Wal-Mart backs higher minimum wage

NEW YORK - Wal-Mart, the US's largest private sector employer, which has come under fire for the low wages it pays its workforce, is calling on the US government to increase the national minimum wage because it believes its millions of customers are struggling to afford groceries.

Lee Scott, the chief executive of the discount retailing juggernaut, said in a speech to executives at the Bentonville, Arkansas-based company: "The US minimum wage of US$5.15 (NZ$7.30) an hour has not been raised in nearly a decade and we believe it is out of date with the times."Mr Scott, who is not known for his support of the welfare state, added: "Our customers simply don't have the money to buy basic necessities between pay cheques."Congress may take notice of Mr Scott because Wal-Mart is a bellwether for consumer confidence.

It is the world's largest retailer and in the US it employs 1.3 million people and has more than 3,000 stores.

Other American retailers have also reported that higher petrol prices and turmoil caused to swathes of the country by this year's hurricanes are having a negative impact on sales.

A campaign to boost income by Wal-Mart will dumbfound some of its critics, who say the company pays its workforce poverty wages.

There area growing number of advocacy groups, such as Wal-Mart Watch, Wake-Up Wal-Mart and Democracy for America, which saythat while Wal-Mart pays the minimum wage ormore per hour, it employs many of its workers on a part-time basis, depressing their income and forcing them to resort to welfare handouts.

Mr Lee maintained that raising the minimum wage would not significantly increase the group's costs.

Wal-Mart says its full-time average wage is US$9.68 an hour.

Mr Lee's comments about the many difficulties faced by low-income Americans coincide with an unprecedented drive by Wal-Mart to improve its public image.

Wal-Mart announced this week that it was improving its healthcare plan, after past criticism that many of its workers could not afford to participate.

Wal-Mart also announced plans to become more environmentally friendly through measures such as increasing the fuel efficiency of the company's truck fleet.

Wal-Mart will spend US$500m a year to develop techniques to cut greenhouse emissions and conserve energy.

- INDEPENDENT