Target promised that they would raise their minimum wage to $15 two years ago, and they finally delivered. The move got major praise from labor advocates everywhere and raised the competition for companies within the job force. However, there have been numerous reports by store workers that the wage increase has actually led to less pay. As a result of the higher hourly wage, Target has reportedly decreased employee weekly hours to compensate.
With employee hours being cut by the week, many are noticing smaller paychecks and having a harder time keeping health insurance. CNN Business interviewed 23 current and former Target employees about the effects of the wage change on their lives.
“I got that dollar raise, but I’m getting $200 less in my paycheck,” a current employee said to CNN Business. “I have no idea how I’m going to pay rent or buy food.”
Target is not the only business using this strategy as minimum wages are rising, but hours are falling in the retail business also. Large retail chains like Costco, CVS, and Walmart have hopped on the new wage trends, which could have lasting damage on the retail industry. The poor overall wage growth has a major risk of increasing the 4% unemployment rate.
”It’s one thing to lose some hours here and there, but deliberately taking away hours to spare a few pennies isn’t fair to anyone. You shouldn’t get to be able to mess with my paycheck if you can’t handle raising employee pay,” an anonymous Timber Creek student said. “They made the choice to raise the wages, so trying to be sneaky about skimping us out of money just feels really dishonest.”