TJX Cos., the owner of U.S. clothing and household product stores like T.J. Maxx, Marshalls and Home Goods, says it will boost pay for U.S. workers to at least $9 per hour U.S.
The announcement comes a week after Wal-Mart Stores Inc. said it would increase wages for its U.S. employees — a move the mammoth retailer won’t be extending to Canadian workers.
Low-paying retailers in the United States are having a harder time retaining workers as the job market in the world’s largest economy improves, creating more competition for workers across a variety of sectors, experts say.
In contrast, Canada’s job market has more slack amid weaker economic growth, serving to suppress wage growth. Target Canada’s decision last month to shut its 133 stores means the dismissal of its 17,600 workers by the late spring, a process that will further undermine upward pressure on pay.
MORE: Sorry Walmart Canada workers, no raises for you
A TJX spokeswoman declined to say what workers currently earn. A recent Credit Suisse report estimates TJX’s current hourly pay is about $8.24.
Comment on whether Canadian hires could expect a raise based on Wednesday’s announcement wasn’t immediately available.
In Canada, the minimum wage is $10 or more in provinces across the country. There are currently 38 Marshalls department stores in Canada with TJX opening several new locations in recent years.
Hourly U.S. workers will start to receive the pay increase in June. In 2016, the company plans to pay all associates that have work at its stores for more than six months at least $10 per hour.
TJX, based in Framingham, Massachusetts, operates 3,395 stores and has about 191,000 associates.
— With files from the Associated Press
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