Ikea is hoping to serve as an inspiration to American retailers who aren’t willing (or able) to raise the minimum wage.
The Swedish furniture giant is going to increase how much its employees are paid in all of its U.S. stores. After basing the wage for each of its stores on the MIT Living Wage Calculator, Ikea will likely boost the average store minimum to $10.76, which is a 17% increase.
This move brings more money to approximately half of the company’s 13,650 employees in the U.S. The wage increase will go into effect on January 1, 2015, according to Chief Financial Officer and Acting President of Ikea U.S., Rob Olson. “It’s all centered around the Ikea vision, which is to create a better everyday life for the many people,” Olson told The Huffington Post. “The many people is, of course, our customers and consumers, but it’s also our co-workers.”
The minimum wage in America has continuously been a central talking point, as it currently stands at $7.25 per hour, and hasn’t been raised since 2009. While the Democrats in Congress want to raise it up to $10.10, Republicans have continued to oppose that plan every step of the way.
You can read the full story about at the Wall Street Journal.