Ikea wants to adopt a new wage structure with the main point of interest being the increase in the minimum hourly wage to $10.76 per hour (average) in all 38 US stores. This marks an increase of 17%.
The minimum hourly rage will be based on state. In Pittsburgh the wage would be $8.69 per hour while in Woodbridge it would be $13.22 per hour.
Ikea’s decision comes as many labor unions try to push an increase in federal minimum ages. Gap Inc. already increased the hourly rate to $9 as minimum and an increase would be done in 2015, making the minimum remain at $10.
Rob Olson, Ikea US President and CFO declared:
“This stems back to Ikea’s decision to create a better everyday life for our people. We are of course investing in our co-workers. We believe they will invest in our customers, and they will invest in Ikea’s stores.
We believe that it will be a win-win-win for our co-workers, our customers and our stores. “
The minimum hourly wages are to be calculated with the Living Wage Calculator by Massachusetts Institute of Technology. Ikea prices will not be increased.
Ikea has many really good benefits that are offered for employees, many of them being above what the competition offers, including 100% matches for 4% of the pay contributed towards 401k plans and 50% matches for the following 2%.