Walmart Wages: Company raises minimum wage for US employees

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The world's biggest private employer is handing out raises to its American workers. Walmart is upping its minimum wage - it says - because of recent tax cuts. But not all employees are happy. The company also announced it's closing dozens of stores. CGTN's Jim Spellman reports.

US President Donald Trump and the Republicans promised their tax reform bill would lead to higher wages and economic growth.

DONALD TRUMP US PRESIDENT "As we speak, Congress has reached an agreement on tax legislation that will deliver more jobs higher wages and massive tax relief for American families and for American companies."

And now US retail giant Walmart says many of its employees are getting raises and bonuses as a direct result of the new tax. In a statement Walmart CEO Doug McMillon wirtes, "The President and Congress have approved a lower business tax rate. Given these changes, we have an opportunity to accelerate a few pieces of our investment plan..."

"...we're raising our starting wage to $11 an hour. We're also providing a one-time bonus to hourly associates that pays a larger amount the longer you've been with our company."

Bonuses range from $200 up to a thousand dollars. The company is also expanding maternity and paternity leave and will contribute five-thousand dollars to help employees adopting children. Walmart says the changes will benefit more than a million hourly employees in the U.S..

But it's not all good news for Walmart employees. On the same day the raises and bonuses were announced, the company also stated it would close dozens of its Sam's Club stores. Thousands of those employees will likely lose their jobs. The White House is praising the raises and bonus, but refused to address the store closings.

SARAH HUCKABEE SANDERS WHITE HOUSE SPOKESPERSON "I don't have any comment on that specific component."

Walmart has long faced criticism that it exploits workers through low wages and poor benefits. Facing protests, the company raised base wages to nine dollars an hour in 2015, then 10 dollars an hour last year.

JIM SPELLMAN ALEXANDRIA, VIRGINIA "Even at 11 dollars an hour, many employees will struggle to get by. The U.S. federal minimum wage is 7.25 an hour, though it is higher in many localities. Many anti-poverty advocates are pushing for a 15 dollar an hour national minimum wage, arguing that no one working full time should live in poverty in the U.S. Jim Spellman CGTN Alexandria Virginia."