Target to bump minimum wage to $11, pledges $15 an hour by end of 2020
CHICAGO — Target Corp. said on Monday it would increase its minimum hourly wage this year by a dollar, to $11. It vowed to raise this by the end of 2020 to $15 an hour — the so-called “living wage” for which labor advocates across the United States are campaigning.
The Minneapolis-based retailer, which plans to start hiking minimum pay across its stores to $11 an hour in October, provided assurances that the move would not hurt its previously announced full-year and quarterly earnings forecasts.
Amid increasing competition for workers in a strengthening labor market, the Fight for Fifteen movement — a union-led push for a $15 minimum wage — has been gaining traction in cities across the country.
Target’s decision comes less than three months after the Minneapolis City Council approved a measure requiring large companies to pay workers least at $15 an hour by 2022, following decisions by other cities to raise the minimum wage.
The retailer, which employs more than more than 323,000 people, said the $11 hourly wage also would apply to the more than 100,000 workers Target is hiring for the holiday season.
CEO Brian Cornell told reporters on a call that Monday’s decision would leave Target better prepared for the upcoming holidays, helping the retailer to attract new employees and retain existing workers in an increasingly complex retail environment.
Wal-Mart, the largest retailer and private sector employer in the United States, last raised its minimum wage for store workers in 2016 to $10 per hour.