Target increases its initial pay for some jobs to $ 24 an hour as part of an investment of $ 300 million in its workforce

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Target announced Monday that it is raising its starting salary for workers in some positions to $ 24.

A retailer from Minneapolis said the increase would apply to hourly workers at its discount stores, supply chain facilities and headquarters.

In 2020, the minimum wage is $ 15. This will remain in place, but Target said some workers will qualify for higher starting salaries depending on the nature of their work and competitive wages in the local market.

Target, which employs more than 350,000 people and has more than 1,900 stores in the U.S., said the increase in starting wages is part of its plan to spend an additional $ 300 million on labor. These investments also include expanding access to health services for hourly workers starting in April.

Under the plan, Target’s hourly staff, who work an average of at least 25 hours a week, will be eligible to participate in the company’s medical plan. This is less than the previous requirement of 30 hours per week.

The retailer also reduces the waiting period for hourly team members eligible to participate in the targeted medical plan. Depending on the position held, employees will be able to receive comprehensive medical care for three to nine months in advance. Employees will also gain faster access to 401 (k) plans.

The change comes as more retailers and restaurant chains move to a minimum rate of $ 15 per hour.

In 2018, Amazon raised its initial salary to $ 15, and in 2020 Best Buy – to $ 15. Walmart, the largest retailer in the U.S., said in September that its employees who deal with the front of the store, groceries and consumer goods, will receive at least a dollar per hour increase to $ 12. Wage increases will cover 565,000 Walmart employees.

This Target move comes amid a continuing shortage of retail workers, partly caused by the pandemic as companies around the world struggle to retain and hire more workers.

“Along with the health risks, uncertainties and stresses that come to work during a pandemic, many service workers continue to struggle with chronically unpredictable and volatile work schedules,” said a recent report by Shift Project, a joint venture between Harvard University and the University of California, San Diego. -Francisco.

– Nathaniel Meerson of CNNBusiness contributed to this story

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Target increases its initial pay for some jobs to $ 24 an hour as part of an investment of $ 300 million in its workforce

Source link Target increases its initial pay for some jobs to $ 24 an hour as part of an investment of $ 300 million in its workforce