It’s no secret that retailers and their employees have a history of rocky relationships in the U.S. A recent New York Times article, titled: “Retail Jobs Don’t Need to Be Bad. Here’s Proof.” argues that retail employment conditions could be significantly improved if American employers followed European retailers’ lead.
For example, the article indicated that while 42% of U.S. retail workers earn a low hourly wage — defined as less than two-thirds of the median wage across the economy — only 23% of workers in Denmark, and 18% in France, earn wages that low.
The RTP team discusses whether Europe’s economic, social and government conditions demonstrate that U.S. retail employees’ lives could be improved, and what steps would need to be taken to move in that direction.
Debbie Hauss, Editor-in-Chief: This is a difficult topic because we have to discuss unions and universal healthcare when comparing wages between the U.S. and other countries. We’ll also get into arguments about welfare, since many minimum wage workers argue they can’t support their families on the wages they make at their hourly jobs. I do think companies should move toward employee-initiated scheduling when possible, which will benefit both the company and the employee. The employee will be happier and the company will get a more motivated worker who will do a better job.
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Adam Blair, Executive Editor: As the New York Times article points out, retail is a major employer in the U.S., accounting for one in every eight private sector jobs. That’s a big chunk of the workforce — too large a group to lack decent starting salaries and basic workplace protections. At a time when proposed changes to the tax laws are slated to give corporations a major economic booster shot, it seems to me that the most patriotic thing a retail company could do is ensure its wage structure shares some of that wealth. The benefits should go beyond simply feeling all warm and fuzzy: if Europe is any indication, retailers taking such actions are likely to get a higher-quality workforce and lower turnover rates — both of which offer tangible bottom-line benefits. If the industry is to pull itself back from the so-called “retail apocalypse,” it’s going to need a trained, motivated, fairly paid workforce to do so.
Glenn Taylor, Senior Editor: U.S. consumers are becoming more aware of the trials of retail workers, especially given the negative publicity about Walmart over the past few decades. Like anything else in retail, the consumer’s opinion of the retailer will affect how they operate, and brands that adapt too late will be punished in the long run. It is pretty striking to see that retail labor turnover in Britain and the Netherlands is half of what it is in the U.S. While wages are a major contributor and other economic factors come into play, it is part of the bigger culture that enables unions to have a larger impact on workers’ salary, benefits and working conditions. I think there would have to be more organizational overhauls in the U.S. for such a change to happen, but retailers could always start small and test changes in certain positions.
Klaudia Tirico, Features Editor: Could retail worker jobs be improved in the U.S.? Absolutely — along with a lot of other jobs in this country. And comparing retail jobs to those in Europe is, as Debbie said, difficult to discuss due to other factors such as universal healthcare and cost of living. I do believe that it is a retail company’s job to ensure its employees are well taken care of, because that good treatment is sure to trickle down. If a worker is happy, gets paid well and enjoys coming into work, that means that person will deliver an exceptional customer experience and even sell more. This is especially important at a time when retailers can use all the physical store foot traffic that they can get.
