Retail giants like Walmart, Amazon, and Kroger are firing shots over rivals' minimum wages. Here's who actually pays $15 an hour

[ElprofesorJuan]

• Companies including Kroger and Amazon are taking shots at rivals like Walmart over employee pay.
• Walmart said this week that it will raise many workers' wages, but does not pay a $15 minimum wage.
• Amazon, Costco, and Target all pay workers at least $15 per hour.
• Visit the Business section of Insider for more stories .

Massive retailers have stayed mostly quiet about looming minimum wage increases.

But they have more to say when it comes to taking shots at the competition.

When Walmart announced on Thursday it was raising some workers' wages, rival grocery chain Kroger was quick to have a response.

"We welcome Walmart's announcement to bring their average wage up to $15 an hour," a company representative told Insider. "At Kroger, our average hourly wage has been $15 an hour since 2019."

"In fact, our average hourly associate rate reaches over $20 an hour when accounting for healthcare, 401(K) and pensions that so many of our competitors choose not to offer," the spokesperson added.

Sniping at Walmart is becoming a bit of a tradition in the retail industry. In December, Amazon decided to take a swing at Walmart when Bloomberg reported that an Amazon warehouse opening drove down a county's average industry compensation.


"What surprises us is that we are the focus of a story like this when some of the country's largest employers, including the largest retailer, have yet to join us in raising the minimum wage to $15," Amazon said in a statement to Bloomberg at the time.

Retailers sniping at each other comes as no surpriseAmazon pays $15 per hour for all warehouse workers.
Noah Berger/Reuters

With a $15 minimum wage already rolling out in many states and cities, some companies are spending less time fighting new federal regulation and more time fighting each other.


"Generally, I think most retailers would prefer wages to be left up to the market rather than legislated for," GlobalData managing director Neil Saunders told Insider.

"However, a lot of retailers have been voluntarily increasing wages over the past few years so an increase to $15 is now not seen as such a big deal by some," Saunders continued. "Indeed, many have raised, or are in the process of delivering on promises to raise, wages to $15."

Higher pay for entry-level positions, as well as better benefits and other perks, typically means companies can hire more engaged workers who are less likely to quit. Retailers raise workers' pay because of regulation, but also to better compete with rivals.

"One of the challenges for any retailers is turnover," Moody's analyst Charlie O'Shea told Insider in October.


"Amazon has very liberal benefits programs, even for part time employees," O'Shea added. "Walmart has got college covered. There's all sorts of bells and whistles that the retailers at the top end of the food chain have been able to do because they can afford it."

The industry in-fighting can also help companies distinguish themselves from competitors. With Walmart, Kroger, and Amazon all going on massive hiring sprees in 2020, having the reputation of being a good place to work can help attract talent to stores and warehouses.

Who actually has the highest minimum wage?
Some major companies actually pay all workers at least $15, while others offer a wider range. Here is how some of the biggest players measures up.

Walmart minimum wage: $11 per hour
On Thursday, Walmart announced that on March 13 it will roll out a raise that brings 425,000 associates' pay to between $13 and $19 per hour. As a result, the average pay for nearly half of hourly workers in the US will reach $15 per hour, according to a Walmart representative.

All warehouse workers at Walmart make at least $15 per hour. At this point, Walmart's minimum wage will remain at $11 per hour.

"Those people that we're raising wages for tend to have been with us for a longer period of time than someone that might be earning the entry wage," CEO Doug McMillon said on a call with investors this week. "We're trying to ... create this ladder of opportunity, providing an opportunity for people when they start with the company to build a career like so many of us already have."


Costco minimum wage: $15 per hour
Costco raised its minimum wage to $15 in 2019. At the same time, the company increased pay for supervisors and introduced paid bonding leave for all hourly employees.

The retailer has been celebrated by many workers as one of the best places to work in the industry.

"The best part is all the perks - guaranteed hours, benefits, time and a half on Sundays, free turkeys at Thanksgiving, four free memberships, a livable wage," an employee with six years of experience told Insider in 2018.

Target minimum wage: $15 per hour
In June, Target raised its minimum wage to $15, up from $13. The raise was part of a multi-year effort, with the company promising in 2017 that it would reach a $15 minimum hourly wage by the end of 2020.
Everything we aspire to do and be as a company builds on the central role our team members play in our strategy, their dedication to our purpose and the connection they create with our guests and communities," Target CEO Brian Cornell said in a statement.

