Walmart’s Raise – Could it raise the floor for the entire labor force ?

Remember when Walmart got panned for running a Thanksgiving food drive for its own employees—overlooking the irony of demonstrating noblesse oblige by asking customers to subsidize the workers the company itself impoverished? The retail giant took a more strategic approach last week when rolling out its latest do-gooder scheme: raising its base wage incrementally to $10 an hour. The move was widely praised even by labor groups—for lifting wages slightly closer to… well, what it should have been paying workers all along.

Still, the announced raise, to a $9 minimum, then rising to $10 an hour by early next year, isn’t chump change: for many, it means earning perhaps $1 or $2 more per hour, which, spread across an estimated half million workers, may generate a not-insignificant economic stimulus. Moreover, Walmart promises to offer more stable scheduling and boost some managers’ starting pay, as well—all measures that respond partially to the longstanding demands workers nationwide have aired in protests, petitions and lawsuits.

Some predict Walmart’s move could eventually raise the floor for the entire labor force, because the company controls a tremendous retail market share and helps set standards for pay scales across the supply chain, from shelf stockers to truck drivers. Though this market influence has been blamed for depressing wages, an uptick in Walmart’s base wage may theoretically encourage competitors to match its more favorable offerings on the labor market. That’s the business narrative painted by CEO Doug McMillon when he told CBS that Walmart’s motive was to “provide a great customer experience” and ensure that workers understood “how much we value them.”

Chosen excerpts by Job Market Monitor. Read the whole story at What You Should Know About Walmart’s Raise | The Nation.