Target to raise minimum wage to $10/hr: sources

Apr 18, 2016, 4:53 PM EDT
(Source: Mike Mozart/flickr)
(Source: Mike Mozart/flickr)

Sources said that Target will raise its minimum wage to $10/hr, following Walmart's lead.

Reuters reports:

Discount retailer Target Corp has started raising employee wages to a minimum of $10 an hour, its second hike in a year, pressured by a competitive job market and labor groups calling for higher wages at retail chains, sources said. Target management has informed store managers, who in turn have started informing employees about the wage hike and most employees who earn less than $10 per hour should see their base pay go up in May, two sources with direct knowledge of the situation told Reuters. The $1-per-hour raise marks the second time Target has followed Wal-Mart Stores Inc in raising base wages. It also comes as a union-led push for a $15 minimum wage, the so-called “Fight for Fifteen” movement, is gaining traction in cities across the country and even has become a topic in the U.S. presidential campaign, with Democratic candidate Bernie Sanders calling for a $15 “living wage.” Target's decision reflects growing competition for workers in an increasingly strong labor market. The number of Americans filing for unemployment benefits has fallen to its lowest point in 42-1/2-years, and the jobless rate is only 5.0 percent.

Fortune notes:

In January, Walmart raised its internal lowest starting wage to $10, its second annual increase in a row and part of a $2.7 billion investment to improve customers service and keep the best workers at a time the integration of e-commerce has made in-store work more complex than ever. (For instance, store workers must now also help shoppers navigate apps, self-checkout and be prepared to help stores fill online orders.) Despite the raises at both retailers, the wages remain well below the $15 per hour that union activists and many politicians are pushing for. California lawmakers and union leaders recently reached a tentative deal to raise the state’s minimum wage to $15 over six years, while New York State recently passed increases in wages.