Sanders Unveils the Stop Walmart Act: Will Walmart Sit Up?

Stop Walmart Act

We wrote about Bernie Sanders’ latest effort to tackle wage disparity at Walmart (NYSE:WMT) on Wednesday. Now we know the details of his new bill, as he unveiled the Stop Walmart Act yesterday. Let’s take a look.

Stop Walmart Act in Detail

The Stop Walmart Act was introduced yesterday. The most important details are as follows: Large companies should be prevented from buying back stock unless all company employees are paid at least $15 an hour; workers should be allowed to earn up to seven days of paid sick leave; CEO compensation should be limited to no more than 150 times the average pay of all workers.

As you can imagine, the final point is also causing the biggest stir.

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The Stop Walmart Act and Corporate Greed

Sanders—who has called Walmart the poster child for corporate greed—highlighted that its CEO Doug McMillon was paid over $22 million in 2017 whilst the average Walmart worker earned a paltry $19,177 by comparison.

To put it in perspective, McMillon was paid 1,188 times that of the average worker at Walmart.

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But despite such a massive disparity, Walmart argues that it has already “increased our starting wages by more than 50% in the last three years and currently have an average hourly total compensation of more than $17.50 an hour […] At the same time, we’ve also added new benefits like paid time off, advanced job training, paid family leave and college for $1 a day.”

As it stands, the company’s minimum wage is $11 an hour.

Taking on Corporate America

The Stop Walmart Act is Sanders’ latest effort at improving incomes for low-earning working Americans. His Stop BEZOS Act was relatively successful; in light of it, Amazon increased its minimum wage to $15 an hour. However, it was bittersweet, as the company cut down some benefits a day later to offset the wage hikes.

Sanders’ next step will see him re-introduce another legislation in January. This bill will aim to raise the national minimum wage to $15 an hour, from the current $7.25 an hour.

Featured Image: Depositphotos /© felixtm