|Ikea plans to adopt a wage structure that it says will raise the average hourly minimum wage at its 38 stores in the United States to $10.76 an hour — a 17 percent increase.|
Ikea, which will be announcing its new wage policy on Thursday, said it would not impose an across-the-board minimum wage for its stores, but would instead set a minimum for each store based on the cost of living in that particular area.
For example, the minimum wage will run from a low of $8.69 an hour at its stores in Pittsburgh and West Chester, Ohio, to $13.22 an hour at its store in Woodbridge, Va.
Ikea said that its new average minimum wage, $10.76 an hour, was $3.51 above the current federal minimum wage of $7.25 an hour.
The retailer’s decision was made as many low-wage workers and labor unions are pushing for an increase in the federal minimum wage and after Gap Inc. informed its employees in February that it would set $9 as the minimum hourly rate for its United States work force this year and then establish a minimum of $10 next year.
Gap said its new policy would raise pay for more than two-thirds of its 90,000 American employees, including those at Banana Republic and Old Navy, while Ikea said its new policy would raise the pay of about half of its 13,120 United States employees.
“This stems back to Ikea’s decision to create a better everyday life for our people,” said Rob Olson, Ikea’s acting president for the United States and its chief financial officer.