May 19, 2020
Target, the eighth-largest U.S. retailer, has announced plans to extend its temporary $2-an-hour pay hike for frontline workers through July 4 as the company continues to deal with higher demand amid the COVID-19 pandemic, Bloomberg reports.
The company also is extending policies that give employees who are 65 or older, pregnant. or with medical conditions paid leave for up to 30 days. In addition, workers will get access to backup care for children or family members.
Bloomberg notes that the way in which the store is stepping up for its employees “contrasts with recent moves by retailers such as Amazon and Kroger, which are winding down higher hourly pay initiatives as the coronavirus lockdown persists.”
This will be the second extension of higher pay for Target, which initially announced wage increases in March. The Minneapolis-based retailer has seen a big boost from selling essential goods during the coronavirus pandemic, but investors are bracing for lower margins due to the higher costs and the possibility it will write off slow-selling merchandise like clothing, according to the business news outlet.
Companies allowed to operate through the pandemic, such as supermarkets, warehouses, and transportation firms, have benefited from a boost in demand and a labor market swollen with newly unemployed workers. However, their treatment of workers has drawn regulatory scrutiny; as well as protests from employees worried about catching COVID-19 at work and bringing it home to their families.
Research contact: @business