The commitment of Walmart Inc. raising the average hourly wage above $ 15 comes amid a debate in Washington over whether to double the federal minimum wage.
The big box retailer’s goal is politically significant because it aligns with President Biden’s proposal to raise the federal minimum wage to $ 15 per hour, from the $ 7.25 per hour that has existed for 11 years. It also comes from the largest private entrepreneur in the country, with shops located in different labor markets across the country.
But Walmart’s announcement Thursday is not an endorsement of Mr. Biden’s plan, which is part of a $ 1.9 trillion Covid-19 grant proposal from Democrats expected to pass through the House. at the end of this month. The company supports a higher federal minimum wage, but not $ 15 per hour. Although he plans to increase the salary of 425,000 workers per hour by an average of more than $ 14 in January 2020, his minimum wage would remain at $ 11 per hour.
Still, the company’s measure could be played out on both sides of the debate over the federal minimum wage.
Democrats who support Mr. Biden’s wage plan may argue that Walmart’s wage hikes are proof that employers can afford wage increases despite the pandemic’s economic disruptions, according to economists and analysts. Republicans who oppose doubling the federal wage will likely see it as an example of effective free market forces, arguing that the government does not need to intervene.