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Target increases wages of hourly store, DC employees; adds new leave program

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Target Corp. is investing more than $300 million in added wages, a new paid leave program, bonus payouts and associate and community relief fund contributions in response to the COVID-19 pandemic. 

The discounter announced that all full-time and part-time hourly associates working in stores and distribution centers will receive a $2-per-hour wage increase through at least May 2. 

In addition, U.S. team members who are 65 or older, pregnant or who have underlying medical conditions as defined by the CDC now have access to paid leave for up to 30 days if they prefer not to work.

The investments are on top of millions of dollars Target said it will be paying out for the first time to some 20,000 hourly store team leads.

“With each passing day, it’s clearer how indispensable our team is to communities across the country as our guests cope with the coronavirus,” says Brian Cornell, Target’s CEO. “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.”

Target also announced that, in partnership with the Target Foundation, it will donate $10 million to expand relief and assistance to its associates, as well as local, national and global organizations responding to the pandemic. The donation—Target’s largest ever to a single relief effort—will support efforts in four areas:

•    Team members – $1 million will go to the company Target Team Member Giving Fund to assist members who are most impacted. On top of that, Target will match up to an additional $1 million in contributions from fellow team members who wish to assist their colleagues in need. The fund was created in 2018 to help Target associates weather unexpected financial hardships, including life-threatening illnesses, natural disasters and more.

•    Local Communities – $5 million will be committed to state and local community foundations supporting nonprofit organizations addressing the greatest needs in their area, including vulnerable populations such as underrepresented communities.
•    National Organizations – $3 million will support national nonprofits such as Feeding America and others, assisting with response and recovery for affected communities.
•    Global Response – $1 million will support organizations such as Unicef and others, helping provide critical medical equipment and supplies to regions around the world.

Also, members of the retailer’s rewards club, Target Circle, can assist in supporting their local communities and nonprofits, directing Target’s giving to have a positive impact in their specific community.

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