Kroger minimum wage: Varies by region
While Kroger says its average hourly wage has been $15 since 2019, some workers make less than that. Entry-level pay varies by region and job position.

"Since the start of the pandemic, Kroger has proudly invested over $1.5 billion to safeguard and reward our associates and committed nearly $1 billion to secure pensions for tens of thousands of our associates across the country," a representative said in a statement.

Kroger has also faced backlash recently for closing stores in Seattle and California due to "hero pay" regulation that would have temporarily increase workers' wages by $4 per hour.


"The biggest issue for many right now is dealing with local ordinances mandating temporary hero pay boosts and bonuses," Saunders said. "This is causing a lot of issues and a patchwork of different wage structures. Many of the rules are illogical and hard to implement."

Amazon minimum wage: $15 per hour
Amazon raised its minimum wage to $15 an hour in 2018.

"At Amazon, we believe $15 an hour is the minimum that anyone in the U.S. should be paid for an hour of labor," Amazon said in a statement to Insider on Friday. "That's why, since 2018, every Amazon employee has earned a starting hourly wage of at least $15."

"It's also why we're calling on Congress to raise the federal minimum wage to $15 an hour and urging other major corporations to increase wages to this level," the statement continued. "We're pleased that multiple companies have taken this important step - which will help workers and their families, communities and our overall economy - and hope more will follow suit."




Most retailers will be at 15 within a few years....I agree with 15 dollar minimum wage...Prices have not increased significantly over the years for merchandis anyways..

 

[Knight In TN]

Why would some massive companies that employ a lot of unskilled labor be pushing for the federal minimum wage to be increased? It’s simple... they know it will help kill off some of the small businesses they compete with.

This should tell everyone pushing for $15 all they need to know. These companies want it to be harder to start businesses to compete with them and they want existing competition to fail.

 

[goodknightfl]

Walmart gave 1/2 its workers raises, and reduced it's work force per store by 1/3 or more. Less beginning jobs for people, but those who work will get more money.

K in Tn is right on what Big business wants, They are making it harder n harder for small, and start up companies to exist. I am slowly but steadily working myself back to minimum wage. I can't raise my prices enough to maintain where I am now. Most of my customers are on fixed incomes, I can't jump their prices the 10 to 15% I need to do, when they get 1.2% raise and their Medicare goes up 5 or 6%, and eats 1/3 to all of that raise.

 

[sk8knight]

You know who else is going to suffer from this: skating rinks, bowling alleys, go kart tracks, miniature golf, etc. These types of places provide teens with their first jobs and start at minimum wage with small raises. They survive because they are cheap entertainment choices. The margins are very thin and the owners aren’t raking in millions; some of them are lucky to hit 6 figures on a good year. This might just be the push that sends more of them over the edge.

 

[ElprofesorJuan]

You know who else is going to suffer from this: skating rinks, bowling alleys, go kart tracks, miniature golf, etc. These types of places provide teens with their first jobs and start at minimum wage with small raises. They survive because they are cheap entertainment choices. The margins are very thin and the owners aren’t raking in millions; some of them are lucky to hit 6 figures on a good year. This might just be the push that sends more of them over the edge.

I miss all those places..Sadly all those places were dying Pre covid..All those places you named have closed down. We use to go always 12 strong.Its where we always went. We always were friends with owners .I agree with what you say there should be money to help those places pay for the extra salary rise. Like a subsidy for small companies.

 

[Knight In TN]

I miss all those places..Sadly all those places were dying Pre covid..All those places you named have closed down. We use to go always 12 strong.Its where we always went. We always were friends with owners .I agree with what you say there should be money to help those places pay for the extra salary rise. Like a subsidy for small companies.

Nooooo...

Subsidizing them is the wrong conclusion.

 

[sk8knight]

I miss all those places..Sadly all those places were dying Pre covid..All those places you named have closed down. We use to go always 12 strong.Its where we always went. We always were friends with owners .I agree with what you say there should be money to help those places pay for the extra salary rise. Like a subsidy for small companies.

They’re not all closed just running on fumes. I’ve done nearly every job in a skating rink and I’m going to tell you that most of the jobs in that industry should never be expected to produce a living wage. Thought about buying a couple of rinks but that’s a bad business decision right now. The idea that every transaction of someone’s services for money should add up to a living wage is simply idiotic.

