Walmart, a global retail giant, has recently been scrutinized for its employment practices concerning workers enrolled in the Supplemental Nutrition Assistance Program (SNAP).
A recent social media video highlighted that while Walmart employs many Americans who benefit from SNAP, the company often does not compensate them sufficiently to move them off the government assistance program.
The revelation begs the question: should major corporations do more to support their workers? Let’s unpack this.
Walmart’s Employment of SNAP Recipients
Gigikov delves into the issue of Walmart’s employment practices in her video, highlighting a statement made by Danielle that the company has the highest number of SNAP (Supplemental Nutrition Assistance Program) recipients on its payroll.
Gigikov states,
“Not only is Walmart the largest employer of SNAP recipients they also receive a work opportunity tax credit for each employee who they hire whose on SNAP.”
She further elaborates on the implications of this, saying,
“But the rub is they don’t have to pay those employees enough to come off of SNAP.”
She then sheds light on the financial benefits Walmart gains from this system:
“For each employee that they hire on SNAP they can receive up to a $9,600 corporate tax credit, and there is no limit on the number of people they can receive that credit for.”
This revelation underscores the potential financial incentives for large corporations to maintain employees on assistance programs.
@gigikov #stitch with @Danielle Kirk if you dont already follow Danielle, you must! Shes a fellow #bluedot … #corporatewellfare #eattherich #corporationsareevil ♬ original sound – gigikov
Public Reactions
Many TikTok users expressed their shock and concern about Walmart’s alleged practices, while some highlighted that Walmart screens applicants based on SNAP enrollment.
One user confirmed,
“She is 1000% correct!!!! a WOTC questionnaire is part of the on-boarding paperwork at both Walmart and Sam’s Club.”
Another shared their personal experience, stating,
“The only time I ever qualified for SNAP was the 19 months I worked for Walmart. And it was the only job I got fired from for working over my 5.”
Many criticized such practices, with one user suggesting,
“Companies should be penalized for not paying enough and for their employees needing help from the system.”
Another user highlighted the potential benefits for Walmart, commenting,
“Not to mention that Walmart takes snap as payment so it’s a win for them all around.”
However, some users pointed out that Walmart is not the only company with such practices. One user shared,
“I’ve had employers tell me, can’t you sign up for food assistance or gave me a list of pantries! my employer.”
Another added,
“When I worked at Walmart and Kroger no one was on full time and like 99% were on snap.”
Walmart’s Transformation and Worker Wages
In 2003, the Los Angeles Times highlighted Walmart’s rise to the top, largely on the back of low wages for its workers. Fast forward to 2015, Walmart, the largest private employer in the U.S., announced labor policies that increased worker pay and converted many part-time workers to full-time.
Despite these changes, the average Walmart worker still earns less than $29,000 annually, which is not a living wage in most parts of America. Rick Wartzman, in his book “Still Broke: Walmart’s Remarkable Transformation and the Limits of Socially Conscious Capitalism,” emphasizes that while Walmart has made significant strides, it’s still not enough.
Many workers continue to face tough choices between essentials like food, medicine, and rent. SNAP is the primary provider of benefits for low-income Americans, with 70% of its recipients either working full-time or part-time.
Reports indicate that Walmart and McDonald’s are the top employers of SNAP beneficiaries. Despite Walmart announcing a pay raise for its workers in 2015, the increase was not substantial enough to cover daily expenses for many.
This announcement led to a significant drop in the stock market, causing Walmart to lose $20 billion of its market cap, which might deter the company from considering further pay hikes.
SNAP–A Lifeline for Low-Income Americans
The Supplemental Nutrition Assistance Program (SNAP) aims to reduce poverty and food insecurity by providing food benefits to low-income families. This assistance helps supplement their grocery budgets, ensuring they can afford nutritious food essential for health and well-being.
Despite the assistance from programs like SNAP, many workers, especially those in large corporations like Walmart, continue to struggle to make ends meet.
The challenge remains in ensuring that these workers receive a living wage that allows them to cover their daily expenses without having to rely heavily on assistance programs.
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Sources
- capitalandmain.com/why-walmart-workers-are-still-broke
- fns.usda.gov/snap/supplemental-nutrition-assistance-program
This article was produced and syndicated by Viral Chatter.
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Martha A. Lavallie
Martha is a journalist with close to a decade of experience in uncovering and reporting on the most compelling stories of our time. Passionate about staying ahead of the curve, she specializes in shedding light on trending topics and captivating global narratives. Her insightful articles have garnered acclaim, making her a trusted voice in today's dynamic media landscape.
