The economy of the United States needs a boost. And is there a better way of fomenting this monetary ferment then by increasing the wage rate? Gap recently increased its hourly wage rate to nine dollars. Next year this will be further extended to $10.
Gap, the owner of Banana Republic and Old Navy, has announced that it will increase its hourly wage rate to $9. And next year this will reach the $10 level. The head of the company explained this move by saying that the employees deserved a raise.
The 65,000 employees it already has among its ranks are quite happy at the decision. Gap along with several other major superstores across the United States have taken this decision after considerable brainstorming.
Gap’s CEO Glenn K. Murphy said in a letter to the company’s employees, “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.”
The Republicans and Democrats are contesting the new government writ according to which the minimum wage will be increased to $10.10 two years from now.
President Obama has especially endorsed the good change. He has spoken in favor of it and wants it to the watchword of the big commercial trade outlets.
President Obama wants to “make a difference nationwide.” In a statement released on Wednesday evening, Obama said, “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.”
But there is one such store that has not paid any heed to the governmental writ. That is Walmart. The execs at the top say that they are already paying decent and handsome wages to their employees. Thus they feel there is no need for an increase in their standard hourly payment to workers.
Meanwhile, the top brass of Gap has expressed its affirmative decision as a means of investing in the talented staff. They want human resources that are loyal due to inner job satisfaction rather than thanks to external prodding.
Gap is based in San Francisco. It is quite a famous brand store that is recognized on a worldwide level. The values of the store workers and administration are very strong. They don’t believe in shoddy work and give their all for the company’s repute and philosophy.