Walgreens Set to Raise Minimum Wage to $15 an Hour

Walgreens Set to Raise Minimum Wage to $15 an Hour

Walgreens Boots Alliance (NASDAQ: WBA) revealed Tuesday plans to raise its employees minimum wage to USD15 per hour by November of 2022. The move follows the continuous shortage of workers within the U.S amid the Covid-19 pandemic. The company’s shares rose 2% following the news.

“Investing in and rewarding our team members is not only the right thing to do, it’s highly important to retaining and attracting a talented workforce, and to continuing to serve our critical role in community health care,” Walgreens CEO Roz Brewer said.

Pay increases will commence in October as the company’s current starting wage is USD10 an hour. However, Walgreens stated that about half of its 190,000 hourly workers already make a minimum of USD15 an hour.

“Total investment to support the starting wage increase is anticipated to be approximately $450 million over the next three years, with one-third of the amount invested in Fiscal Year 2022,” Walgreens said in its announcement. “The company anticipates that it will partially absorb the investment through the normal course of business.”

Rival, CVS Health, raised its minimum wage just last month and no longer has education requirements for its workers. CVS is set to increase its hourly pay to USD15 an hour by July of 2022, to begin this month.

Walgreens shares have risen 25% throughout the year and has a current market cap of USD43 Billion.

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