Wal-Mart boosts pay for 42,300 in Tennessee

A Wal-Mart Neighborhood Market is pictured in this file photo.
A Wal-Mart Neighborhood Market is pictured in this file photo.

Wal-Mart said Tuesday its is investing more than $65.7 million in Tennessee to raise the pay of 42,300 workers at Walmart stores across Tennessee, including 11 superstores and six grocery outlets in metropolitan Chattanooga.

The world's biggest retailer said it is making a $2.7 billion investment over two years in its U.S. workforce to raise wages, provide better training and increase scheduling choice and flexibility. By February, the new full-time average hourly wage in Tennessee will be $13.34 an hour and $10.48 an hour for part-time associates.

Over the past year, Walmart has increased wages in three phases beginning in April by moving its starting rate to at least $9 an hour. In July, the company increased wages for more than 100,000 associates in specialized positions, such as wireless or deli associate, and department managers. In February 2016, Walmart will raise wages for associates hired before Jan. 1, 2016, to at least $10 an hour, $2.75 an hour above the federal minimum wage; hourly managers of the company's more complex and service-oriented departments will earn at least $15 an hour.

Associates hired beginning Jan. 1, 2016, will start at $9 and move to at least $10 after successfully completing the company's new Pathways training program.

The company said it is starting to see a return on its investments. Since the first phase of pay raises went into effect, Walmart's customer experience scores and associate engagement numbers have increased and Wal-Mart also announced during its third quarter earnings that sales at comparable stores in the United States were above year-ago levels for the fifth straight quarter.

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