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Published: Wed, July 13, 2016
Economy | By Melissa Porter

JPMorgan to raise minimum wage for 18000 US workers

JPMorgan to raise minimum wage for 18000 US workers

The federal minimum wage has been $7.25 an hour since 2009, but since early previous year a handful of major American corporations including Walmart (WMT), Starbucks (SBUX), Target (TGT) McDonald's (MCD) and Costco Wholesale (COST) have announced pay hikes for at least some of their workers.

A day after Starbucks announced pay raises for employees, JPMorgan Chase followed suit by pledging to raise its baseline minimum pay by $6.35 an hour over the next three years to $16.50.

Against that political backdrop, and given signs of tightness in the labor market, wages are slowly starting to move.

Dimon's pay package was $27 million for 2015, a 35 percent rise from 2014.His column draws attention to the lower-paid Americans who work in the financial sector. This includes the preparation of derivative works of, or the incorporation of such content into other works. The increases will be phased in over three years in more than 75 cities. The wages were growing at more than six percent in 2007, fell sharply in the recession, jumped to a five percent increase in 2012 but have been trending at 2 to 3 percent since 2013, she said.

The move follows USA salary increases announced over the past year and a half by several large companies, including Wal-Mart Stores, McDonald's and, just Monday, Starbucks. JPMorgan Chase & Co. makes up approx 1.25% of Boltwood Capital Management's portfolio.Indiana Trust Investment Management Co reduced its stake in JPM by selling 1,169 shares or 2.64% in the most recent quarter. The JPMorgan Chase Institute issued a new report that reveals consumers' financial response to a year of lower gas prices.

And it is a tricky issue for Wall Street. The national median salary for tellers is $12.70 per hour. Some of those raises might have happened anyway: The top rates are for those in high-cost cities including NY and San Francisco, where politicians have approved a $15 minimum wage by 2018.

The move thrusts JPMorgan into a debate about what qualifies as a fair wage.

The gap between the highest earners and lowest earners has also been a central theme in the U.S. election.

"It enables more people to begin to share in the rewards of economic growth", Dimon wrote in the article, noting that many of those who would benefit from the wage increase were bank tellers and customer-service representatives.

In addition to these wage hikes, the company will invest over $200 million this year on training for entry-level employees and $325 million towards "career-oriented education".

At JPMorgan, the employees getting raises represent a fraction of the bank's total workforce. There's a lot of movement where bank branches are being closed and replaced by online banking, and in other places they're being enhanced.

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