By Michael Bodley
The Baltimore Sun, July 5, 2014
Juggling the rising cost of textbooks, tuition, food and rent is a little more manageable now for rising University of Maryland, Baltimore County senior Keyerra Jeter, thanks to a June 1 raise in starting pay to $9 per hour for Gap Inc.'s 65,000 employees. ... Gap Inc. brands — Gap, Old Navy, Banana Republic, Piperlime, Athleta and Intermix — are among a growing group of major U.S. retailers now paying more than the federal minimum wage of $7.25 an hour for entry-level employees. Others include Ben & Jerry's, Costco, Ikea and Whole Foods. Paying workers more reduces turnover and hiring costs, the businesses say, because it makes for happier employees who stay longer and better serve customers.
... Business for a Fair Minimum Wage said benefits of a wage raise can be seen by looking past the increased labor cost to the "long-term savings in the big picture." ...
The network includes major U.S. retailers such as Ben & Jerry's, Costco and Organic Valley, though the majority of members are small businesses. Costco's 10 Maryland locations start employees at $11.50 or $12 per hour — a uniform wage nationwide — according to an email from Pat Callans, Costco senior vice president. ...
It may be harder, but it hasn't been impossible for Amanda Rothschild, managing partner of Charmington's, a cafe in Charles Village. Since the coffeehouse opened in 2010, its employees have earned more than the state minimum, she said. This May, Rothschild increased base pay for her 15 employees to $8.75, plus tips and paid time off based on hours worked. Full-time employees are eligible for health insurance.
She said the measures have led to a turnover rate of 30 percent per year, less than half the 62.6 percent industry average in 2013 found by the U.S. Bureau of Labor Statistics.
"When you have really well-trained individuals working through your company, you have so much less waste. … Your customers are a lot happier," Rothschild said.
For small businesses and large retailers alike, [Alissa Barron-Menza, vice president of Business for a Fair Minimum Wage] said the basic math of higher wages costing more doesn't hold up over time. ...
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