After bonus announcement, Walmart fires thousands of co-managers, replaces them with cheaper workers

Wal-Mart Employee in Hair Product Aisle
Wal-Mart store in Airmont, New York. (CREDIT: Getty Images)

After Walmart’s flashy announcement of bonuses of up to $1,000 for some of its workers, the real story played out quietly.

On Wednesday, as news of the bonus announcement was lauded by Trump and Fox News, Walmart abruptly closed down 63 Sam’s Clubs stores. More than 9,000 people lost their jobs. Some only learned about the decision when they showed up to work and found the doors locked.

 

On Friday, there was news of more pain for Walmart workers. The company confirmed to Business Insider that about 3,500 “co-managers” will be laid off across the country. They will be replaced by new, “assistant manager” positions, which would have a lower salary. The laid off workers will be able to “apply” for these new jobs.

As ThinkProgress reported, while the bonus announcement looked amazing it was much more complicated than it first sounded.

Walmart employees are eligible for the $1,000 bonus only if they’ve worked at the company for 20 years. Most Walmart employees, of course, haven’t worked there that long. Those employees will receive a smaller bonus based on seniority. Walmart didn’t explain exactly how the sliding scale will work, but said the total value of the bonuses will be $400 million. Walmart has about 2.1 million employees, which works out to be an average bonus of about $190.

The one-time bonus Walmart announced this morning amounts to just over 2 percent of the total value of the tax cut to the company.

In fiscal year 2017, Walmart had pre-tax profits of about $20.5 billion and paid an effective federal tax rate of around 30 percent. With a new corporate tax rate of 21 percent, the corporate tax cut is worth at least $1.85 billion to Walmart every year. Since this cut is permanent, the true benefits to Walmart will grow much larger over time. But it’s safe to say that, over 10 years, this corporate tax cut will be worth over $18 billion to Walmart. . .

 

via After bonus announcement, Walmart fires thousands of co-managers, replaces them with cheaper workers – The move comes after the mass closure of its Sam’s Clubs stores. — AGR Daily 60 Second News Bites

6 thoughts on “After bonus announcement, Walmart fires thousands of co-managers, replaces them with cheaper workers

  1. Lord have mercy! The spokesperson for the White House, Sarah Huckabee Sanders, in the video, when questioned about the closures, dismissed the awful impact those store closures will have on former workers and went on to expound on how excited she was about some damn bonuses! What’s a $190 bonus when you’re out of a job? And not just Sam’s Club employees got screwed, how about those who purchased a membership to Sam’s Club? Will they get their membership fees back?

    And yet, those thousands of workers, instead of taking to the streets brandishing pitchforks, just dug their hands deep down inside their empty pockets, hung their heads in dejected misery and headed on back home, for now, because how long do you think the unemployment will last? And then, where will they be? Opening yet another homeless tent city in every state that’s closing several of the Sam’s Clubs, that’s where.

    My guess is that if this had happened in other countries, there would have been an uproar heard round the world, but here? We have been effectively cowed and don’t the powers that be know this!

    Like

    • You make many excellent points, Shelby.When you mention tent cities, I shudder to think that many of these workers will end up homeless, given that many families at this income level survive paycheck to paycheck. Ironically I suspect many of these new jobless workers voted for Trump in the belief he would make their lives better. And you’re right about Americans being cowed by the years of propaganda they have been subjected to via the corporate media.

      Liked by 1 person

  2. Reblogged this on necltr and commented:
    Reblog attempt, take three, no deleting, okay? Posting and comments worthy of study and contribution, they only involve our financial and political futures.

    Like

  3. The economic wreck being made of our country goes far beyond the present administration; the President and Press Secretary are caught up in the flow to the drain hole created by the global serfdom cabal created long ago. As an introduction, getting our toes wet, look at how the economic wreck of our country was imposed. Cast of “characters”. Rockefellers, Kissinger, Carter, Reagan/Bush, Bush, Clinton, Bush, and Obama. Plot: great export of our industrial base, mostly to a Communist country, China, with its founding Chairman receiving accolades for his greatest social experiment in history. At the cost of 40 to 80 million lives.
    Henry Ford believed in paying his workers well enough so they could purchase what they produced, and he acted upon that belief. That policy was brought to a close in the second half of the last century, and our industrial base was shipped “offshore.” Wal-Mart employees, those who are left, are brought to a condition where they can not buy inexpensive products made by an underpaid manufacturing base that took our jobs and are paid so little that they can not buy them either. If this continues, the Globalists will have created world-wide serfdom competing with robots for jobs.

    Like

  4. Thanks for persisting in your efforts to reblog, marblenecltr. Also a big thank you to the NSA worker who is monitoring our WordPress accounts for letting it slip through. You bring an important historical perspective to the systematic scheme by Wall Street elites to drive down wages by exporting US jobs. Presumably US wages are low enough now for the oligarchs – I read they’re starting to reshore a number of US manufacturing jobs.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.