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Gap raises wages despite National Retail Federation opposition

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Gap is raising wages after telling its employees around the nation that the company will set $9 as the minimum hourly rate for its United States work force in 2014. In addition, on Feb. 19 according to the Financial Times, Gap told those who work for this corporation's huge string of retail stores that a $10 minimum wage will be put into play in 2015.

A report on Wednesday by The New York Times says this rather surprising move by Gap will mean higher pay "for 65,000 of its 90,000 employees" who work in the US. Those employees have jobs at The Gap as well as at Banana Republic and Old Navy, among other outlets.

Currently, Gap employees are said to be paid as low as $7.25 an hour, which is the current federal minimum wage.

So why the jump in salaries across the board at this point?

Because the United States Congress, urged on by President Obama, is currently in talks about the pros and cons of a bill in play. This bill includes a proposed increase in federal minimum wage to $10.10 an hour by 2016 with many merchants not too pleased about that concept.

In fact, the Financial Times says, "The National Retail Federation, a lobby group that counts Gap among its members, has vehemently opposed an increase in the minimum wage."

Despite that alleged fact, Gap Inc. is in opposition with The National Retail Federal and other retailers while siding with President Obama and promising to do something positive in terms of raising minimum wages for a large percentage of this huge company's hourly paid workers.

The President of the United States said in a statement, "I applaud Gap Inc. for announcing that they intend to raise wages for their employees."



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