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Avatar of GI KoreaBy on January 16th, 2013 at 7:25 am

Wal-Mart Announces Veteran Hiring Plan

» by in: US Military

It will be interesting to see how many veterans take Wal-Mart up on their offer:

Polish those smiles because Wal-Mart plans to announce Tuesday that, beginning Memorial Day, it plans to hire just about every veteran who seeks a job from the nation’s largest retailer, The New York Times reported.

There are stipulations: Veterans must have left the military in the previous year and cannot have a dishonorable discharge, the Times reported.

Wal-Mart officials told the Times the company expects to hire more than 100,000 people over the next five years.  [Stars & Stripes]

I think this will have little effect on the veteran unemployment rate because if Wal-Mart is offering just entry level jobs than many vets will probably just stay on unemployment and look for a higher paying job before working at Wal-Mart.  However, expect the veteran unemployment rate to rise if massive defense cuts from sequestration happen because many DA civilians and contractors are veterans and many of them will end up laid off because of sequestration.

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  • guitard
    8:07 am on January 16th, 2013 1

    many vets will probably just stay on unemployment

    Can you voluntarily ETS (in other words – you are eligible to re-enlist – but choose not to) and immediately start receiving unemployment?

  • Oke Tanker
    3:39 pm on January 16th, 2013 2

    G- Man,
    The short answer is Yes. I was talking to a Soldier the other day who said his buddies upset him when they say they are getting out and going on unemployment.

  • tbonetylr
    5:00 pm on January 16th, 2013 3

    Most desired position: Gun department

  • Flyingsword
    10:23 pm on January 16th, 2013 4

    Hello, welcome to Walmart. Hi, welcome to Walmart. Hello, welcome to Walmart, have a great day.

    Hey! I could do that job!!!

    But I hear unemployment pays better than minum wage….

  • Teadrinker
    10:33 pm on January 16th, 2013 5

    Do they want veterans because they want to help them out or because they are receiving benefits from the government already (I’m guessing they do) and therefore are less likely to seek to try to become unionized?

  • Leon LaPorte
    12:28 am on January 17th, 2013 6

    Under a U.S. tax provision that was extended through 2013, employers can get tax credits of as much as $9,600 for hiring veterans, depending on their disability status, hours of work and other criteria.

    Let’s say they are going to let them work 40 hours a week. In other words, full time. At $8 an hour that comes to around $16,000 a year (before taxes).

    It is more likely they would keep them under 40 hours so they don’t have to provide benefits. So at the entry, part time, minimum wage level they are allowing our vets the opportunity to live well below the poverty line and not have any insurance. To cap it off, they would likely be eligible for welfare and food stamps. So, basically good old Walmarts’ veteran workforce salaries are being augmented by the taxpayer. All it costs the company would be $5000-$7000 a year.

    I know, I know, someone will chime up with “it’s better than no job at all.”

  • Leon LaPorte
    1:35 am on January 17th, 2013 7

    Walmart CEO Pay: More in an Hour Than Workers Get All Year?
    http://abcnews.go.com/Business/walmart-ceo-pay-hour-workers-year/story?id=11067470

    By Ed Smith’s math, the CEO of Walmart earns more in an hour than his employees will earn in a year.

    Smith, an alderman in Chicago, presented posters at a city council meeting showing that Walmart CEO Michael Duke’s $35 million salary, when converted to an hourly wage, worked out to $16,826.92. By comparison, at a Walmart store planned for the Windy City’s Pullman neighborhood, new employees to be paid $8.75 an hour would gross $13,650 a year.

    Smith’s numbers could be a bit off. Equilar, an executive compensation research firm, calculates that Duke earned just south of $20 million in 2009 and $28 million in 2008, not counting millions of dollars in potential performance awards. But the alderman argued that there’s still a “sad” contrast between Duke’s compensation and the wages of his employees.

    “How can you go to bed at night and sleep knowing you make this kind of money and the people working for you can hardly buy a package of beans and rice?” he asked in an interview with ABCNews.com.

    Walmart, meanwhile, said that its wages across the country are competitive in local markets and that on average, hourly employee pay — which includes more experienced workers but not managers — ranges from $10 to more than $12.

    The retail giant made no apologies for Duke’s salary.
    Video: Chicago prepares for a new Walmart after wage issues.
    ABCNEWS.com
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    “I don’t think Mike Duke needs, as the CEO of a Fortune 1 company, needs me to defend his compensation package,” said Walmart director of community affairs Steven Restivo, referring to Walmart’s status as the largest company on the planet.

    The debate over Walmart wages has been a thorny local issue in Chicago, where city aldermen on Wednesday reluctantly approved plans for a new Walmart store. It also speaks to continued concerns nationwide over the pay gap between top executives and their rank-and-file employees.

    A study last fall by the Institute for Policy Studies, a liberal Washington D.C. research group, found that CEOs in the country’s S&P 500 companies make, on average, 319 times more than the average American worker.

    IPS associate fellow Sam Pizzigati said that in the 1970s, that ratio was 30 to 1.

    “We’ve seen, over the past three decades, a tenfold-plus increase in the gap between top executives and average American workers,” Pizzigati said. “That Chicago alderman is putting his finger on a very real problem in American economic life.”

