Walmart cuts pay for some new employees

Walmart cuts pay for some new employees

Walmart is cutting the pay for some of its new hourly workers.

The nation’s largest private employer is changing its pay scale for some new entry-level hires, such as those who gather items for online orders or stock shelves, the AP reported. The change, which became effective in July and was first reported this week by The Wall Street Journal, is designed to create consistency in starting pay across stores.

“Consistent starting pay results in consistent staffing and better customer service while also creating new opportunities for associates to gain new skills from experience across the store and lay the groundwork for their career regardless of where they start,” spokesperson Anne Hatfield told the AP. The change also addresses what Hartfield described as difficulty in moving employees to various areas of the store where they are needed if there are salary differences.

CNBC reported new Walmart employees who assist with online shopping or stocking now make about a dollar an hour less than they would if they were hired several months ago.

The change will not affect any existing employees and there will be exceptions, such as those who work in the deli, bakery, auto care departments or other areas that require specific skills.

Walmart announced in January it was raising its minimum hourly wage to at least $14 an hour for a pay range of $14-$19 per hour. At the time, the company said the change boosted its average minimum hourly wage to $17.50.

The chain employs some 1.6 million people.