 

[DaShuckster]

They’re not all closed just running on fumes. I’ve done nearly every job in a skating rink and I’m going to tell you that most of the jobs in that industry should never be expected to produce a living wage.

Even back in their hay days, skating rinks never hired full-time people and you know it. They were always staffed by a few high school and college age kids.

Heck, if you'd been around in 1910, I could see you whining about how the minimum wage was forcing poor livery stables out of business.

 

[sk8knight]

Even back in their hay days, skating rinks never hired full-time people and you know it. They were always staffed by a few high school and college age kids.

Heck, if you'd been around in 1910, I could see you whining about how the minimum wage was forcing poor livery stables out of business.

I was a full-time manager at a rink so, no, I don’t know it. You’re right that the rinks are largely staffed by high school and college-aged kids. In the greater scheme of things, these are important jobs to have but are by no means jobs that should pay a living wage. Your $15/hour cares nothing about that. You are perfectly fine with eliminating those jobs as long as it resolves your guilt that some mother that you don’t know is trying to raise a family on a minimum wage job. And the businesses that go along with it. And the skate suppliers and the portion of food supplies and insurance and everything else that arbitrarily plucking that thread out of the economy causes. Pluck enough threads and it unravels.

But why do I bother, as long as Team D is pushing it, you’re on board 110%.

 

[Nautiknight]

Even back in their hay days, skating rinks never hired full-time people and you know it. They were always staffed by a few high school and college age kids.

Heck, if you'd been around in 1910, I could see you whining about how the minimum wage was forcing poor livery stables out of business.

Minimum wage started in 1938. So, your analogy is false.

 

[Nautiknight]

I have been vocal here about these issues. As a small business owner I applaud these giant corporations for paying their crew more money. That's how the free market works.

Those guys will kill off entry level work especially for high school kids. That's a fact. As for specialty retail forced authoritarian wage increases will harm small businesses every where. All those cool stores in your favorite village , retro downtown and such will be impacted negatively. Several things are likely to happen . Prices will go up, businesses will try to operate with fewer jobs to manage labor costs ( people will lose jobs) and If those things don't help manage the losses, the businesses will shutter their doors.

So, here is the thing. I love that strip on 3rd Avenue at New Smyrna Beach. Amazon, Walmart and Target can not occupy that space and imagine if they tried? it would absolutely suck and be boring like Target's surf shop.

I find the left who want diversity in the work place and such ,yet they have no problem destroying small businesses who are truly organic diversity in the market place with rediculous minimum wages. The last time I checked high school kids living at home and college kids supported by their parents don't need a livable wage . These are the overwhelming number of low wage workers. When some of you guys invest your own money in your own businesses and sign the front of a paycheck , then you can come talk to me about how great $15 an hour is for your company especially if you are in tourism, food services and retail.

 

[DaShuckster]

I was a full-time manager at a rink so, no, I don’t know it. You’re right that the rinks are largely staffed by high school and college-aged kids. In the greater scheme of things, these are important jobs to have but are by no means jobs that should pay a living wage.

Depending on when you managed that rink, your part-time employees made somewhere between $2 and $3 an hour. Let's say it was $3. Given inflation, that same amount today would be around $9.50. Today's federal minimum wage hasn't been raised in 12 years and stands at $7.50.

So remind me again who are the ones being shafted, the employees or the employers?

 

[Nautiknight]

Depending on when you managed that rink, your part-time employees made somewhere between $2 and $3 an hour. Let's say it was $3. Given inflation, that same amount today would be around $9.50. Today's federal minimum wage hasn't been raised in 12 years and stands at $7.50.

So remind me again who are the ones being shafted, the employees or the employers?

You forget a few things. Nobody is forcing anyone to take a job anywhere. if you don't want to work at a skating rink handing out skates for $7.50 per hour , you don't have to apply and take said job. Second, the free mark being what it is , let's say the skating rink job only pays $7.50 and you are a high school kid looking for a summer job . Then you see or hear about a job at my place paying $9.00 an hour working weekends. Where do you apply ? I hire high school and college kids and I pay more than minimum wage starting some of my people make $12 or $13. I pay more because I want better quality applicant.

