Home Depot announced on Tuesday that it would invest $1 billion in compensation hikes for its hourly workers in the United States and Canada.
According to the home improvement chain with headquarters in Atlanta, every hourly employee will start receiving raises this month. In every market, the starting wage will be at least $15 per hour.
One of many large businesses, like Home Depot, has increased compensation to entice workers in the robust American labor market, where the jobless rate is at its lowest point since 1969.
Target committed $300 million in hourly wage hikes last year, while Walmart stated in January that it would raise its hourly rate to an average of $17.50.
The salary increases may also aid Home Depot in thwarting a nascent effort to unionize its shops, which it opposes.
Employees at a Home Depot in Philadelphia filed paperwork to hold a union election in September, claiming that the company’s strong sales were not benefiting them and that stores were understaffed. In November, retail employees cast ballots rejecting the union.
Home Depot employs four hundred thirty-seven thousand people in the US and 34,000 in Canada.
According to the business, hourly workers make up the great majority. The company has 182 locations in Canada and 2,000 in the United States.
In an email to staff members, Ted Decker, chairman, president, and CEO of Home Depot, stated that “this investment will help us attract and keep the greatest people into our pipeline.” 90% of the chain’s shop executives began as hourly employees, according to Decker.