IKEA US Raises Minimum Wage to $10.76 an Hour

Posted by Bill Esler | Posted: 06/26/2014 2:07PM

 

CONSHOHOCKEN, PA -  IKEA US announce it will raise its minimum hourly wage to $10.76, a $1.50 or 17% increase beginning January 1, 2015. The raise applies to about half its hourly workers.

IKEA store The new minimum will be $3.51 above the current federal minimum wage, and will vary based on the cost of living in each IKEA US location. IKEA will use MIT's Living Wage Calculator rather than determining wages based on the local competitive labor market. IKEA says wages thus become centered on the needs of the co-worker.

“The transition to the new minimum hourly wage structure is not only the right thing to do, it makes good business sense," said Rob Olson, IKEA US Acting President and CFO.  "We are basing our wages on our co-workers and their needs, rather than what the local employment market dictates."

Using the MIT Living Wage Calculator, which takes into consideration housing, food, medical and transportation and taxes, means the hourly wage will vary based on the cost of living in eachof IKEA US's 38 locations. It won't affect woodworkers: all five distribution centers, two service centers and a manufacturing facility already have hourly wage jobs that are paying minimum wages above the local living wage.

 

About the Author

Bill Esler, Woodworking Network, WMS

Bill Esler

Bill Esler, Editorial Director, Woodworking Network Bill is responsible for overall content at WoodworkingNetwork.com Woodworking Network magazine, and related newsletters. Bill also manages event programs for Woodworking Network Live conferences at the Woodworking Machinery & Supplies Expo in Toronto and Cabinets & Closets Expo. He developing audience engagement programs using custom digital printing, live lead-generating events, custom websites, and custom digital and print content. Read Bill Esler's woodworking blogs. He can be reached at besler@woodworkingnetwork.com or follow him on Google+.

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