Retail giant Target will raise the minimum wage next month for all its employees to $9 per hour.
Target’s announcement signifies the growing competition for lower paid workers, as unemployment has declined to 5.5 percent and consumer confidence has risen. It also comes as labor groups pressure retailers and fast-food restaurants nationwide to boost workers’ pay, calling for a “living wage.”
The retailer’s move follows similar increases made by other large retailers, including Walmart, which said it would raise the minimum hourly wage for its employees to $9. TJX, the owner of T.J. Maxx and Marshalls, announced one week after Walmart said it would raise its workers’ hourly wages that it would match the $9 per hour rate in June.
Among those who pressed Target to boost wages include women’s advocacy group UltraViolet, which ran an online ad campaign targeting devices located near three Target stores, according to Reuters.
“Did you know there’s a Walmart near you that pays higher minimum wage than Target?” banner ads on the website read.
The retailer already pays employees more than the federal minimum wage of $7.25 per hour and aims to offer “competitive wages,” spokeswoman Snyder told CNBC. However, it typically does not announce its wage policies, she added.
Earlier this month, John Mulligan, chief financial officer of Target, told analysts it was “not reasonable” to think in terms of a national minimum rate, Reuters reported. He said a $9 hourly wage in places like New York City or North Dakota would not be appealing to workers.
“Fixating on some single number to us, on an average number is unimportant. It’s about being competitive locally at a store level within a marketplace. That is important, and we’re going to be competitive,” he said, according to Reuters.
Target’s wage hike will affect its 1,800 locations across the country, though it is unclear how many employees’ checks would be affected.
(With reports from CNBC, Reuters and The Wall Street Journal)
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(LA Weekend March 21-24, 2015 Sec. D pg.1)
