Walmart Kicks Off On-the-Spot Employee Promotions

Wal-Mart Investors (FILE - In this May 9, 2013 file photo, a worker pushes shopping carts in front of a Wal-Mart store in La Hab
Jae C. Hon/AP
NEW YORK -- Walmart Stores is banking on on-the-spot surprise promotions of about 25,000 U.S. store employees to help send a message that it offers economic security and opportunity.

The world's largest retailer and the nation's largest private employer will be kicking off the promotions at ceremonies Tuesday in its Secaucus, N.J., store and about 15 other markets including Atlanta and Denver. It will dispatch top executives to stores nationwide for similar events for the rest of its fiscal year, which ends in late January. The mostly hourly workers will be promoted to different jobs -- some to store management positions -- and will receive higher pay.

"It's good a time as any to tell our story," said Bill Simon, president and CEO of Walmart's U.S. namesake division. He will be in Secaucus on Tuesday at a ceremony to promote six to eight workers.

The move is an addition to Walmart's announcement in September that it would move 35,000 workers from temporary to part-time status and another 35,000 from part time to full time by year-end. The campaign builds on a theme the discounter pushed throughout the year, including at its annual shareholders' meeting in June, in which it cast the company as a place where employees have a chance to advance.
It has often highlighted that 75 percent of its store management teams started as hourly associates.

The latest campaign comes as Walmart Stores Inc. (WMT) remains a target of attacks by critics, particularly union-backed groups that have argued the discounter puts profit ahead of its workers and pays meager wages.

Last week, OUR Walmart, a group of current and former workers that have been staging protests at its stores, held a press conference in Washington, to pressure the discounter to pay all of its full-time workers at least $25,000 a year. It's planning another round of protests at its stores on the day after Thanksgiving, the traditional kickoff for the holiday shopping season.

The union-backed group latched on to a comment that Simon made at the Goldman Sachs retail investor conference last month when he said that more than 475,000 Walmart workers earned more than $25,000 last year. OUR Walmart inferred that with Walmart employing 1.3 million workers in the U.S., about 825,000, or 63 percent, make less than $25,000 a year.

Walmart says the group has distorted the figure, noting that more than 70 percent of its full-time hourly workers who have worked at its stores and its distribution centers for more than a year make at least $25,000. Walmart isn't counting those who work at its Bentonville, Ark., headquarters or as drivers. Walmart doesn't break down numbers for part-time and full-time workers but noted that full-time workers account for the majority of its workforce.

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