    Why the Pay Gap Has Grown

    Pizzigati said the reasons for the yawning gap are two-fold. Declining top-bracket tax rates over the last half-century, he said, took away a strong disincentive for company boards to keep a lid on CEO pay.

    The top marginal tax rate, he said, dropped from 91 percent in the 1960s to 28 percent in 1980s. It stands at 35 percent today.

    “If you look at historical record, executive pay really started exploding in early 1980s,” he said. “That’s when the top rate started precipitously falling.”

    On the worker side, Pizzigati said, wages have been hurt by the declining power of U.S. organized labor. When it represented more than one-third of the American workforce, unions could influence wages — and force them higher — throughout the labor market. With just seven percent of Americans represented by unions today, Pizzigati said, that’s no longer the case.

    Paul Hodgson, a senior research associate at the executive compensation watchdog group The Corporate Library, attributed the gap to another factor: the use of stock awards in CEO pay. Notwithstanding the recent financial crisis, stocks have seen tremendous gains since the 1980s and that, he said, has been reflected in CEO compensation.

    As a result, he said, “CEO pay has been growing exponentially while everyone else’s wages have been growing arithmetically.”

    Companies that shell out blockbuster salaries and benefits maintain that high compensation is necessary to attract the best talent to top positions.

    In Chicago, in recent years the compensation issue has centered largely on so-called big box stores like Walmart. In 2006, the city’s mayor vetoed a resolution by the city council to raise minimum hourly pay by giant retailers in the city to $10 plus $3 worth of benefits.
    Photo: Chicago alderman: “Sad” contrast between Wal-Mart CEO’s pay and employee wages
    ABC News
    Chicago alderman Ed Smith has calculated that… View Full Caption
    Rich Get Richer Watch Video
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    Chicago Labor Leaders Wanted Higher Pay at Walmart

    This week’s approval of the new Walmart store came despite demands by labor organizers that Walmart, a non-union company, should pay at least $11 an hour to new employees. Walmart countered that the $8.75 it plans to pay — which is 50 cents above Chicago’s minimum wage — is more than the starting hourly wages of unionized grocery store workers in the area.

    An organizer for Local 881 United Food and Commercial Workers declined to comment on wages for union members, citing ongoing contract negotiations, but said that, overall, members receive better health insurance and retirement benefits than Walmart employees. (In its defense, Walmart said its health insurance plans offer “a wide range of options” and trumpeted its 401k and profit sharing plans.)

    Smith said he ultimately decided to join his fellow aldermen in unanimously voting to allow the Pullman store because of the jobs the store is expected to create and its addition to the city’s tax base.

    He, too, would have liked to see the retailer pay at least $11 an hour to new employees, but added that he’s glad Walmart’s $8.75 starting pay is above minimum wage.

    “As Kenny Rogers says, ‘You gotta know when to hold them and know when to fold ‘em,’” Smith said. “So that’s what we did.”

  • guitard
    1:52 am on January 17th, 2013 8

    the CEO of Walmart earns more in an hour than his employees will earn in a year. Walmart CEO Michael Duke’s $35 million salary, when converted to an hourly wage, worked out to $16,826.92.

    That’s chump change to Mark Zuckerman and Bill Gates.

  • Leon LaPorte
    1:54 am on January 17th, 2013 9

    …and it get’s better:

    Wal-Mart’s intentionally low wages force employees to need approximately $420,000 per year, per store, totalling $2.66 BILLION annually in Food Stamps and other taxpayer assistance…to survive.

    Wal-Mart’s intentionally low wages and lack of covered benefits cost taxpayers over $1.02 BILLION a year in healthcare costs.

    Wal-Mart’s intentionally low wages cost taxpayers as much as $225 MILLION in free and reduced price lunches for school-age children.

    Wal-Mart’s intentionally low wages cost taxpayers over $780 MILLION in tax deductions for low-income families.

    $2.66 billion in food stamps and tax benefits plus $1.02 billion in healthcare costs, plus $225 million in free school lunches and $780 million in tax deductions a year which comes to a total of $ 4.685 billion dollars a year comes out of Our Pockets!

    Any idiot can make a profit and undercut the competition in prices with a $4.685 Billion a year Tax Payer funded cash advantage.

    Costco pays its workers $17 dollars an hour.

    Walmart is a great job, if you’re in high school.

  • guitard
    1:54 am on January 17th, 2013 10

    Make that . . . Mark Zuckerberg.

  • Leon LaPorte
    1:55 am on January 17th, 2013 11

    8. I don’t think any Facebook or Micro$oft employees qualify for welfare.

  • Teadrinker
    4:22 am on January 17th, 2013 12

    #6,

    Damn, that’s even worse than I imagined.

  • kushibo
    4:52 am on January 17th, 2013 13

    #7, the US has huge gaps when one compares CEO salary with lower management. I think in Japanese or Korean companies it’s an average of 10-to-1 or something, but in the US it’s like 200-to-1 (I’ll look up the numbers later).

    Do we get good value for our huge corporate salaries? Perhaps not.

  • Teadrinker
    8:58 am on January 17th, 2013 14

    #13,

    Don’t forget the billions embezzled.

    http://www.nytimes.com/2010/04/26/technology/26samsung.html?ref=technology&_r=0

 

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