Profits are 'soaring' for large retailers—but frontline workers are barely earning more (via CNBCMakeIt)
A new report finds that while Amazon, Dollar General and Walmart bring in record profits, they have not provided hazard pay for frontline workers in months.
Kena Betancur | VIEW press | Corbis News | Getty ImagesAnew report from the Brookings Institutefinds that while top retailers' profits have "soared" during the coronavirus pandemic, pay for frontline workers has barely budged.Brookings analyzed the earnings and compensation of frontline employees at 13 of the biggest retailers in the U.S. between March 13 and November 19 of this year, including Albertsons, Amazon, Best Buy, Costco, CVS Health, Dollar General, Home Depot, Kroger, Target and Walmart. While the companies in the report made an average of 39% more in profit this year compared to 2019, pay for their essential workers increased by just 10% on average, or $1.11 per hour, over the course of the pandemic.
And while some of these companies continue to make record profits, it has been over 130 days, on average, since many frontline workers have received any hazard pay at all, Brookings reports. Most of the companies have "offered only modest or negligible extra compensation to workers," even as the number of Covid-19 cases continues to rise across the country.
Best Buy, The Home Depot and Target are outliers, according to the report. These retailers provided the most generous temporary and permanent pay increases and bonuses to workers, paying them $2.53 more per hour on average since March. Best Buy and Target both permanently increased their minimum headtopics.com
wages to $15 per hour, and The Home Depot permanently increased wages by around $1.25 per hour.That's compared to CVS Health, which only offered a bump of $0.21 per hour. A CVS Health spokesperson noted that the company gave "appreciation bonuses" to nearly 180,000 workers, as well as $1,000 emergency grants to 3,000 workers. It also gave 24 hours of paid sick leave to part-time employees during the course of the pandemic.
Some of the least generous companies had the largest profits: Amazon and Walmart increased profits by of 53% and 45%, respectively, compared to last year. Their workers received an extra $0.95 per hour (Amazon) and $0.63 per hour (Walmart) since March. That is a 6% increase.
"Meanwhile, Amazon and Walmart's stock prices are up 65% and 41% since the start of the pandemic, adding more than $70 billion to the wealth of Jeff Bezos, Amazon's CEO, and $45 billion to the Walton family, the country's richest family, who own more than half of Walmart's shares," the report says.
Rachael Lighty, an Amazon spokesperson, called the Brookings study "flawed" and said it did not provide an accurate portrayal of how Amazon treats its employees, noting it offers employees nationwide astarting wage of at least $15 per hour, which is more than twice the federal minimum wage. headtopics.com
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MakeIt MakeIt Large companies lose their connection to their employees which means they stop caring about them and sharing with them the wealth that THEY generated. MakeIt They should motivate them money wise MakeIt And we’re surprised!? Greedy executives will always remain greedy executives!! Walmart Target costcocanada amazon kroger JeffBezos
MakeIt MakeIt We complain about being in a deflationary spiral....so, just raise wages. MakeIt Essential workers, not frontline. MakeIt Yep they take away our hazard pay of 400.00 extra a month and give a dollar raise instead how’s that for being ripped off as a big box associate. You guys should really dig in the story when the large companies Pat themselves on the back for what they do for essential workers
MakeIt they should unionize..horrible how these corporations are making so much money and not paying there employees..also you have small businesses in trouble as the companies keep getting bigger MakeIt In apt I'm heated to prove I was unconscious at work in 90s? to Boss Chief? 'What now we all said to Chief'? We mean be more sleepong or call us right way, post card invite in envelope, Union Shoppe.*Hsg ins $?*LOL,No 🇺🇸PRES BUSH in air, he 'came down' was cool to say.💣w 2others
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MakeIt Low wages are great because it helps these corporations with their profit margins AND it allows these workers to be eligible for government assistance. That’s like having two sources of income to buy growth stocks with. MakeIt These companies are going to have to step up and make things right for these hardworking Americans.
MakeIt One “stimulus” survival check is wholly INADEQUATE! BAIL OUT PEOPLE FIRST! Trickle up. MILLIONS are out of $, losing homes. DIRECT $ TO PEOPLE NOW! 3K/ mo to stay home. Retroactive. Moratorium on rent / mortgages JoeBiden KamalaHarris TheDemocrats SenateDems HouseDemocrats MakeIt Capitalism at its worst. Profits should not only be shared with shareholders but also with employees at all levels not just management. Major reforms and structural changes in policy should be initiated.
MakeIt yes, that's working as intended MakeIt Immoral MakeIt Some healthy shopping there MakeIt Sad MakeIt Our system (and your network propagates this) is designed for stock ownership not company employment. MakeIt Completely ignored the war on small business ! MakeIt thanks MakeIt This is where companies could show some social responsibility through investing in employee development and community projects.
MakeIt Typical MakeIt Please if you can support anything helps. I am a single father of 2 girls❤️❤️: gofundme MakeIt This is how rich people become billionaires. On the backs of thousands and thousands of workers. Money equals time/labor. MakeIt Meanwhile Walmart has given four bonuses to all employees this year and increased pay 6%. Do you think most other salaries have increased 6-10%? No, millions are still unemployed and millions are likely to be furloughed over the coming weeks.
MakeIt Somethings never change unfortunately 😑 MakeIt This is nothing new. To be fair, both Walmart and Amazon raised their entry level wage and giving front line workers bonuses. Hopefully this is the beginning MakeIt JoeBiden would love to unionize everyone. Kill off small business and offshore merchandise fulfillment. This Nirvana of elites and trucks with Chinese Characters on the side is his Newest Normal. tt:ckchumley SaraCarterDC lizpeek
MakeIt CRIMINAL MAN MakeIt Workers doing great under trickle down economics!!! 🙃 MakeIt MakeIt MakeIt MakeIt They should all be receiving hazard pay MakeIt Capitalism is working as designed...stop with this kind of nonsense... MakeIt Employee stock plan would be a great incentive. MakeIt Greedy capitalist🐖🐖🐖
MakeIt Truly a new story no one has ever heard. Not in this business community. Not in the ol' Greatest Country in the World. Over here, soaring profits means everybody wins! 😃 I'm Luvin' It! MakeIt And MakeIt thanks for this news MakeIt Yea that’s how it’s suppose to work , labor cost cut into profits which hurt shareholders
MakeIt Obviously another giant Tax Cut is in order, Actually maybe hourly workers can donate a portion of their meager earnings to our Esteemed Billionaires Trickle down MakeIt But They still have a job... there are a lot of ppl out there that would kill to have their job back MakeIt The homeless aren’t dropping dead in LA / SD Or even filling our hospitals , ITS ALL BULLSHIT !
MakeIt It’s all about bullshit with CNBC ! MakeIt Any people wonder why socialism is becoming more popular. MakeIt And that my fellow Americans is what the Economy is all about. Big profits for Corporations and the big middle finger to the skys for the working class. MakeIt nice MakeIt 😎👁💵 MakeIt Do they have jobs?
MakeIt 내 아들아 나의 법을 잊어버리지 말고 네 마음으로 나의 명령을 지키라 MegaWordVigil