The wage hike issue that caught everyone’s attention a few days ago when online retailers announced that they would revise their wage structure has finally hit the fast food industry as well. Domino’s Pizza, Inc. (NYSE:DPZ) announced last week that it was planning to raise the minimum wages for its workers in United States. As per the reports, CEO of Domino’s thinks that it’s the call of the moment to hike the minimum wages. It’s the only way to survive in today’s competitive world.
Road So Far:
While talking to reporters on Monday, he said that minimum wage hike was essential to keep the skilled manpower, or else others would hire them. Domino’s Pizza, Inc. (NYSE:DPZ) doesn’t want to be left behind in this fast-paced world; hence, the company has decided to enhance the minimum wages of its workers in United States to $10 per hour. The company employs close to 90,000 workers in United States; therefore, all of them will get benefitted from this wage hike directly. Reports claim that the hiked wages will be applicable from July 1, 2015.
Patrick Doyle, Chief Executive Officer, Domino’s was talking to CNBC on Monday. He said that others had increased the minimum wages, and if Domino’s doesn’t do it, then it would become very difficult for the company to retain the talent. The unemployment rate in United States has come to the lowest level in the last six years, which has enhanced the competition in the market.
Labor groups and various allies have asked the retailers and fast-food companies in United States to enhance the minimum wages to a level where they could be enough for workers to have a decent lifestyle. The announcement made by the fast food giant has come at a time when other companies in the same industry have not announced any such plan.