Site last updated: Saturday, April 20, 2024

Log In

Reset Password
MENU
Butler County's great daily newspaper

TJX to boost wages

Retailer sets low pay at $9/hour

NEW YORK — The owner of T.J. Maxx, Marshalls and HomeGoods stores became the latest retailer to boost pay for its U.S. workers, putting pressure on other chains to do the same.

TJX Cos. said Wednesday that it will increase pay for its U.S. workers to at least $9 an hour starting in June. The announcement came a week after Wal-Mart Stores said it would increase starting wages for its U.S. employees to at least $9 per hour by April and by at least $10 by Feb. 2016. Home furnishings retailer IKEA and Gap clothing chain also have raised pay recently.

John Challenger, CEO of global outplacement firm Challenger, Gray & Christmas, said the moves could create a domino effect in which other companies follow suit to compete for top talent.

“Other retailers may have no other choice but to follow,” he said. “The pool of available labor is starting to shrink and it will take more than a store discount to attract the best of available candidates.”

The moves by the major retailers to raise wages come at a pivotal time when the plight of hourly workers has made national headlines.

Protests by fast food workers asking for higher pay have increased. Labor-backed groups have taken aim at Wal-Mart, the nation’s largest private employer with 1.3 million workers, to start entry wages at $15 per hour.

According to the most recent government data, the average that hourly retail workers in a nonsupervisory role earn is $14.65, but that includes people who work at auto dealers and other outlets that pay more than traditional retailers. The average hourly pay is $9.93 for cashiers and low-level retail sales staff, according to Hay Group’s survey of 140 retailers with annual sales of $500 million.

More in Business

Subscribe to our Daily Newsletter

* indicates required
TODAY'S PHOTOS