As Ikea raises minimum wage, pressure mounts for others
As home retailer Ikea announced plans to raise the average, hourly minimum wage at its U.S. stores to $10.76, the pressure is mounting for other big brand businesses to lift pay for their workers.
Large companies, from retail to food—as well as many states—have hiked their hourly rate, or are considering such a move.
Gap in February said it would set $9 as the minimum hourly rate for U.S. workers, and raise the minimum to $10 next year. Chipotle Mexican Grillhas said an increase to $10 an hour could be absorbed. Starbucks says it would support efforts to lift wages, but hasn’t taken a stance on any specific proposal.
Ikea’s announcement is “a significant step nationally in moving the wage from where it is now,” said Greta Bergstrom of TakeAction Minnesota, which has lobbied to raise wages in the state. Minnesota lawmakers in April approved lifting the state minimum wage to $9.50 an hour over three years.
Ikea’s decision “will put pressure on other big box retailers to raise their wages,” Bergstrom said.
