Chobani increases his starting hourly wage to $ 15 an hour.
Starting next year, during the first quarter, approximately 70% of all company employees in hourly positions will be guaranteed a minimum starting wage equal to more than double the federal minimum wage of 7.25. $ per hour. This will also include any new hires at Chobani.
THE TARGET STARTS A MINIMUM WAGE OF $ 15 IN AMERICAN STORES
In its efforts to put people first before profit, the Greek yogurt company is leading the way in corporate responsibility amid a global pandemic.
“When this is all over, companies will be judged on their behavior and how much profit is too much,” Chobani President and CEO Peter McGuinness told FOX Business. “We’re hoping other companies, especially food manufacturers, will look at their starting salaries and raise them, not just because they can, but because they should. And it’s not an expense, it’s an investment that will make businesses stronger. ”
The wage hike will also bring the wages of employees working in the company’s manufacturing plants to $ 19 an hour. And for employees working at the Chobani Café in New York City, the minimum wage will be raised well above the city’s $ 15 minimum wage to $ 18 an hour to meet the high cost of living in the area. .
On average, the hourly rate increase will be around $ 19 an hour.
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According to McGuinness, the decision to double benefits depends on the return on investment, which outweighs the expense. Whether it’s through increased productivity, lower turnover rates in manufacturing plants, or higher profits, the Idaho-based yogurt giant’s take on “doing good” is mutually exclusive with “Solid business”. As a result, no cost will be passed on to consumers, according to the company.
Chobani’s pay hikes also come as the economy struggles to recover from a coronavirus-induced recession and many companies have announced massive layoffs. To date, about 22 million Americans have lost their jobs since the start of the pandemic, and only half of them have been recovered so far.
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And as the number of Americans claiming state unemployment benefits remains at historic highs due to widespread layoffs, Chobani’s mission of defending employees first will be highlighted.
“This moment of uncertainty is a call to come together to strengthen communities and support those who work tirelessly to prepare food on family tables across America,” said Hamdi Ulukaya, Founder and CEO of Chobani in A press release. “Businesses must serve the people and the communities in which they operate. Raising our base starting salary is the right thing to do and we hope other companies, especially food manufacturers, will feel the same as we all are working to rebuild our country. ”
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