Point is some jobs like the skating job are part time low skilled jobs that often young people get for after school or weekends and they pay accordingly. If you are 35 years old and have 4 kids ,you better be not applying for a skating rink job. If you are applying for said job ,it's not the wage or the job is the problem here .

 

[DaShuckster]

You forget a few things. Nobody is forcing anyone to take a job anywhere. if you don't want to work at a skating rink handing out skates for $7.50 per hour , you don't have to apply and take said job.

That's your comeback?

Hell, that brilliant line against the minimum wage would have worked back when the very first minimum wage act was passed back in 1938 when workers had to be paid a whopping $0.25.

President Roosevelt warned the American people in a fireside chat the night before the bill's signing, "Do not let any calamity-howling executive with an income of $1,000 a day, tell you that a wage of $11 a week is going to have a disastrous effect on all American industry."

What was true back in 1938, is still true today.

 

[sk8knight]

The ultimate kicker to this is that we are basically begging for more unskilled workers to come into the country with our new immigration policy at the same time that we are enacting wage laws that will eliminate the only jobs they can qualify for in the legal economy. It’s the ultimate cruelty; to wave the American dream in front of people knowing the economy cannot support them and then literally force them into a black market labor pool because it is evil and racist to keep them out while at the same time demonizing people who give them black market jobs once they are already here.

 

[goodknightfl]

I don't think many people have a problem with a increase in minimum wage of a dollar or 2, but doubling it is a bit over the top. I would be fine with raising it to $9 immediately, then putting in an index for inflation the same size as Social Security gets. That will never happen because, Politicians like the political football it is.

 

[sk8knight]

I don't think many people have a problem with a increase in minimum wage of a dollar or 2, but doubling it is a bit over the top. I would be fine with raising it to $9 immediately, then putting in an index for inflation the same size as Social Security gets. That will never happen because, Politicians like the political football it is.

Why would you create a self-feeding loop by indexing wages to inflation? Wages are one of the drivers of inflation.

 

[fried-chicken]

If you can't afford to pay someone $15 for an hour of human labor in 2021 then your business is dogshit and youre only surviving on the fact that you can exploit people who don't know there are better paying options out there.

 

[DaShuckster]

I don't think many people have a problem with a increase in minimum wage of a dollar or 2, but doubling it is a bit over the top. I would be fine with raising it to $9 immediately, then putting in an index for inflation the same size as Social Security gets. That will never happen because, Politicians like the political football it is.

I actually like the idea of getting it raised and then implement some kind of index for inflation as you suggest. The rate hasn't been raised in the past 12 years! And for all the hand-wringing about $15, the Biden plan looks at modest increases over time with the goal of $15 later on this decade.

The ironic thing is some of you guys want to reminisce about the good ole days when the minimum wage was a mere $2.50. The wage earners back then had more buying power than current minimum wage earners do now.

 

[fried-chicken]

You're literally talking about almost any strip mall business. Hell at lot of unskilled landscape labor. The mom and pops shops can't compete with all the automation of Amazon or Walmart.

You don't care these people can lose their jobs and owners lose their businesses. Creates more dependence on government which the lefties love.

If you can't afford to pay $15 for 60 min of a human being's time your business is dogshit.

 

[Knight In TN]

If you can't afford to pay $15 for 60 min of a human being's time, your business is dogshit.

Or your business is new. Or you live in a poorer area, like the gulf states. Or you operate on razor thin margins.

You might think you’re helping poor people by wanting to more than double their wages, but businesses WILL lay these people off, and the ones who can’t operate without unskilled labor will end up going out of business. But you don’t care about that.

 

[fried-chicken]

Or your business is new. Or you live in a poorer area, like the gulf states. Or you operate on razor thin margins.

You might think you’re helping poor people by wanting to more than double their wages, but businesses WILL lay these people off, and the ones who can’t operate without unskilled labor will end up going out of business. But you don’t care about that.

Please tell me why a mom and pop business that pays workers $8 per hour is worth saving when Wal-Mart is paying $15. It use to be that Wal-Mart was destroying high paying jobs and that sucked but now I'm supposed to care that they are destroying jobs that pay worse than they do?

Sorry to the mom and pops that go under. I would suggest lowering your distributions until you are making 30k per year and if you can't do that then get a job at Wal-Mart.

