As a result of sweeping new tax legislation, Walmart in the U.S. is raising the minimum it pays its workers by more than 22%, with no fallout of employment or benefit losses.
Walmart follows AT&T, Boeing and Wells Fargo in announcing bonuses or other benefits for workers, solely as a result of a lower tax rate.
Walmart, known for paying low wages, is raising the starting rate for hourly employees to $11.00 and offering a one-time cash bonus of up to $1,000.
U.S. companies are able to do this voluntarily, whereas in Canada the hike in minimum wage, particularly in Ontario, has seen a huge negative reaction from employers.
In America, U.S. companies are reacting to a massive tax reform bill that will give corporations the revenue to allow them to raise wages, without government legislation.
Maybe long overdue tax reform in Canada would allow significant wage gains, without the offsetting loss of hours or benefits, or both.
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