Wal-Mart giving 600 isle employees pay raises

HILO — About 600 Big Island Wal-Mart employees will see some sort of pay increase starting Thursday, a spokeswoman for the big-box retailer said, but the company is vague about exactly how much.

Starting Feb. 20, hourly employees hired before Jan. 1 began earning at least $10 per hour nationally — up from a $9 minimum — which will be reflected starting in their Thursday paychecks.

New employees — those hired after Jan. 1 — will remain at a $9 minimum but move up to $10 per hour after completing the company’s new six-month employee training program called “Pathways.” Employees who already earn more than $10 will get an annual pay increase early and employees who’ve maxed out their salary plan will get a one-time lump sum payment equal to 2 percent of their annual pay. Nationally, Wal-Mart pays hourly workers up to $24.77 per hour, company spokeswoman Delia Garcia said.

But it was unclear how much most Hawaii Wal-Mart employees currently start at and how much the plan actually increases their pay. Information in a Wal-Mart news release states: “In Hawaii where starting wage is higher, all (Wal-Mart) associates earn at least $10 an hour.” But Garcia said employees in Hawaii can actually start as low as $9.

“The key is, all our associates in Hawaii are making at least $10 an hour (now),” she said. “… The message we want to send is, Wal-Mart is a great place to work. We have great jobs and great opportunities that’s evidenced by the number of promotions we give every year.”

As of February, full-time Hawaii Wal-Mart employees earned $15.38 per hour on average, according to the news release, and part-time employees averaged $11.68. Garcia did not have average pay data prior to February.

Nationally, the company’s latest pay announcement bumped average hourly wages up for full-time employees from $12.96 to $13.38, Garcia said. For part-time workers, average wages increased to $10.58 per hour nationally, up from a little more than $10.

Garcia said the wage hikes are part of the company’s two-year, $2.7 billion wage increase plan hoped to “give our associates more opportunities for advancement.” She said the company promoted 700 Hawaii workers last year and converted 400 part-time workers to full-time employees.

Wal-Mart increased wages a first time last April by bumping up minimum hourly rates nationally to $9 per hour. The latest increase will affect about 3,800 Wal-Mart and Sam’s Club employees statewide.

“We believe helping our employees grow and succeed is helping the company grow and succeed,” Garcia said. “Our customer experience scores and associate engagement scores have all gone up, our investment is having a positive impact.”

Garcia did not say how many total employees Wal-Mart has islandwide, but said “most will be positively impacted by the announcement.” Wal-Mart has stores in Hilo and Kona. A manager at the Hilo store declined to comment Tuesday.

The Hilo and Kona stores are the No. 11 and No. 13 largest employers in Hawaii County, state data show.

Wal-Mart also is divvying out $890,000 in bonuses earned in the fourth quarter of the fiscal year to eligible employees Thursday. Garcia said bonuses are awarded storewide to employees based on store performance. She did not know if the Hilo or Kona stores were included in the latest round.

On Tuesday, a cluster of Wal-Mart employees taking a break out front of the Hilo store said they were thrilled when they first heard about the company’s new wage plan.

“I thought it was a joke at first,” said one 27-year-old employee, who has been with the company 10 years.

Another, a 36-year-old employee who’s worked at the Hilo store 20 years, said his hourly wage increased from $10 to $15 in recent months, though it was not immediately clear if that was tied to the latest announcement. He said more money should help him get by.

“We struggle, but it’s life,” he said.

Statewide, minimum wage is $8.50 per hour, set to increase incrementally to $10.10 by January 2018.

Email Kirsten Johnson at kjohnson@hawaiitribune-herald.com.