Wal-Mart Raises Wages: Good Public Relations or Good Business?

"The company is also implementing new pay ranges, which are wider than many other retailers, with the maximum being near the top of the market in many regions. Pay ranges are used by many other retailers, and are already used for management and hourly positions at Wal-Mart and SAM’S CLUB home offices. Associates wanting to move beyond their pay maximum may apply for a number of career opportunities in the company. No associate’s salary will be reduced as long as the associate remains in his or her current job. " (link to full press release)

I don't know why Wal-Mart would make this a press release except that it is a nice Public Relations move against their ongoing bad press around labor practices.  I'm sure they are trying to stave off the kind of big box minimum wage increases that the Chicago City Council aimed right at them.  It should be interesting to see if this works.  As a shareholder, I think that paying employees more means better quality workers and better local relations.  I hope this is more than just PR. 

I'm not trying to keep an eye on Wal-Mart's behavior single handedly.  Found these folks at Wal-Mart Watch seem to do a pretty good job. 

Disclosure: I own Wal-Mart(WMT); it is one of my larger positions.  I am long Wal-Mart shares and short January 2007 - 45 strike calls.  This position is also known as a buy/write.

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