Target is making the news this week for significantly hiking its minimum wage. This move is good news for 275,000 Target employees that work at Target stores. Target minimum wage is now 15 dollars for an hour. There is a 2 dollars hike in the new minimum wage. Earlier, the minimum wage was 13 dollars an hour. From 5th July, Target’s minimum wage will be 15 dollars per hour permanently and not 13 dollars. This raise in line with a commitment Target made in 2017. In September of 2017, Target said that they aim to make the minimum wage 15 dollars by the end of the year 2020. They have delivered on their promise 6 months in advance.
The Chronology of Target Minimum Wage
About the same time last year in 2019, Target hiked their minimum wages to 13 dollars an hour. In fact, Target was paying 15 dollars per hour in March 2020. However, this hike was temporary keeping in mind the coronavirus pandemic. Now, this increase to 15 dollars an hour minimum wage is permanent. By the ending of July, Target will also pay its hourly employees a 200 dollars bonus. This is a one-time bonus. Target is giving this bonus to appreciate the efforts of their employees during the COVID-19 pandemic. This is good news for 275,000 employees that work at Target distribution centers and stores.
Target is also offering virtual doctor visits to its employees for free. Employees use the CirrusMD app for this and can continue doing so until the end of 2020. Target has invested an additional 1 billion dollars towards wage increases and health benefits this year as compared to 2019. Thus, Target is making huge investments for employee welfare this year. It is heartening that Target is doing this despite the blow to the economy due to the pandemic.
As per government norms, the minimum wage is just 7.25 dollars. Target now offers double this amount per hour. The last hike in federal minimum wages was over 10 years ago in 2009. This is the longest time without any changes to the minimum wages since 1938 when they were established. Congress periodically revises the federal minimum wages but they haven’t done so this time.
People are fighting to get the minimum wages increased. This movement is gathering steam in recent years. In 2012, 200 people working in fast-food joints left their posts demanding a minimum wage of 15 dollars per hour. They also wanted union rights within New York. The movement even has a website called FightFor15.org. This movement is now spread across 6 continents and 300 cities. In July 2019, the house did vote for 15 dollars an hour federal minimum wage. However, this raise gets done by the year 2025. Several companies like Amazon, Starbucks, Walmart, and Kroger pay their employees hourly bonuses due to the COVID-19 pandemic. Now, these temporary raises have come to an end with the country reopening.
This pandemic is a rough time for the entire world. We need to listen to the voices of our workers and pay them well to keep the supply chains running.