Home Depot (HD) has announced that it is increasing wages for its hourly workers in Canada.
The Atlanta-based home improvement retailer said that every hourly employee will get a raise starting in February, and that, going forward, the starting pay rate will be at least $15 per hour in all Canadian markets.
The pay raises also apply to workers at Home Depot locations in the U.S. The pay increase announcement comes as the company reported fourth-quarter earnings that missed Wall Street forecasts, causing its stock to fall 7% in one trading session.
Home Depot is the latest retailer to raise pay amid a tight labour market. Walmart (WMT) announced in January that it is raising its hourly wage to an average of $17.50 U.S., while Target (TGT) invested $300 million U.S. in hourly wage increases during 2022.
Analysts said that the pay raises could help Home Depot fend off any campaign to try and unionize its store locations in Canada and the U.S.
Workers at a Home Depot store in Philadelphia filed to hold a union election last September, saying that workers have not benefitted from the company’s financial growth.
Home Depot employs a total of 34,000 people across Canada, the majority of whom are hourly workers. The company currently operates 182 stores in Canada.
Home Depot’s stock is down 6% over the past year and trading at $295.50 U.S. per share.
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