A mom and pop making 70-100k and saying they can't pay workers more than $8 per hour is simply exploiting the workforce.

 

[Knight In TN]

If you can't afford to pay someone $15 for an hour of human labor in 2021 then your business is dogshit and youre only surviving on the fact that you can exploit people who don't know there are better paying options out there.

Lol... They aren’t qualified for better paying options. Everyone making minimum wage knows there are better paying jobs, and nearly all of them will have a better paying job within a few years.

This myth of adults with children to feed who are living on minimum wage for years and years is absurd. Anyone who’s making minimum wage for a year or more either has no work skills or a horrific work ethic.

Your participation trophy upbringing is showing.

 

[fried-chicken]

Lol... They aren’t qualified for better paying options. Everyone making minimum wage knows there are better paying jobs, and nearly all of them will have a better paying job within a few years.

This myth of adults with children to feed who are living on minimum wage for years and years is absurd. Anyone who’s making minimum wage for a year or more either has no work skills or a horrific work ethic.

Your participation trophy upbringing is showing.

Read the thread title. Unskilled workers are making $15 an hour at many places. If a little shitty business relies on $8 labor to stay in business then what value are they bringing to society other than to the owners?

 

[Knight In TN]

Please tell me why a mom and pop business that pays workers $8 per hour is worth saving when Wal-Mart is paying $15. It use to be that Wal-Mart was destroying high paying jobs and that sucked but now I'm supposed to care that they are destroying jobs that pay worse than they do?

Sorry to the mom and pops that go under. I would suggest lowering your distributions until you are making 30k per year and if you can't do that then get a job at Wal-Mart.

A mom and pop making 70-100k and saying they can't pay workers more than $8 per hour is simply exploiting the workforce.

I’m sure you probably hate billionaires, but you’re suggesting that small businesses should die off because the Waltons - who started off as a mom and pop - can pay $15 now (while taking advantage of expensive automation that’s let them employ fewer people per store) and pull the ladder up behind them. This policy will further enrich the Walton family and Jeff Bezos, and expand the gap between the top and bottom, but it plays well to stupid people like you.

 

[Knight In TN]

If government arbitrarily raising wages is all it takes to lift people out of poverty, why is there any poverty anywhere?

 

[fried-chicken]

If government arbitrarily raising wages is all it takes to lift people out of poverty, why is there any poverty anywhere?

Helps some people. Mostly those who work at business that are actually strong and are being paid 12 or 13 already. Those companies could have afforded to pay 15 years ago but don't because they didn't have to.

 

[fried-chicken]

I’m sure you probably hate billionaires, but you’re suggesting that small businesses should die off because the Waltons - who started off as a mom and pop - can pay $15 now (while taking advantage of expensive automation that’s let them employ fewer people per store) and pull the ladder up behind them. This policy will further enrich the Walton family and Jeff Bezos, and expand the gap between the top and bottom, but it plays well to stupid people like you.

If you need to pay $8 an hour in order for your business to survive you are never going to compete with anyone let alone Amazon. It's a dogshit business that only exists because of exploitive pay. If Walmart and Amazon can afford to pay $15 while simultaneously being the cheapest and most convenient merchants then why do I care about the mom and pop? My ideal situation is to tax the **** out of these businesses and redistribute wealth so they can't afford to so easily pay $15 per hour but that's never going to happen so this is the next best thing. They are flush with cash because republicans refuse to tax the ultra wealthy.

 

[Knight In TN]

If you need to pay $8 an hour in order for your business to survive you are never going to compete with anyone let alone Amazon. It's a dogshit business that only exists because of exploitive pay. If Walmart and Amazon can afford to pay $15 while simultaneously being the cheapest and most convenient merchants then why do I care about the mom and pop? My ideal situation is to tax the **** out of these businesses and redistribute wealth so they can't afford to so easily pay $15 per hour but that's never going to happen so this is the next best thing. They are flush with cash because republicans refuse to tax the ultra wealthy.

You have absolutely no idea what you’re talking about and I’m glad you’re in no position of authority.

 

[fried-chicken]

You have absolutely no idea what you’re talking about and I’m glad you’re in no position of authority.

Dispute it then. Why do I care about a mom and pop that 1. Can't compete by providing a better service and 2. Can't afford to pay better wages?

That business is of no use to the American worker.

