NEW YORK, July 13 (UPI) — JP Morgan Chase & Co.’s 18,000 lower-tier employees will receive a raise, CEO Jamie Dimon announced.
Writing Tuesday in The New York Times, Dimon called the plan “the right thing to do” to retain employees in a competitive industry while the U.S. economy nears full employment. The plan would raise salaries from the minimum wage up to $16.50 per hour depending on the job and location.
The bank is the United States’ largest, measured in assets.
The plan, to be phased in over three years, is similar to pay increases announced by Walmart Inc., Target Corp. and Starbucks Corp. Dimon also said lower-compensated employees will receive added health and education benefits.
The announcement comes as banks are shedding employees, because of lower profits provoked by low interest rates and underperforming growth.
His comments in the newspaper editorial encouraged other companies to invest more in their employees, noting that his company’s upper management includes people who began their careers as bank tellers, a job category quickly disappearing.
“It is true that some businesses cannot afford to raise wages right now. But every business can do its part through whatever ways work best for it and its community. It can identify local partners to address economic inequality. It can encourage and provide continuous training, teach leadership capabilities and identify mentors to help sharpen employee skills.”
While the unemployment rate has declined, wage growth in the United States has stagnated, and Dimon’s comments indicate employers are noticing the labor pool is shrinking and wages must increase, CNBC noted Wednesday.
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