Business

Sam’s Club raises the minimum wage to $ 15, as the tight labor market continues

Sam’s Club employees review invoices after a purchase from customers as other shoppers wait in line to pay for purchases during the shopping season, ‘El Buen Fin’ (The Good Weekend), at a Sam’s store Club, such as coronavirus disease (COVID-19) The epidemic continues, in Mexico City, Mexico, on November 10, 2020.

Henry Romero | Reuters

Sam’s Club said Tuesday it will raise its minimum wage from $ 11 to $ 15 later this month.

With the move, the member-based shopping club will now have a noticeably higher starting salary than its parent company, Walmart, where the minimum hourly wage has recently been increased from $ 11 to $ 12. Sam’s Club is in effect on September 25th.

Sam’s Club has nearly 600 stores and about 100,000 employees. In a note sent to employees, Kath McLay, CEO of Sam’s Club, said that most employees – about 95% – already earn at least $ 15 an hour. However, he said the dealer will bring all workers to the hour up to that level and increase pay for other roles.

Going forward, he said Sam’s Club employees can earn $ 34 an hour – an increase from the maximum hourly wage of $ 29.70 they could make earlier, depending on the location. She said the average hourly rate will be more than $ 17.

“We want you to be paid competitively, if you have found your destination job as, for example, a forklift operator, meat cutter or pastry decorator, or you are just starting out and eager to climb the ladder,” he said. said. “We want you to know that Sam’s Club is a place where you have the opportunity to be promoted, earn a degree, or change direction.”

Over the past few months, retailers from CVS Health to Target have been offering higher pay and new benefits to employees as they seek to recruit and retain employees in a tight labor market where job openings outnumber unemployed Americans. They also needed to fill more roles connected to the supply chain, from merchandise managers to online order fillers, as consumers spend money they saved during the pandemic and buy in new ways.

Sam’s Club’s parent company, Walmart, is the country’s largest private employer with nearly 1.6 million employees. Walmart and Sam’s Club have lagged behind competitors such as Target and Amazon who already pay all employees at least $ 15 an hour. Costco, one of Sam’s biggest rivals, raised his minimum wage to $ 16 an hour in February.

Sam’s Club has seen an increase in sales during the pandemic. His membership has reached an all-time high in recent quarters, although the company does not disclose how much it has.

It has launched new technology-based features to distinguish it from Costco. For example, Sam’s Club has launched a new app-based option that allows shoppers at selected stores to buy some items to transport home and ship others, such as TVs and other bulky items, directly to their doors. The feature allows customers to purchase items all in one transaction.


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