By Waldo Butters
Walmart announced that they will be raising their starting wages to $11.00 per hour and handing out bonuses up to $1000 to its employees. They, of course, credit this to the tax legislation that was recently passed that slashed the corporate tax rate from 35% to 21%. Wow! Merry belated Christmas Walmart employees.
But Wait! There’s more!
On the heels of this huge announcement came another. This time it leaves Sams Club employees and members scratching their collective heads. That’s right, this “beautiful bigly tax cut” has caused the abrupt (w/o notice) closing of 63 Sams Clubs nationwide.
— Business Insider (@businessinsider) January 11, 2018
For some persective, here’s a list of some of the locations where Sam’s Clubs are closing:
8801 Old Seward Hwy, Anchorage, AK 99515
48 College Rd, Fairbanks, AK 99701
3900 Grants Mill Rd, Irondale, AL 35210
2425 E Florence Blvd, Casa Grande, AZ 85194
5757 E State Route 69, Prescott Valley, AZ 86314
1375 S Arizona Ave, Chandler, AZ 85286
15255 N Northsight Blvd, Scottsdale, AZ 85260
3360 El Camino Ave, Sacramento, CA 95821
17835 Gale Ave, City of Industry, CA 91748
12540 Beach Blvd, Stanton, CA 90680
69 Pavilions Dr, Manchester, CT 06042
355 FL-436, Fern Park, FL 32730
5135 S Dale Mabry Hwy, Tampa, FL 33611
2994 Turner Hill Rd, Lithonia, GA 30038
501 N Randall Rd, Batavia, IL 60510
21430 S Cicero Ave, Matteson, IL 60443
6600 44th Ave, Moline, IL 61265
808 S Illinois Rte 59, Naperville, IL 60540
900 S Barrington Rd, Streamwood, IL 60107
1055 McHenry Rd, Wheeling, IL 60090
460 S Weber Rd, Romeoville, IL 60446
3015 W 86th St, Indianapolis, IN 46268
10859 E Washington St, Indianapolis, IN 46229
4024 Elkhart Rd #1, Goshen, IN 46526
9598 Cortana Pl, Baton Rouge, LA 70815
9750 Reisterstown Rd, Owings Mills, MD 21117
340 E. Edgewood Boulevard, Lansing, MI 48911
3745 Louisiana Ave S, St Louis Park, MN 55426
2800 27th Ave S, Moorhead, MN 56560
81 International Dr S, Budd Lake, NJ 07828
1900 E Linden Ave, Linden, NJ 07036
301 Nassau Park Boulevard, Princeton, NJ 08540
2649 Erie Blvd E, Syracuse, NY 13224
720 Fairmount Ave, Jamestown, NY 14701
700 Elmridge Center Dr, Rochester, NY 14626
1600 Marketplace Dr, Rochester, NY 14623
1101 Shiloh Glenn Dr, Morrisville, NC 27560
4825 Marburg Ave, Cincinnati, OH 45209
9570 Fields Ertel Rd, Loveland, OH 45140
1805 Getwell Rd, Memphis, TN 38111
1615 S Loop W, Houston, TX 77054
13331 Westheimer Rd, Houston, TX 77077
22296 Market Place Dr, New Caney, TX 77357
12919 San Pedro Ave, San Antonio, TX 78216
741 E Little Creek Rd, Norfolk, VA 23518
901 S Grady Way, Renton, WA 98057
1101 Outlet Collection Way, Auburn, WA 98001
7050 Watts Rd, Madison, WI 53719
600 N Springdale Rd, Waukesha, WI 53186
1540 S 108th St, West Allis, WI 53214
6705 S 27th St, Franklin, WI 53132
13550 Aurora Ave N, Seattle, WA 98133
Here is Sam’s Club’s official statement via Twitter:
After a thorough review of our existing portfolio, we’ve decided to close a series of clubs and better align our locations with our strategy. Closing clubs is never easy and we’re committed to working with impacted members and associates through this transition.
— Sam's Club (@SamsClub) January 11, 2018
“Series of Clubs?” That’s 1,000s of jobs that have been cut, just for the record.
Sam’s Club owner, Walmart, released this statement regarding the starting wage increase and bonus:
“Today, we are building on investments we’ve been making in associates, in their wages and skills development,” Walmart CEO Doug McMillon said in a statement. “It’s our people who make the difference and we appreciate how they work hard to make every day easier for busy families.” McMillon said Trump’s corporate tax cut “gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.”
AT&T made a similar move in response to the tax cuts. They gave $1,000 bonus to 200,000 employees, crediting in part, the corporate tax cuts. Previous to the tax cut, AT&T promised a $1 billion increase to their capitol expenditures budget in the US if Tax Reform passed. But there’s another catch.
The New York Post reports that more than 700 Direct TV Home installers were “pink slipped”. This does not include the “215 skilled technician jobs” that were cut in the Southern States. Nor does that include the nearly 700 workers from Texas and Missouri that are being fired starting in February 2018.
The question must be asked: Who exactly benefits from this corporate tax cut? Employees who received bonuses and/or wage increases? Possibly, if you were fortunate enough to not receive a pink slip. Does the economy benefit? If the goal was for trickle down, then we are far from reaping those rewards, if it ever happens. Let’s not even get started on the deficit.
It seems that companies are using these bonuses and wage increases as a PR stunt to ease the bad press they are receiving for the employees who are being fired, brick and mortar stores closing, and now, a whole lot of paying members who just lost their memberships.