Walmart Says It Will Pay for Its Workers to Earn College Degrees
Walmart Says It Will Pay for Its Workers to Earn College
Degrees
By Michael Corkery May 30, 2018
Walmart announced plans on Wednesday to offer subsidized
college tuition for its 1.4 million workers in the United States, joining a
growing list of companies that are helping employees pay for higher education
as a perk in a tight labor market.
The giant retailer will pay tuition for its workers to
enroll in college courses — online or on campus — to earn degrees in either
supply chain management or business, company officials announced at Walmart’s
annual shareholder meeting in Bentonville, Ark.
Full and part-time Walmart workers can use the subsidy to
take courses at the University of Florida; Brandman University in Irvine,
Calif.; and Bellevue University in Bellevue, Neb.
The three universities were chosen because of their high
graduation rates, particularly among part-time students, and their experience
with those already in the work force, Walmart executives said. The employees
will not be obligated to continue working for Walmart after they get their
degrees, and must put up only $1 a day toward the cost of classes.
“We feel like this is another step forward in investing
in our associates,” said Julie Murphy, an executive vice president in Walmart’s
United States operation.
Walmart, the country’s largest employer, introduced the
tuition subsidy as it seeks ways to retain workers at a time of low
unemployment. Employers like Starbucks and Amazon also offer tuition support.
Walmart, which has faced criticism over low pay and poor
working conditions, is also trying to burnish its image while expanding its
presence in more upscale markets online.
This year, Walmart raised its base wage $2, to $11 an
hour, and expanded its maternity and family leave benefits. The company has
also begun offering lower-level store managers more job training programs
called “Walmart Academies,” where employees learn basic management skills and
graduate in ceremonies wearing caps and gowns.
Thom Arnold, 32, who has been working at Walmart since
high school, said he would “love to take advantage” of the tuition subsidy.
Mr. Arnold, who was chosen by his store in Staunton, Va.,
to attend the shareholder meeting, said he would like to pursue a career in
cybersecurity.
“I’d like to advance into something bigger,” he said.
Activists groups — including Organization United for
Respect Walmart, which was staging demonstrations in Bentonville through the
week — argue that the company should raise hourly wages to at least $15, a
figure that Walmart’s rival Target has committed to. Another group, Making
Change at Walmart, a project affiliated with the United Food and Commercial
Workers International Union, said it was skeptical of Walmart’s promises and
pointed out that the company had announced its wage increases the same day that
word spread of the planned closing of 63 Sam’s Club stores.
“At best, if this is more than a publicity stunt, then
Walmart is merely playing catch-up to other multibillion-dollar companies when
it comes to providing benefits to its workers,” the group’s director, Randy
Parraz, said in a statement.
Walmart officials did not provide an estimated cost for
the tuition subsidy, but they expected that about 68,000 employees would
probably enroll during the first five years, based on those who have expressed
interest and an analysis of similar programs in other industries.
The University of Florida is probably the best known of
the universities in the Walmart program. Brandman University, which has
multiple campuses in California and an online curriculum, has a focus on
Hispanic students. The billionaire investor Joe Ricketts, who founded TD
Ameritrade, is among Bellevue University’s benefactors.
Walmart said its goal was to help employees obtain a
college degree without having to take out loans. Walmart workers enrolled in
the program would not be required to pay for their education upfront and seek
reimbursement later. When Starbucks first announced its tuition subsidy and a
partnership with Arizona State University in 2014, the company was criticized
for pushing the risk onto its workers by making them pay up front.
Walmart workers will qualify for the benefit after 90
days of employment and will not be penalized if they leave the company before
finishing their studies.
The tuition subsidy will apply only to associate and
bachelor’s degrees in two programs that are somewhat related to retail work,
but the areas of study could be expanded to other areas in the future, Walmart
officials said.
A version of this article appears in print on May 30,
2018, on Page B3 of the New York edition with the headline: Walmart to
Subsidize Cost of College Tuition For Its U.S. Workers.
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