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Target follows rival Walmart in wage increase | Target follows rival Walmart in wage increase |
(25 days later) | |
US retail giant Target will raise the minimum wage it pays its employees to $9 (£6) an hour after rivals announced similar moves, according to reports. | US retail giant Target will raise the minimum wage it pays its employees to $9 (£6) an hour after rivals announced similar moves, according to reports. |
The wage rise would begin at all of its 1,800 US stores in April. | The wage rise would begin at all of its 1,800 US stores in April. |
The move follows announcements of wage increases by the world's biggest retailer Walmart and TJ Maxx owner TJX last month. | The move follows announcements of wage increases by the world's biggest retailer Walmart and TJ Maxx owner TJX last month. |
US labour groups have been petitioning for a "living wage" at retailers and fast food restaurants. | US labour groups have been petitioning for a "living wage" at retailers and fast food restaurants. |
The US federal minimum wage of $7.25 an hour has not increased since 2009 despite efforts by US President Barack Obama to boost workers' earnings. | The US federal minimum wage of $7.25 an hour has not increased since 2009 despite efforts by US President Barack Obama to boost workers' earnings. |
Target has said that it pays higher than the federal minimum wage in all its stores. | Target has said that it pays higher than the federal minimum wage in all its stores. |
The company did not respond to BBC requests for comment. | The company did not respond to BBC requests for comment. |
Walmart led the charge when it said that it would pay its employees the $9 minimum starting in April and workers with about six months training would receive a minimum of $10 an hour in 2016. | Walmart led the charge when it said that it would pay its employees the $9 minimum starting in April and workers with about six months training would receive a minimum of $10 an hour in 2016. |
TJX soon followed after, announcing it would match the $9 amount in June at its TJ Maxx and Marshalls stores. | TJX soon followed after, announcing it would match the $9 amount in June at its TJ Maxx and Marshalls stores. |
Target, meanwhile, has been facing pressure to raise wages after women's advocacy group Ultraviolet ran an online petition against the retailer that garnered thousands of signatures. | Target, meanwhile, has been facing pressure to raise wages after women's advocacy group Ultraviolet ran an online petition against the retailer that garnered thousands of signatures. |
The moves come at a time when the US economy is growing, with the unemployment rate at 5.5%, the lowest level in six years. | The moves come at a time when the US economy is growing, with the unemployment rate at 5.5%, the lowest level in six years. |
However, wage increases have not come to many workers, despite encouraging signs of growth in the world's largest economy. | However, wage increases have not come to many workers, despite encouraging signs of growth in the world's largest economy. |
In 2015, the minimum wage in 23 US states and Washington, DC is set to rise to varying degrees, as a result of voter action in the 2014 midterm elections. | In 2015, the minimum wage in 23 US states and Washington, DC is set to rise to varying degrees, as a result of voter action in the 2014 midterm elections. |