BENTONVILLE, Ark. -- A dozen years into a Wal-Mart career, Brad Moore looked forward to earning more money, based on his good performance reviews. That changed last week when the retailer disclosed pay caps it says are intended to encourage people to move up the company ladder.
Moore's wife, Shannon, said that her husband, 38, had applied for a transfer to a better-paying job. She spoke for her husband because he is deaf. The new pay caps took effect first, meaning he would lose about a dollar an hour from the $16.72 he now earns.
``We're upset because you think you've got a plan going, next year's going to be a little bit better and you can start paying for things. And then you get this," said Shannon, 33, a preschool deaf education teacher.
Wal-Mart, with 1.3 million US employees, said it won't cut pay for anyone now above the limits, but they won't be eligible for raises, either. Capped-out workers are eligible for a $400 bonus this year as compensation.
Management professor Peter Cappelli from the University of Pennsylvania said caps are not unusual in retail. ``Firms adjust their compensation packages all the time. The big reason that they might decide to lower the top of the range is that they decide that they're not actually adding much value once you've been there for a long time," Cappelli said. Wal-Mart says that's not the case with its caps.