Wal-Mart announced major changes to the way it compensates employees Thursday.
The retail giant hiked its starting wage to $11 an hour and offering increased benefits for parents as well as a one-time $1000 bonus for some workers.
But it’s not out of generosity. It’s thanks to savings that come from the President’s new tax plan.
“We actually estimate that Wal-Mart can generate about $4 billion in incremental free cash flow,” Barclays Analyst Karen Short, told Cheddar. “This is just a portion of the allocation.”
The company joins the likes of Bank of America, JetBlue, and AT&T, which have all returned savings from the tax plan to their workers.
But wages at Wal-Mart have been in the spotlight for some time. Facing pressure from advocacy group’s, the retailer has upped what it pays employees three times in the past 3 years.
Still, even with the announced increases, the starting wage is still below the $15 rate for which employees have argued.
For full interview [click here](https://cheddar.com/videos/wal-mart-raises-wages-cites-tax-reform).
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
About 780,000 pressure washers sold at retailers like Home Depot are being recalled across the U.S. and Canada, due to a projectile hazard that has resulted in fractures and other injuries among some consumers.
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