 

[Knight In TN]

Dispute it then. Why do I care about a mom and pop that 1. Can't compete by providing a better service and 2. Can't afford to pay better wages?

That business is of no use to the American worker.

Choice in the marketplace is critical to quality.

They do provide better service and better products in a huge number of cases. Have you been to Walmart lately? Do you understand why they’ve raised their wages? Because they’re more than happy to replace 10 cashiers making $7.25 an hour with 1 watching 10 self checkout lanes making $12. They’ve just reduced labor cost from $72.50 an hour to $12, and get to brag about raising employee wages. Meanwhile, fewer people are making money, but you’re hailing them as some champion of fair wages. What a joke.

Please explain how arbitrarily raising wages is going to lift people out of poverty. If it was actually going to work I would be in favor of it, but it won’t. It never has, and that’s why there’s no minimum wage of $100k per year. You can’t just make unskilled labor worth more than its actually worth. You can force someone to pay more for it, but they’ll just buy less and figure out how to get by.

 

[sk8knight]

You think Gamestop can survive paying $15? When Amazon can use automation and robotics

Somewhat surprised that GameStop hasn’t gone the way of Blockbuster with the ability to download games to your console.

 

[sk8knight]

You have absolutely no idea what you’re talking about and I’m glad you’re in no position of authority.

Unfortunately he has a vote and I’m sure it goes to people that are espousing Marxist policies that have only ever resulted in crushing poverty and nearly total losses of individual freedom and Liberty.

 

[fried-chicken]

Choice in the marketplace is critical to quality.

They do provide better service and better products in a huge number of cases. Have you been to Walmart lately? Do you understand why they’ve raised their wages? Because they’re more than happy to replace 10 cashiers making $7.25 an hour with 1 watching 10 self checkout lanes making $12. They’ve just reduced labor cost from $72.50 an hour to $12, and get to brag about raising employee wages. Meanwhile, fewer people are making money, but you’re hailing them as some champion of fair wages. What a joke.

Please explain how arbitrarily raising wages is going to lift people out of poverty. If it was actually going to work I would be in favor of it, but it won’t. It never has, and that’s why there’s no minimum wage of $100k per year. You can’t just make unskilled labor worth more than its actually worth. You can force someone to pay more for it, but they’ll just buy less and figure out how to get by.

I like self checkout. It's better

 

[Knight In TN]

I like self checkout. It's better

Great. I do too.

Automation is already making it harder for unskilled labor to find jobs. Raising the minimum wage to $15 will make it much much more difficult. Just understand that by raising min wage like that will mean that finding work will be nearly impossible for young people, people with special needs, disabled people, and elderly people.

You think you’re on the side of caring about poor people, but the policies you favor will hurt them tremendously.

 

[DaShuckster]

Somewhat surprised that GameStop hasn’t gone the way of Blockbuster with the ability to download games to your console.

It's well on its way to joining Blockbuster.

 

[firm_bizzle]

Walmart offers a ton of benefits right?

 

[fried-chicken]

Great. I do too.

Automation is already making it harder for unskilled labor to find jobs. Raising the minimum wage to $15 will make it much much more difficult. Just understand that by raising min wage like that will mean that finding work will be nearly impossible for young people, people with special needs, disabled people, and elderly people.

You think you’re on the side of caring about poor people, but the policies you favor will hurt them tremendously.

I'm on the side of not slowing automation in the name of saving low paying jobs. We will eventually need to tax these companies that add ever accelerated automation and eliminate jobs but until half the country realizes this is the only solution that doesn't end in full oligarchy we aren't going to solve the problem by allowing the 40 year old office supply store to keep it's head above water for another 5 years on the back of poverty level pay.

 

[firm_bizzle]

You think Gamestop can survive paying $15? When Amazon can use automation and robotics

Why are we enabling businesses to underpay their employees?

 

[Knight In TN]

I'm on the side of not slowing automation in the name of saving low paying jobs. We will eventually need to tax these companies that add ever accelerated automation and eliminate jobs but until half the country realizes this is the only solution that doesn't end in full oligarchy we aren't going to solve the problem by allowing the 40 year old office supply store to keep it's head above water for another 5 years on the back of poverty level pay.

Please do yourself a favor and read Basic Economics by Thomas Sowell. You could learn quite a bit.