Ikea workers at about half the outlets in the U.S. are getting a pay bump as the Swedish furniture giant implements a new wage structure tied to the cost of living.
But Canadian workers, including the unionized employees on strike at the Richmond outlet since May 2013, won’t be seeing a similar pay adjustment.
Ikea U.S. announced June 26 it was adopting the new wage structure, which would boost the average minimum wage to US$10.76. The previous minimum wage was US$9.17.
The policy goes into effect in January 2015 and the company said it would not affect prices at its stores.
The new U.S. pay structure is based on the Massachusetts Institute of Technology (MIT) living wage calculator, which gauges annual taxes, housing, food, medical and transportation costs in a given city. Ikea minimum wages would vary depending on the location an employee works.
When asked if Ikea Canada planned to introduce a similar wage structure, a spokeswoman provided Business In Vancouver with a prepared statement applauding efforts made in the U.S. to increase its minimum wage at outlets in that country.
The company noted 97% of its employees earn more than C$11 an hour — 32% of whom make more than C$17 an hour.
Based on currency exchange rates on June 26, Ikea Canada would have to pay its workers a minimum wage of C$11.50 to match Ikea’s new U.S. minimum wage of US$10.76.
Vancouver has the highest cost of living among cities in North America, ranking one place above New York City’s borough of Manhattan, according to business consulting firm ECA International.
MIT’s calculator did not have results for Vancouver but it pegged the minimum living wage of a single adult Manhattan resident at US$12.75, or C$13.63.
