Minimum to Maximum
Who needs an unpaid internship when you can be living in California making over $10 dollars an hour to fold hoodies and capris? The popular retail store Gap, has made the decision to raise their minimum wage above and beyond employee expectations. Based out of California, Gap workers in San Francisco are now making around $10.74 an hour, the company hopes to help raise the pay in all Gap locations nation-wide. Gap Inc. has pledged to raise their minimum pay to $9 this year and hopefully to $10 by 2015.
A Presidential Pat on the Back
Being a chain-clothing store this is a daring new move for the company to be making. The decision to raise Gap’s minimum wage has caught the attention of President Obama. He commended the company’s initiative in being proactive with their employees needs. Currently there is a bill being debated over by the House and the Senate regarding an increase in minimum wage to $10.10 an hour by the year 2016 (which we all know will probably never happen).
A Future to Follow
Gap’s chief executive Glenn K. Murphy was quoted saying, “To us, this is not a political issue. Our decision to invest in front-line employees will directly support our business, and is one that we expect to deliver a return many times over.” Raising wage pay is a great way to boost company moral and if Gap is able to successfully carry out this plan it is imagined that many other companies will have no choice but to follow.
The Gap has taken a bold step forward in retailing economics. It may be one of the first retailers to break the mold of paying minimum wage to selling associates (front line employees) by raising that to $10 an hour. Even though Gap’s front line employees fold hoodies and capris, they are asked to work long hours and odd shifts every day of the week, nights and holidays, standing on their feet on concrete floors with only short breaks for rest periods. A new wage is much deserved.
I began to think about this situation of creating good will and moral boosts for Gap’s sales staff. What happens when a newly hired sales associate begins working at the new wage of $10 per hour and the seasoned associate who has worked for several years at $7.25 per hour learns that he or she won’t be earning the same as the new associate. Will this not cause ill-will and dissension and cause loyal associates to seek other employment? Won’t all employees have to be paid the new $10 per hour wage increase?