Business Decisions: Walmart pay raise will benefit hundreds of thousands of workers long term

Walmart announced Thursday it is celebrating the Republican tax reform bill by sharing the wealth with employees.

The retail giant will boost minimum pay to at least $11 an hour starting next month and give some workers a cash bonus. The company is also increasing benefits for new parents.

President Donald Trump and congressional Republicans sold their bill with the promise that lower corporate taxes would mean more money in workers' pockets. So far, some companies are making that happen.

In addition to Walmart, several other companies have said they would be giving out one-time bonuses due to the tax bill, including American Airlines, Bank of America, Comcast, Nationwide and Southwest Airlines. Others, including Visa, Aflac and Nationwide, are increasing matching contributions to employee 401(k) plans.

That's the good news, but it's not all sunny. The same day, Walmart also announced it would close 63 Sam's Club stores over the next month or so, potentially putting more than 10,000 people out of work.

About 50 of the stores will be shuttered for good. The rest will be converted to distribution centers for online sales.

Some stores closed Thursday, including three in Houston and one in San Antonio, and employees have complained on social media they were not given advance notice before showing up for work.

We'll have to wait and see which other stores are affected.

Many of those that have closed are in areas where the competition from other discount chains like Costco is intense. Our local Sam's Club will be spared.

It may seem like Walmart giveth with one hand and taketh away with the other, and perhaps that's how many will see this. But tax cuts only go so far. Any company, including Walmart, must face other business realities, and sometimes that means change that doesn't benefit everyone.

Job loss is never good, but Walmart's minimum pay increase will make life better for thousands of their other workers, and that's a good thing.

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