9 Matching Annotations
  1. Nov 2018
    1. So where does the remaining $2 billion a year go? Into expansion? No, ten years of the savings will help pay for the $20 billion stock buyback announced last fall.
    2. All of this also has to be weighed against the additional money Walmart will get from the tax cuts. According to what a senior fellow at the Institute on Taxation and Economic Policy told the New York Times, Walmart could easily save $2.2 billion a year from the tax cuts. The company says that the wage increases and bonuses would run $700 million.

      2200000000 - 700000000 = 1500000000 tax bonus after wage increases and bonuses

    3. And then, another 3,500 store co-managers will lose their jobs. These would be higher-paying positions in the stores. But, Walmart will hire 1,700 assistant store managers, a lower salaried job.

      Firing of higher paid employees in order to higher lower paid employees

    4. The store closures are expected to cut 10,000 jobs, with another 1,000 being lost at the company's headquarters.
    5. Tax cuts may have helped offset the costs of tax-deductible spending that seems likely to have happened anyway (as wage strategies are worked out long in advance in any intelligently run company). But helping them are the store closing, firings, and demotions that Walmart also announced.
    6. Layoffs and demotions offset the wage increase
    7. The Bureau of Labor CPI inflation calculator says that $5 in January 1983 was the equivalent of $12.60 in December 2017. The average wage in December was $22.30. In 1983, $5 an hour was poor pay and $11 is today.
    8. Don't misunderstand, any increase in the entry level wages with an employer of Walmart's size is good. The lower the wage, the more likely people will need public assistance of some kind. Whether you want to call these subsidies to employees rather than employers, it is still subsistence money, not munificent remuneration. Having the government deliver it means employers pay less directly and still have workers live through the night to show up the next morning, which is why it's rightly called an effective employer subsidy, just as specialized and targeted massive tax breaks and loopholes are direct subsidies.

      Remuneration is the total of the financial and non-financial benefits to the employee of all the elements in the employment package. An employee who receives any remuneration from his or her base-period employer is not considered to be in unemployment. “Remuneration” is defined to include “severance, termination or dismissal pay.”

    9. companies have claimed that the sudden influx of money, which will likely go to boosting stock prices (top executives and board members are shareholders, too), actually allows them to invest in employees and their businesses. But they generally follow a pattern of doing something seemingly flashy for employees that lasts a year or less following by something far more obviously moderate over time