Staff to Get $530 Million in Bonuses

Wal-Mart Stores Inc., the world's largest retailer, will pay $530 million in bonuses to full-time and part-time staff at its stores after facing mounting pressure to increase wages and improve working conditions.

The company also plans to pay the bonuses quarterly, rather than on an annual basis, Bentonville, Arkansas-based Wal-Mart said in a statement today. The retailer's 813,759 hourly Wal- Mart and Sam's Club employees will be eligible for the payments.

Wal-Mart, the world's biggest private sector employer with 1.8 million staff, has come under attack from labor groups that say it needs to boost wages and health coverage for workers. Politicians, including two Democratic presidential candidates, Senator Barack Obama and former Senator John Edwards, also have criticized the retailer's labor practices.

The company said it plans to recognize 13,400 employees who have worked at Wal-Mart for more than 20 years, with eligible workers getting an extra week's pay.

Wal-Mart will also provide unspecified cash awards to staff who give ``outstanding'' customer service, it said.

Wal-Mart's shares rose 47 cents, or 1 percent, to $47.77 yesterday in New York Stock Exchange composite trading. The stock was up 3.4 percent this year through yesterday, compared with a 1.2 percent increase on the Standard & Poor's 500 index.

``The initiatives unveiled today were heavily guided by associate feedback generated during town hall meetings,'' Wal- Mart said.

Benefits Attacked

Spokeswoman Mona Williams didn't immediately return a message left on her voice mail after regular business hours. A call to Wal-Mart's headquarters was answered with a recorded message saying no extra information on the incentive program would be released ``at this time.''

Wal-Mart Watch, a group critical of the company, and Wake- Up Wal-Mart, funded by the United Food and Commercial workers union, have called for the company to raise wages and health benefits. In a report earlier this month, Bank of America analyst David Strasser said union attacks hurt the company's share performance and ability to open stores ``in a meaningful way.''

source:www.bloomberg.com