“By 2020, we will raise our minimum wages to $15 per hour,” said Target, last year. The company kept its word and raised minimum wages. They have set an example for other companies too.
Other companies also took up the initiative towards offering minimum wages of $15 per hour.
When minimum wages were imposed, workers at Target were very happy over it. But reality set in when their working hours were reduced.
The minimum wages were increased to $15 per hour and Target obliged with the new rule to protect employees by paying them the minimum wages. However, employees complain that their working hours have been reduced and their earnings have also reduced.
“As wages are lower, we are unable to pay for health insurance and other bill payments,” said store workers.
Health insurance to workers is available only if the average working hours are 30 per week. If employees work for less than 30 hours per week, they are not eligible for health insurance.
A Target spokesperson, however, says that both full-time workers and part-time workers are working consistent hours. The percentage of workers eligible to receive health insurance remains steady.
Target has changed its operating procedures to provide better customer service, improve productivity and to meet online orders.
Target leaders reason out saying that stores are working fewer hours as self-checkout has been introduced ad backroom shifts are eliminated.
The company has been performing well. It has shown good sales growth across all its stores. It has plans to increase the number of temporary employees this holiday season by at least 8 percent. This is to improve the performance of the company and to meet peak hour needs, says the company.
Lonnie Golden a professor at Penn State University says that retail stores want more part-time workers who receive minimum wages rather than full-time workers who are eligible for benefits and other perks.