Finding a Job

Gap raises minimum wage to $9/hour

Clothing giant Gap stepped into the increasingly heated minimum wage debate by telling staff it would set a $9 minimum hourly rate this year and raise it to $10 next year.

The company said the move would benefit 65,000 of its 90,000 US employees at Gap, Banana Republic, Old Navy and other stores.

The increase comes as Washington is embroiled in a heated debate over a proposal backed by President Obama to increase the federal minimum wage to $10.10 an hour by 2016.

In a letter to the company’s employees, Glenn Murphy, Gap’s chief executive officer, said: “To us, this is not a political issue. Our decision to invest in frontline employees will directly support our business, and is one that we expect to deliver a return many times over.”

 Gap CEO & Chairman Glenn Murphy

In a statement, Obama said: “I applaud Gap for announcing that they intend to raise wages... Right now, there is a bill in front of both the House and the Senate that would boost America’s minimum wage to $10.10 an hour, and lift wages for more than 16 million workers – all without requiring a single dollar in new taxes or spending. It’s time to pass that bill and give America a raise.”

Murphy said the company had invested heavily in technology and needed trained staff to operate those systems. “We have very good people today but to attract and retain the best talent we have to make sure we invest in them,” he told the Times.

The retail giant’s decision follows the publication of a report by the Congressional Budget Office that offered ammunition for both proponents and opponents of a hike in the minimum wage. The CBO report concluded that a rise similar to the one being championed by Obama would lift 900,000 people out of poverty and boost earnings for some 16.5m Americans. At the same time the hike could cost 500,000 jobs.

Gap’s move comes as Walmart denied a report that it, too, was examining a rise in the minimum wage. The company said a Bloomberg report had taken comments out of context. Walmart, other retailers and fast-food firms have faced a wave of protests over low wages in recent years.


See more in the 'Finding a Job' section

Comments


Be the first to add your comments




Comment on this article



Login to submit a comment

 

  Discover Card Miles Application

 

What we offer

GajGal is an expanding community of mothers helping mothers. Our motto “Get a Job | Get a Life” is based on the belief that for mothers wanting to get back into the workforce, finding a job with “the right level” of flexibility, empowers working mothers to live life on their own terms and better control their own destiny.
GajGal aims to address this “new reality” through four core components:

  • 1. Job Search and Matching tools to streamline finding the perfect fit for flexible work arrangements.
  • 2. Access to Benefits that in the traditional work environment have been provided by full time employers. GajGal helps to provide a critical mass of members to ensure access to a range of benefits options that we are continually working to expand and improve on.
  • 3. Working Mother Community to provide access to news, blogs and articles of interest and importance to working mothers and a social networking community that working mothers can interact with and draw on for support.
  • 4. The Entrepreneur Zone is for mothers aiming to start their own business and expand on the concepts of working mothers helping working mothers succeed.

Success stories

GajGal Testimonial

Shayne Duke
“Using your Benefits link made it easy to select from a wide range of health insurance offerings and narrow down the various plans available that best fit my needs. Being able to make a side by side comparison of the details further helped me make an informed decision on a plan with great rates. The application is swift and uncomplicated”

GajGal Testimonial

Amy Rogers
“ WOW this is a fantastic idea aimed at a true need. I have had a hard time preparing to go back to work after staying home with my two kids for the past 4 years. I am so excited to start adding my requirements and get started on the search. The Latest News and Benefits are an excellent idea. I would come here to read this even if I wasn't looking for a job right now”