Target to pay 300 million dollars in bonus and improved employee perks

New York – Target is the latest retailer to say it is handing out raises to employees working to keep shelves stocked amid a surge in demand sparked by the coronavirus pandemic.

“With each passing day, it’s clearer how indispensable our team is to communities across the country as our guests cope with the coronavirus,” said Target CEO Brian Cornell in a statement. “Increasing their compensation for a job incredibly well done and ensuring continued compensation for those who need to care for themselves and their families is a reflection of our company’s values and simply the right thing to do.”

Hourly pay increase for store and distribution centres’ staff

Cornell thus announced that its company, which employs almost 350,000 people, would be increasing wages by 2 dollars an hour for all part-time and full-time employees in stores and distribution centers. The raise will be in effect at least until May, 2. “In recognition of the significant contributions it’s frontline team members are playing during an incredible time of need, Target (NYSE: TGT) today announced it is raising its industry-leading pay by 2 dollars an hour until at least May 2,” the company said.

Additionally, employees who are 65 or older, pregnant or who have underlying medical conditions as defined by the Centers for Disease Control now have access to paid leave for up to 30 days if they would rather stay home. This is in addition to changes it had already made, like agreeing to pay workers who cannot come in because they have contracted coronavirus or been ordered to self-quarantine.

Target also said it will hand out bonuses next month of between 250 dollars and 1,500 dollars to its 20,000 hourly workers who manage individual departments at its stores. These measures are part of 300 million dollars in initiatives the company announced on Friday.

As off today, Target pays its employees a minimum wage of 13 dollars, with plans to increase that to 15 dollars by the end of 2020. The company said that the raise will put a total average of 240 dollars to 480 dollars more in worker’s pockets. Amazon and Walmart also announced similar measures earlier this week.

Target will also donate 10 million dollars to fund various relief efforts

Target will be donating 1 million dollars to the Target Team Member Giving Fund to assist team members who are most impacted by coronavirus. Target will match up to an additional 1 million dollars in contributions from fellow team members who seek to assist their colleagues in need. Target and the Target Foundation have committed another 9 million dollars to expand relief and assistance to organizations helping respond to the coronavirus.

Photo:Target corporate web

 

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