago.
00:00:46
So Walmart has to stay competitive. So they had to do it, the tax bill made it easier.>> The US unemployment rate is at a 17-year low, hovering around 4%. Wages are rising, but slowly. Walmart's move follows companies such as AT&T, Wells Fargo, and Boeing, which have all promised to pay employees more after Republicans in Congress slashed corporate tax rates.
00:01:09
Retailers such as Walmart are expected to benefit greatly because the majority of their operations are in the US.>> They will actually see billions of dollars come back to their bottom line, frankly. And they're giving out 300 million with this wage increase, and another one-time $400 million because of the bonuses that they're giving out.
00:01:33
So that's still a fraction of what they're gonna actually be able to save over the years. This is a good day if you are a Walmart shareholder, and for the company too.>> Walmart employs about 2.2 million people around the world, with more than 1.5 million in the United States.