Retailer Target, following Wal-Mart’s lead, announced Wednesday (March 18) it would raise its minimum wage to $9 per hour in April. The federal minimum wage is $7.25 per hour but at least a dozen states have set higher minimum pay rates being ushered in the in the next couple of years.
UltraViolet, a woman’s advocacy group, along with other union interest groups have been pressuring retailers and fast food companies to raise wages and are claiming victory since Wal-Mart Stores, T.JX and now Target Stores that have done just that.
Wal-Mart recently said starting wages would be $9 in April, next year employees after some six months of training will earn at least $10 an hour. This impacts about 500,000 of the retailer’s 1.3 million workers. TJX, parent of T.J. Maxx, will also raise starting wages to $9.
In unrelated news, Target said last week it would lay off about 1,700 workers and close out another 1,400 open positions as part of a $2 billion cost savings plan.