Lowe’s hourly employees to get pay increases and bonuses ahead of the holidays

Ahead of the holiday season, Lowe’s announced on Wednesday a combined $370 million in bonuses and wage hikes for the retail giant’s hourly employees.

The Mooresville-based home improvement retailer is making a $170 million wage increase for hourly workers and $200 million in hourly bonuses, CEO Marvin Ellison said during the third quarter earnings call.

“I am very pleased that we are once again able to award a discretionary bonus because our performance is tracking ahead of our expectations,” Ellison said.

Lowe’s reported better-than-predicted net income of $154 million in the third quarter that ended Oct. 28. Total sales were $23.5 billion compared to $22.9 billion in the third quarter of 2021, and comparable sales increased 2.2%. Comparable sales for the U.S. home improvement business increased 3% for the third quarter.

Hourly employees will receive bonuses of up to $1,000 for eligible full-time workers and up to $500 for eligible part-time workers, Joe McFarland, Lowe’s executive vice president of stores, said during the call.

“We are focused on becoming the employer of choice in retail, to build their careers,” McFarland said. “That means providing good, stable jobs with comprehensive benefits, competitive wages and bonus opportunities.”

Employee pay increases vary based on current wage, tenure and the market they work in, Ellison said during a roundtable discussion with local news outlets following the earnings call.

Wage increases for hourly store workers are designed to ensure more tenured employees receive market-competitive wages, Ellison said during the call.

The pay hikes go into effect Dec. 10, and bonuses will be in employees’ Dec. 2 paychecks, company spokesman Steve Salazar said.

Lowe’s and bonuses

Just two months ago, Lowe’s gave out $55 million in bonuses to its hourly workers, citing high inflation, The Charlotte Observer previously reported. Eligible employees also received a quarterly profit-sharing bonus based on their position.

Since 2018, Lowe’s has invested over $2 billion in incremental wages and share-based compensation, Ellison said.

As of Oct. 28, Lowe’s operates 1,969 home improvement and hardware stores in the U.S. and Canada and over 300,000 employees.

Lowe’s has more than 12,000 employees in the Charlotte area, including 7,000 corporate workers, The Charlotte Observer previously reported. The company declined to state how many of its workers are hourly.

This story was originally published November 16, 2022 at 1:18 PM.