Representatives for retail commerce giant Walmart recently announced that the company was rolling out a program to raise employees’ wages and provide them with one-time bonuses. Such representatives cited recent tax reform in the United States of America would instantly help companies like Walmart provide its employees with greater compensation.
As one of the largest employers throughout the United States, Walmart’s intentions could set off a chain reaction of wage increases throughout the nation, an undeniably positive change for both individuals throughout America and the commercial marketplace, at large.
Wage Changes Won’t Happen Immediately, But Will Change Soon Enough
The minimum wage of United States employees, set by the government itself, is currently $7.25, a mark it’s been set at since 2009. Walmart announced that it will increase its in-house minimum wage, totally independent of what the government mandates, sometime in February of this year.
Both part- and full-time employees will receive one-off bonuses for their service, although newer employees won’t receive anything. Individuals who have worked for the consumer retail giant for an undisclosed period will receive bonuses. However, all employees, regardless of tenure, will receive permanent wage increases.
Walmart will shell out about $700 million in expenses for the permanent wage increases and one-time bonuses this year, although it had already budgeted the amount as expenses. Recent tax laws passed in the United States by President Donald Trump and company lowered taxes owed by Walmart and other huge corporations, allowing the Arkansas-centered company to provide its employees with higher wages.
Other business entities in the United States, though mostly only corporations, will be able to provide their employees with higher wages thanks to recent tax law changes.
As recently as Friday, January 12th, Walmart announced it also would be closing 63 Sam’s Club locations around the nation, due to losses associated with continuing their operation. These closures, however, aren’t to credit for recent wage hikes – only tax changes are responsible.
India Kicks PriceWaterhouseCoopers From Its Commercial Marketplace
In 2009, reports surfaced of Satyam, a computer manufacturer in India, had artificially inflated its earnings in recent years. Its auditor, PriceWaterhouseCoopers, didn’t catch the fraudulent activity, which is consistent with the fact most auditors aware of clients’ fraudulent activity collude with clients, meaning more money for those specific organizations’ auditors.
About 2,500 PwC employees are slated to lose their jobs, as the accounting firm won’t be able to audit for two years within India’s confines.