Coach owner to raise minimum wage; commits to 100% renewable energy by 2025
Tapestry is the latest retailer to add incentives to attract and retain employees amid the ongoing labor crunch.
The parent company of Coach, Kate Spade and Stuart Weitzman, said that it will raise wages for all its U.S. employees to at least $15 an hour, beginning September 5. In addition, global store employees and managers will receive a one-time appreciation bonus of $500 and $1,000, respectively. Employees who don’t participate in Tapestry’s annual incentive plan and were employed as of Marcy 31, 2021, are eligible to receive the bonus.
Tapestry also made new new environmental, social and governance (ESG) commitments, including tying 10% of global leadership’s annual incentive compensation to equity, inclusion and diversity goals beginning in fiscal 2022. The company will also give all employees one paid volunteer day per year in order to surpass its goal of 100,000 volunteer service hours by 2025.
In addition, Tapestry pledged to buy 100% renewable electricity in its stores, offices and fulfillment centers by 2025.
The wage hike and ESG commitments were revealed in an announcement that included the launch of the Tapestry Foundation, dedicated to advancing access and equity initiatives and to combating climate change. The new initiative will launch with a $25 million initial donation from Tapestry and a $25 million grant from the Coach Foundation.
“At Tapestry, we are committed to leading with purpose to stretch what’s possible both within our organization and the world at large,”said Joanne Crevoiserat, who took the reins as CEO of Tapestry in October 2020. “The initiatives we are announcing today, including the formation of the Tapestry Foundation, the expansion of our Corporate Responsibility goals and our incremental investment in our talent, represent an important step forward on this journey. Further, our resolve to making the world more inclusive, sustainable and safe has never been stronger.”
Retail and restaurant chains across the board, from Under Armour to Chipotle, have all raised their minimum wage in recent months.
[Read More: Most Americans support raising minimum wage — and want companies to take a stand]