Ikea to raise U. S. minimum wage
Ikea’s U. S division is raising the minimum wage for the second year in a row as the Swedish ready- to- assemble furniture chain looks to improve its relations with workers and reduce worker turnover.
Starting Jan. 1, Ikea’s average minimum hourly wage will rise to $ 11.87, $ 4.62 above the current federal wage and marks a $ 1.11 increase, or 10%, from this year’s average minimum pay.
The increase will affect 32% of Ikea’s 10,500 U. S. store workers and will raise the average hourly wage to $ 15.45. That’s up from the current $ 14.19 per hour. The increase also covers workers in some distribution centers.
Ikea raised the minimum wage in June 2014 by an average of 17%, effective 2015. That marked the biggest increase in 10 years in the U. S. for the retailer. It also pegged the raise to the cost of living in each location, instead of what competitors are offering as most stores do, signaling a new approach to its pay structure.
The pay raise comes as several retailers, including Wal- Mart Stores Inc., have announced wage increases and other incentives to attract workers and to stay competitive in an improving job market. They’ve also faced pressure from laborbacked groups to increase wages.