Why Gap Is Raising Its Minimum Wage To $10

[ProSense]

Why Gap Is Raising Its Minimum Wage To $10

By Aviva Shen

Clothing retailer Gap, Inc. announced Wednesday that it will raise its hourly minimum wage to $10, a change that will affect 65,000 U.S. employees. GAP employees who are now earning the minimum wage will make $9.00 in June of 2014 and $10 in June of 2015. GAP, which also owns Banana Republic, Old Navy, Priperlime, Athleta, and Intermix, operates in more than 50 countries and employees 135,000 people around the world.

“To us, this is not a political issue,” GAP Chairman and CEO Glenn Murphy said. “Our decision to invest in frontline employees will directly support our business, and is one that we expect to deliver a return many times over.” In a release, the company argues that increasing the minimum wage will help retain “attract and retain great talent” and improve customers’ experience.

While many retailers claim that they cannot afford to pay the minimum wage without firing employees or raising prices, research shows that companies paying low wages stand to benefit from the huge stimulus a wage hike would bring to poor workers who spend most of their income on basic needs like food and clothing. Even Walmart, one of the most notoriously low-paying companies, announced Wednesday it would consider supporting a minimum wage hike, acknowledging that it would generate extra pocket money for Walmart’s typically low-income customers. Additionally, employees tend to work harder and stay at their company longer after their wages increase.

Chains like Costco, Whole Foods, Boloco, and In-N-Out Burger have all embraced higher wages for these reasons. With Republicans signalling that they will scuttle any attempt to raise the federal minimum wage this year, pressure on the private sector to voluntarily raise wages could be one promising way forward. Also in the absence of Congressional action, cities and states are increasingly embracing higher minimum wages, and President Obama recently announced that federal workers and contractors would get a raise to $10.10 an hour via executive action.

- more -

http://thinkprogress.org/economy/2014/02/19/3306841/gap-raising-minimum-wage-10/

Wal-Mart Considering Support Of Federal Minimum Wage Hike
http://www.democraticunderground.com/10024529539

[riderinthestorm]

1. As a small business owner, I heartily agree. I've always started at $10/hour

I've done this for many years even as my help are all agricultural workers who are used to getting less than minimum wage. It ensures quality employees who stay which my customers LOVE. The horses love the consistency, I don't have to train and re-train staff over and over. My employees work with me, instead of just working for me.

Its key to a healthy business in my experience.

[reformist2]

2. Very smart of them, getting ahead of the curve like that...

That's as far as I'll go, in "praise" of a corporation. This is no different than a politician jumping in front of a parade already in progress.

[Gidney N Cloyd]

4. Probably right. That was the second thing I thought.

The first was... I haven't seen a Gap store in 5 years.

[Cha]

3. K&R Everything is political.. this is a direct IN YOUR FACE..

to the teabagger a$$holes in Congress.

[Agschmid]

5. Kick!