For the second time this year, U.S. Bancorp in Minneapolis is boosting its minimum wage.
In response to inflationary and competitive pressures, the parent company of U.S. Bank — which increased its minimum wage from $15 an hour to $18 an hour in June — will lift it even further in early November to $20 an hour for all U.S. and Canadian workers. U.S. Bancorp will also provide a 3% raise to roughly half of its total workforce — about 35,000 hourly and salaried employees, the company announced.
The decision to boost pay comes after talks with employees about how inflation and other market dynamics are affecting them, the company said. In July, the consumer price index, which measures the change in prices over a period of time, rose 8.5% compared with the prior July, after rising 9.1% on a year-over-year basis in June, the highest such increase in four decades.
"We know that the current economic and inflationary environment is presenting challenges for many people, including our employees," Elcio Barcelos, U.S. Bank chief human resources officer, said in an Aug. 24
Given the current dynamics of the labor market, "it's important that we retain and attract talented employees … and these changes will have meaningful impact for thousands of our team members who are vital to our success and our customers' success," Barcelos added.
U.S. Bancorp employees who receive the 3% raise will still be eligible for merit increases in the first quarter of 2023 as part of the annual compensation review process, the company noted. The company did not say how many employees will benefit from the minimum-wage hike.
U.S. Bancorp is the latest in a string of large and regional banks to raise minimum wages in the midst of rising prices and a persistently tight market for financial services workers.
After enabling used-car sales with The Clearing House's RTP rail, the bank has implemented the same technology for real-time funding of vehicle loans.
Bank of America, whose minimum wage has been among the highest in the industry for several years,
New York's JPMorgan Chase, the largest U.S. bank by assets, has been
Synchrony Financial in Stamford, Connecticut, is also
U.S. Bancorp, which is still waiting for regulatory approval to acquire MUFG Union Bank in San Francisco, said that its minimum-wage boost will also apply to the Union Bank employees who are expected to join U.S. Bancorp when the $8 billion cash-and-stock deal closes. U.S. Bancorp said it will retain all Union Bank front-line workers in branches in California, Washington and Oregon.
The timetable for the acquisition, which was originally expected to be finalized during the first half of this year, has since been
