Sonic Automotive Inc., which is quickly increasing its EchoPark model of used-vehicle-only shops in a tightening labor market, will implement a $15 minimal wage for all hourly workers on Sept. 1.
Sonic, a publicly traded dealership group, has 8,500 workers nationwide. It is unclear what number of of them might be affected by the transfer, which was introduced Thursday.
A Sonic spokeswoman didn’t share what number of firm workers are paid by the hour, what job classes include hourly pay or what the retailer’s earlier minimal wage was.
She did notice that the typical enhance in annual pay per affected worker might be $3,250.
The present federal minimal wage is $7.25 per hour, although a little bit greater than half of U.S. states have already got the next minimal wage, in accordance with the Wage and Hour Division of the U.S. Division of Labor.
Whereas minimal hourly wages of at the very least $15 have gotten extra commonplace throughout numerous industries, the Sonic spokeswoman advised Automotive Information in an e mail that the corporate will not be conscious of any opponents with a $15 minimal wage.
Sonic CEO David Smith in a press release positioned the transfer as one thing that may assist the corporate’s hiring and retention efforts and make sure that its workers are paid at above-average ranges for the trade.
“As Sonic and EchoPark attain new heights and obtain record-breaking efficiency ranges, we wish to present our teammates how a lot we worth their contributions,” Smith stated. “Furthermore, this enhance, coupled with the complete spectrum of advantages we offer our associates, furthers our place as an employer of selection that draws and retains the very best expertise.”
Sonic’s worker rely is poised to rise going ahead with its increasing community of EchoPark used-vehicle shops and supply facilities. There are presently 31 EchoPark places, however Sonic is aiming to have 140 places nationwide by 2025. Sonic additionally has 86 new-vehicle dealerships and is trying to purchase extra franchised shops.
Sonic, of Charlotte, N.C., ranked No. 7 on Automotive Information‘ most up-to-date listing of the highest 150 dealership teams primarily based within the U.S., with retail gross sales of 93,281 new automobiles in 2020. It retailed 159,025 used automobiles final yr, making it No. 6 on Automotive Information‘ listing of the highest 100 used-vehicle retailers.