Walmart reduces working hours at some stores after raising pay, thus raising cost
Walmart reduces working hours on some of its outlets. Allegedly, the action is intended to compensate for the higher wages it pays employees.
"We have a small number of stores that were significantly over on scheduling and they are working to come more into line with the hours that they have had available all year," Kory Lundberg, a representative from Walmart Arkansas retailer explained.
Lundberg said it would affect only a small number of workers on some of its locations.
The Wall Street Journal reported that Wal-Mart executives instructed store managers of some 4,600 Walmart locations during its annual holiday meeting to adhere immediately on its predetermined plans, which is to reduce the hours of those workers who had been scheduled longer than what has been allotted based on sales projections.
The hour reduction began weeks ago when shoppers upsurge in time for back-to-school season, cited on Bloomberg. Some workers are told either to take longer break time or leave the store earlier. Some managers even had to compress their schedules to four-day week work.
In April, the retail company increased its pay to its 100,000 Walmart managers alongside a raise to 500,000 full-time and part-time workers of $9 per hour. On the whole, the wage increase accounts to an annual cost of $1B, CNN discloses the estimates.
However, United Food & Commercial Workers union perceives Walmart isn't sincere to improve its workers' condition. "We now have further evidence that Walmart's so-called 'wage increase' was nothing more than a cruel PR stunt,"Jessica Levin of the United Food & Commercial Workers expresses her disappointment over Walmart management.
"Hard-working Walmart workers -- many of whom did not even see a raise in pay -- are having their hours cut all so Walmart can pad its bottom line," Levine said.
Generally, Burt Flickinger, managing director of Strategic Resource Group believes that by abridging working hours, Walmart loses excellent workers as they would eventually look for stable schedules at rival stores. It may also lead to poor service that could move away customers.