US retail giant Target has officially raised its minimum wage for all workers to $15 per hour. The company managed to keep its word following its promise back in June to gradually increase the minimum wage of its workers before the end of the year.
Apart from the $2 per hour raise, all of the company's hourly employees will receive a one-time bonus of $200 each. The raise and bonus will apply to Target workers at the company's stores and distribution centers nationwide starting on July 5. The move follows a temporary raise of $2 for essential workers back in March at the height of the coronavirus pandemic in the US.
Target is providing the added bonus as a nod to all part-time and full-time employees that had continued to work throughout the pandemic. According to the company, the bonus will be given out at the end of July. Target currently has around 350,000 employees scattered throughout its more than 1,900 stores across the country. According to the company, more than 275,000 of its employees will be getting the raise, while others such as those in New York are already received wages of at least $15 per hour.
The minimum wage raise is a culmination of years of gradually increasing pay after announced more than three years ago that it would eventually be paying its workers at least $15 per hour. The last time the company raised its minimum wage was in June last year.
Target has been lauded for the way it has treated its employees throughout the worldwide health and economic crisis. The company had provided several programs to workers, including free back up care for its worker's children, frees mental health counseling, and paid leaves for workers that were at high risk of contracting the coronavirus.
The company had announced that it will be added a new benefit to its employees. Starting this week, employees can now avail of free access to a virtual doctor, which can help diagnose illnesses and prescribe medication throughout the rest of the year.
Apart from higher wages, disruption in the company's operations and supply chains has resulted in Target spending more than $1 billion more this year when compared to last year. The majority of its expenses were employee-related and included the purchase of millions of dollars worth of protective apparel and equipment. The company also donated more than $1 million to its Target Team Member Giving Fund, which was established to help workers who were going through unexpected financial hardships.
