With pressure mounting from labor groups and exacerbated by a highly competitive labor market, Target has recently raised minimum wages for its workers to $10 an hour from the previous $9, says a reputable source.
This is the second time that the giant retailer has hiked its workers' salary. The company has informed its management staff about the wage hike who in turn informed their respective workers.
Those whose base pay is less than $10 per hour should see their salaries raised by May, said two knowledgeable sources to Reuters.
This wage hike is the second time that Target has followed the example set by Walmart which comes amidst a time when pressure is mounting from its workers' union calling for a $15 minimum wage.
Walmart increased its minimum wage to at least $10 per hour from the previous $9 for workers hired before January 1. This large retail store chain now provides $13.38 per hour for full-time associates and $10.58 for part-time workers.
The "Fight for Fifteen" movement is increasing its membership across the nation and has now become a debate topic in the current U.S. presidential campaign. Bernie Sanders, in particular, is vociferous in supporting a $15 "living wage."
A spokesperson of the retailer refused to comment on the Reuters report.
"We pay market competitive rates and regularly benchmark the marketplace to ensure that our compensation and benefits packages will help us to both recruit and retain great talent," said the spokesperson in an email. "However, we typically don't disclose the details of our compensation programs," he added.
This move of Target reflects the increasing competition for workers as the labor market is growing in strength. Currently, the number of workers who are filing for unemployment benefits has dropped to its lowest point in 42 and one half years. The jobless rate is just 5.0 percent.
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