Ikea will raise minimum wage for American workers

Ikea announced Thursday a plan to raise its average minimum wage at U.S. stores to $10.76 an hour.

All 38 American stores won't have the same minimum wage, but will be set according to local costs of living - as low as $8.69 in Pittsburgh, while Woodbridge, VA will move up to $13.22.

From the New York Times:

The store is increasing pay because it is “investing in our co-workers,” Rob Olson, acting president for the United States and CFO, told the New York Times. “We believe they will invest in our customers, and they will invest in Ikea’s stores. We believe that it will be a win-win-win for our co-workers, our customers and our stores.”

Olson says that while the new pay structure will “be a significant investment,” it will not mean higher prices for its products.

The policy change will represent an increase of about 17 percent over the current wage.

(via ThinkProgress)