Ikea to raise U. S. min­i­mum wage

Los Angeles Times - - BUSINESS BEAT -

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.

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