IKEA raises hourly pay for U.S. retail workers - KCTV5

UPDATE

IKEA raises hourly pay for U.S. retail workers

Posted: Updated:
Ikea's U.S. division is raising the minimum wage for thousands of its retail workers, pegging it to the cost of living in each location instead of to local competition. Ikea's U.S. division is raising the minimum wage for thousands of its retail workers, pegging it to the cost of living in each location instead of to local competition.
MERRIAM, KS (KCTV/AP) -

IKEA's U.S. division is raising the minimum wage for thousands of its retail workers, pegging it to the cost of living in each location instead of to local competition.

The raise, announced Thursday, will take effect Jan. 1. It will translate to an average wage of $10.76 an hour, a $1.59 increase from the previous $9.17 and more than $3 higher than the federal minimum wage.

"I know a lot of people that work minimum wage jobs trying to raise families and they can't support their families that way, not when they're making $7, $8 an hour," Melissa Fox said. "They can't pay all their bills. They do struggle to put food on the table."

The 17 percent raise marks the Swedish furniture chain's biggest in 10 years in the U.S.

"I think that's awesome," said Jeff Hayes, who lives across the street from the soon-to-be completed IKEA in Merriam, KS.

While he doesn't like the noise from all the construction, he does love what IKEA is doing for its employees.

"Obviously they want good employees and make sure they can have a living wage to take care of themselves and move onto something maybe more than a minimum wage," Hayes said.

About half of IKEA's 11,000 hourly store workers will get a raise. It will vary in each of the 38 stores based on the cost of living in each IKEA location.

Hayes knows not all companies have that luxury.

"You take a small business and they can't afford to do that," he said.

The move represents a big shift in approach. The company says it is focusing less on what rivals do and more on the needs of its workers.

Copyright 2014 KCTV (Meredith Corp.) All rights reserved. The Associated Press contributed to this report.

Powered by WorldNow
KCTV 5 News

Online Public File:
KCTV  KSMO

Powered by WorldNow CNN
All content © 2014, KCTV; Kansas City, MO. (A Meredith Corporation Station) and WorldNow. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.