By Heesun Wee
CNBC, May 21, 2014
The national debate over whether to raise minimum wages has stirred interest in where American companies stand on the issue. That curiosity perhaps is most intensely targeted at feel-good companies, which pride themselves on progressive practices. Do those companies match their upbeat branding with living wages?
Whether it's because wages underscore values or boost staff retention and productivity, more big companies are dipping into the wage debate. Farmer-friendly Chipotle Mexican Grill says a hike to $10 an hour could be absorbed. Starbucks, committed to greener stores and ethical sourcing of coffee and tea, says it would support efforts to raise wages, but hasn't taken a stance on any specific proposal. And Gap—which has been stressing its corporate citizenship—said it would set $9 as the minimum hourly rate for U.S. workers, and raise the minimum to $10 next year. ...
Particularly for younger consumers, including millennials, purchasing decisions are about more than cheap prices. Shoppers are buying based on a company's values, which can include domestic manufacturing, environmentalism and ethically sourced raw materials, ranging from cocoa to cotton fibers. ...
Most of the 100 employees at apparel and accessories maker Unionwear earn more than $10 an hour. Toss in pension and medical benefits, and "the lowest we pay someone off the street is $14 an hour total," says Mitch Cahn, president of Unionwear, based in Newark, New Jersey.
Cahn has been in business for more than 22 years, with an annual profit margin ranging from 15 percent to 35 percent. Their longevity is more remarkable given they exclusively make "Made in USA" apparel and accessories.
"Manufacturing domestically is about people paying a living wage, and making goods using the same labor and environmental standards that customers benefit from," Cahn said.. ...
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