Target Corp. said it will extend its temporary $2-an-hour pay increase for workers through July 4 as the company continues to deal with higher demand amid the covid-19 pandemic.
The company is also extending policies that give employees who are 65 or older, pregnant or with medical conditions paid leave for up to 30 days. Workers will also get access to backup care for children or family members.
The move contrasts with recent moves by retailers such as Amazon.com Inc. and Kroger Inc., which are winding down higher hourly pay initiatives as the coronavirus lockdown persists across much of the U.S.
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 because of the higher costs and the possibility it will write off slow-selling merchandise like clothing.
Companies allowed to operate through the pandemic, such as supermarkets, warehouses and transportation firms, have benefited from an increase in demand and a labor market swollen with newly unemployed workers. But 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.
Business on 05/19/2020
Print Headline: Target to extend pay raise until July 4 amid pandemic