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Lowe’s Adds Another $100 Million to COVID-19 Worker Bonuses

By Rich Duprey – Jun 29, 2020 at 12:46PM

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It's the third time since the COVID-19 pandemic began the DIY warehouse has paid out bonuses to employees.

Lowe's (LOW 0.01%) is boosting the amount of money it is paying out to its employees during the coronavirus pandemic, announcing it will pay them another $100 million in bonuses.

The home improvement warehouse said it wanted to "recognize and reward front-line associates" for their work through the crisis, so it was giving each full-time employee a $300 bonus while part-timers would get $150. The bonuses, which will be paid in mid-July, are similar to the payments made to workers in March and May.

Lowe's plumbing department employee

Image source: Lowe's.

Support through times of turmoil

The new incentive brings to $450 million the amount Lowe's has set aside for employees and communities during the crisis.

Most of the money has gone to its workers, though. In addition to the three rounds of bonuses, Lowe's also raised employee pay by $2 an hour for the month of April and gave them $87 million in profit-sharing bonuses in June. The DIY giant also let all employees use its telemedicine service, even if they weren't enrolled in any of Lowe's medical plans.

The retailer also donated $70 million in grants and personal protective equipment. (AMZN -3.01%) just announced that it was also giving its employees an extra bonus. The retailer said full-time workers at Amazon, Whole Foods Market, and even drivers for its delivery service partners will receive a $500 bonus while part-time employees will get $250, for a total of $500 million.

Many consumers are hoping a second stimulus check from the federal government will also materialize, as people are still coping with many businesses having been shut down for over 100 days. In addition to the first $1,200 stimulus checks received, unemployed workers received $600 per week in benefits. 

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends Lowe's and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

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