Ikea became the 7th company to announce an increase in their starting wage; according to a June 26 article in Huffington Post. Ikea joined Costco, Ben and Jerry’s, the Gap, Whole Foods, In-N- Out Burger and Shake Shack; as companies formally announcing the increase. Ikea’s increase will take effect at the start of 2015.
Seattle made a huge splash this year when it announced that the minimum wage for workers would go to $15 per hour; starting in 2015. According to King 5 News; the issue is now in the hands of the Washington State Supreme Court. The Court is being asked to determine which workers are eligible for the increase, and those that are not.
A number of business analysts and owners see the public and private sector salary increases as the first of many dominos that will eventually impact all businesses.
One business professional supported the announcements made by Ikea and others; but was concerned that a “bidding war” for top talent could be in our future. “Money in the hands of the consumer is never a bad thing. Ikea or Costco could even couple the pay increases with discounted merchandise for employees; assuming that they haven’t done so already. That may work for larger companies; but the smaller ones may not be able to keep up, and their top talent could be poached. That reality would be bad for us all.”
Increases to starting wages continue to be a polarizing issue. Supporters of the increases believe that it will decrease the need for food stamps, and get millions of families above the poverty level. Critics of the increase say that it is an artificial stimulant to the economy, and will have a negative impact on the economy in the long run. What do you think?
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Source: Huffington Post