Ikea lifts minimum wage, adding pressure to McDonald's, Wal-Mart

|About: McDonald's Corporation (MCD)|By:, SA News Editor

Ikea says it plans to increase the minimum wage for its U.S. retail workers by an average 17% starting next year, a decision that may add to pressure on retailers and fast-food companies that have not raised wages, particularly the largest holdouts, such as McDonald’s (MCD -0.1%) and Wal-Mart (WMT -0.7%).

Business opponents say raising the minimum wage would add as much as hundreds of millions of dollars to costs; Ikea is presenting the move as good for employee well-being, and says it will not raise prices to offset the new costs.

Earlier this year, Gap said it would raise its minimum hourly rate for U.S. employees to $9 in 2014 and $10 in 2015.

ETFs: XLP, XLY, VDC, XRT, VCR, RTH, FXG, RETL, IYK, FXD, FDIS, RHS, PMR, FSTA, RCD, UGE, SZK