Gap Workers Will Soon Make $10 an Hour
Retailer announces two-step wage hike
By Rob Quinn, Newser Staff
Posted Feb 20, 2014 12:31 AM CST
Shoppers walk by the GAP store at a shopping mall in Peabody, Mass.    (AP Photo/Elise Amendola. File)

(Newser) – Gap is staying a step ahead of moves to raise the minimum wage by setting $9 as its minimum wage this summer and raising it to $10 in 2015. The company says the move will affect around 65,000 workers at its stores, which include Old Navy and Banana Republic, NBC reports. President Obama—who wants to bring the minimum wage up from $7.25 to $10.10—applauded the move, which Gap CEO Glenn Murphy described as one that will "directly support our business, and is one that we expect to deliver a return many times over.

The chief of the Retail, Wholesale, and Department Store Union said Gap's move was a step in the right direction, but the biggest problem facing retail workers these days is the struggle to work enough hours to earn a good living. To reduce employee turnover, Gap and other retailers should "give these workers full-time jobs and regular schedules that don’t change week to week," he tells the New York Times. Meanwhile, Walmart—America's biggest employer—denied earlier reports that it was looking at supporting a rise in the federal minimum wage, saying it was "neutral" on the issue and already pays most of its full-time employees more than $10 an hour, Reuters reports.

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Showing 3 of 13 comments
Lou Bernardo
Feb 24, 2014 7:26 AM CST
Considering the huge markup on clothing they have made in slave shops, they can afford to pay more, but of course they'll raise their prices accordingly. Their public relations ploy won't fool many consumers who probably shop at stores that sell the same off-shore merchandise at a lower price.
Jhon_P
Feb 22, 2014 9:19 AM CST
That's filling a gap
BarackMustGo
Feb 22, 2014 7:43 AM CST
Right after there is a 15% across the board price increase, while praying their oh so ingenious (NOT!) plan to attract a bigger share of liberal loser consumers pays off. I hope their calculatingly, unsophisticated, extremely risky move back fires, and they are forced into bankruptcy. Besides, the quality of their clothing is second to........everyone.