By Ian P. Murphy
Retail Dive, May 13, 2015
Controversy over raising the minimum wage has been brewing anew for a couple of years. ... Multiple polls say that 70% to 80% of Americans support an increase to the minimum wage. And three out of five (61%) small-business owners with employees support the proposed Fair Minimum Wage Act, which would raise the national minimum from $7.25 to $10.10 in three phases, says a survey from the American Sustainable Business Council and Business for a Fair Minimum Wage.
The pressure—particularly the “Fight for $15” push for a $15 minimum wage—has led a few large retailers to re-examine payment policies. Gap Inc. was among the first to announce a salary hike last year for associates working for its five brands, upping its minimum wage to $10 starting this year. TJX, the parent of T.J. Maxx, Marshalls and HomeGoods, will raise its base wage to $9.00 per hour beginning in June, promising another $1.00 boost in February 2016. Even longtime holdout Wal-Mart plans to start paying its 1.3 million workers in the United States at least $9.00 in 2015, and $10.00 in 2016. ...
Each of the companies made headlines with their announcements, earning points for attempting to treat low-wage employees a better in the absence of (or perhaps in lieu of) a federally-mandated minimum wage. ...
Other large chains pay employees more and get press only when compared to a lower-paying rival. Costco Wholesale pays employees at least $11.50 per hour, for instance, with its average worker making an estimated $21 an hour without overtime; Zappos pays call-center employees $14.50 an hour.
As a result, many increases looked like weak tea—particularly for Wal-Mart, which had opposed them for so long. ...
In the absence of a complete consensus, the minimum wage will likely continue to be an important factor in building public perceptions for retail brands—for better and worse.
How a company treats its employees is the leading factor behind consumers’ determination whether or not a company is socially responsible, says Nashville-based marketing firm Good.Must.Grow. According to its 2015 Conscious Consumer Spending Index, 64% of survey respondents feel it’s important to buy from socially-responsible companies, up from 62% in 2014. ...
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