Target Slashes Employees’ Hours After Raising Its Minimum Wage to $15 An Hour

Mike Mozart

In 2017, Target announced it would raise its minimum wage to $15 an hour by the end of 2020, drawing praise from labor advocates who have called for other retailers to pay their employees a “living wage.”

But the new wage hike isn’t all it cracked up it be, according to a new report by CNN Business, which found the big-box retailer has been slashing employees’ hours since the announced wage hike:

“CNN Business interviewed 23 current and former Target employees in recent months, including department managers, who say hours have been scaled back even as Target has increased starting wages. Many of these workers say the cuts, which come as Target’s business is in its strongest position in more than a decade, have hurt them financially.”

An employee named Heather told the news outlet that she used to work around 40 hours a week, and since the rate hike was announced her workweek has been cut in half:

“I got that dollar raise but I’m getting $200 less in my paycheck.”

And Heather isn’t alone, all of the employees interviewed by CNN said their hours had been cut almost in half over the past year.

On top of making less in their weekly paycheck, Target employees only qualify for health insurance if they work an average of 30 hours per week. Another employee told CNN her hours were slashed just before she would have been eligible to sign up for healthcare benefits.

When employees asked why their hours were being cut, they were given a variety of answers:

“Target workers who say their hours have dropped have been given a variety of reasons why by their supervisors, including that there were not hours available or that their managers couldn’t fit additional hours in their budgets. Others said they received no explanation for why their hours fell.”

Over the past year, Target has eliminated ‘backroom shifts’ where employees would unload boxes from shipments and keep the store stocked. The company has also employed self-checkout kiosks in many of its stores, limiting the number of employees needed at registers.

In a 2014 interview, the former CEO of Starbucks, Howard Schultz, warned of ‘unintended consequences‘ associated with a $15 minimum wage:

Heidi Shierholz, who was the chief economist at the Labor Department during the Obama Administration, said the wage hike is being counter-attacked by the company slashing employees’ hours, “Most workers aren’t getting any more of what they really need.”

What do you think?

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Otis
Member

Really? Who saw that coming?

Don Snyder
Member

In 2017, Target announced it would raise its minimum wage to $15 an hour by the end of 2020, drawing praise from labor advocates who have called for other retailers to pay their employees a “living wage.”

Wouldn’t it makes sense that if they raise the minimum wage, everything else will go up as well? You raise one thing, everything else goes up. By the way, minimum wage earners, you will STILL be at the bottom of the rung. Stay in school, learn how to do something that gets you a job that makes more than minimum wage.

Phoenix
Member

“This has nothing to do with the consumer/staff level.
The consumer wants the best product at the lowest price.” Captain Snowflake

I disagree. Consumers have different priorities and most people who shop at target are already not consumers where lowest price is a high priority. If it were, they wouldn’t be at Target.

It’s no different than spending a little extra to shop local. My point is, now that the consumer is aware they can make adjustments if it interferes with their priorities when choosing where to shop.

Alma Flowers
Guest
Alma Flowers

They were warned but they listened to the no it all liberals and now look who’s paying for it ,they are !

Heidi
Guest
Heidi

Every change costs someone something, these companies still have shareholders to think of, and with the beyond reasonable health care costs even a 40hr week isn’t enough. While food we purchase at the grocers keeps getting smaller for the same price, housing continues to rise, if not in rent then taxes…where does it all end? In heaven if your lucky.

Lynn
Member

Well DUH!!! This is what anyone with half a brain could have foretold. Sure the company will give you $15/hr. but they’re going to have to make up that difference SOME where!!! Flipping burgers for $15 is absurd. These are NOT skilled workers!! Cashiering is NOT a skilled job. When this all started the Dem. liberals were DEMANDING this pay raise. They DESERVED it, they were ENTITLED to it. The needed it to made a LIVING WAGE. Well, jokes on them, they got their $15 an hour, now there shocked and DUMBFOUNDED when their hours are cut in half? When… Read more »

Victor Deutchman
Member

But they can still pee in any bathroom they want.

ron
Member

it’s not like they didn’t know this was going to happen. they were going to get hours cut or they would let people go. then when throw health care in the mix and having to work 30+ hours they cut everyone’s hours. they are in the business to make money. they know how run a business to make a profit. that is something our government has no idea how to do. make a profit. like balance our budget, the post office, over spend when buying something, and one of my favorites we borrow $$$$$$$$$ to give it away to other… Read more »

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