By Heesun Wee, Editor, CNBC.com
CNBC, Feb 28, 2014
... The wage fight is vocal and contentious as ever. ...
A case for higher pay
Of course not everyone in the food business opposes higher wages. Proponents include executives at Zingerman's, a delicatessen and food business in Ann Arbor, Mich. The original deli opened about 30 years ago and has since expanded to eight related businesses, employing a permanent staff of more than 600 workers.
Zingerman's has driven sales by investing in employees through subsidized health care and above average wages. "We invest heavily in our staff with benefits and training because we can't afford what we do without having people who are full engaged," said Paul Saginaw, co-owner of Zingerman's.
Last week, apparel retailer Gap said it would raise the hourly pay for its U.S. employees to $9 in June 2014, and $10 in June 2015, ultimately to support the bottom line. "Our decision to invest in front-line employees will directly support our business, and is one that we expect to deliver a return many times over," Chief Executive Glenn Murphy said in a letter to company employees.
Saginaw says higher wages attract quality job candidates including Mike Sarowski. He's a former Microsoft employee, who relocated to Michigan in 2009. "It was the middle of the recession, so there weren't a lot of people hiring," said Sarowski, who helps manage food mail orders. An open work culture combined with higher wages prevents high turnover and improves productivity, Saginaw said.
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