Workers at top US low-wage firms rely on public assistance, report says
7 hours ago
- #income inequality
- #corporate welfare
- #low wages
- Many workers at large US corporations rely on healthcare and food assistance due to low wages, while CEO compensation grows.
- A report by the Institute of Policy Studies highlights 20 S&P 500 companies with the lowest median wages, collectively employing 6.7 million people.
- Median pay at 75% of these companies is below the income threshold for Medicaid eligibility for a family of three.
- In Nevada, 29.3% of Walmart employees and 48.4% of Amazon workers were on Medicaid in 2024.
- In four states, 10,920 Walmart workers and 9,633 Amazon workers were enrolled in SNAP in 2024.
- Budget cuts from Trump's 'One Big Beautiful Bill' may result in 7.5 million Americans losing Medicaid and 4 million losing SNAP benefits.
- The 'Low-Wage 20' spent $32.5 billion on stock buybacks in 2024, with Lowe's and Home Depot leading.
- If companies redirected buyback funds to wages, a million workers could see pay rise from $29,087 to $59,600.
- Median pay among the 'Low-Wage 20' declined by 4.6% from 2019 to 2024 when adjusted for inflation.
- 45% of eligible Starbucks employees had zero balances in their 401K accounts in 2024, while the CEO earned $95.8 million.
- Average CEO pay across the 20 companies was $18.9 million in 2024, with a CEO-to-worker pay ratio of 899:1.
- Sixteen billionaires are tied to these companies, including Jeff Bezos, Walmart's Walton family, and Howard Schultz.
- Critics argue low wages shift living costs onto taxpayers, calling it 'corporate welfare.'
- Amazon claims its wages are among the best in retail and advocates for a higher federal minimum wage.
- Walmart emphasizes career opportunities and training for employees, including those on public assistance.
- Starbucks highlights benefits like healthcare and tuition coverage, with higher retention rates than retail average.