• Trendy Target Ignores a Warning — and Its Employees Pay the Price

    Surge Summary: Lots of experts have warned about the negative consequences of a required $15/hour minimum wage for all businesses. Target stores disregarded those warnings — and are proving the naysayers correct.

    How gratifying is it when someone pays heed to a warning and, as a result, is spared loss or heartache? Why does it seem that situation is so rare?

    OneNewsNow’s Michael F. Haverluck writes about a timely case in point,

    After jumping on board with the progressive push across America to raise the minimum wage to $15 per hour, a major retailer is now facing the very issues about which critics warned.

    “Target announced two years ago that it would raise the companywide minimum wage to $15 per hour by the end of 2020, winning plaudits from progressives and advocates for an increased minimum wage,” TheBlaze notes.

    “Now, with just one year before Target is scheduled to hit the magic $15 mark ($13 is the current minimum wage), it turns out that raising the minimum wage has impacted many Target employees in the exact way that opponents of mandatory minimum wage increases predict.”

    Once more, warnings were extended by lots of folks who understand how economics work and/or who know a little bit about economic history. And, once more, warnings were clearly ignored. Thus …

    A CNN Business report informs: the impacts of this planned wage hike include harms to employees — reduction in hours and removal of benefits.

    While a $15/hour minimum wage may sound good and look good on paper – at least to Democrats and other progressives – its negative effect on businesses and employees alike is often omitted from the debate. But CNN says layoffs are piling up for retailers as they maneuver to implement the problematic wage hike.

    Even though Target claims its $13-and-climbing minimum wage is “building a stronger business,” current and former employees with reduced hours and decreased benefits don’t feel stronger or better off – but rather weaker and financially worse off. Workers with the retailer – on condition of anonymity – shared with CNN Business their predicament because of the $15 minimum wage hike.

    “We’re begging for hours,” Desire, who works at a Target in Virginia, told CNN Business.

    Heather, who began working for Target last November with 40 hours a week, now receives less than 20 some weeks. “I got that dollar raise, but I’m getting $200 less in my paycheck,” she shared with CNN. “I have no idea how I’m going to pay rent or buy food.”

    Sadly, the real-life blowback doesn’t stop there. Paycheck cuts caused by minimum wage increases aren’t the only problem. Nowadays, you just know health care had to end up being involved, didn’t you …?

    “Beyond just a drop in earnings that Target workers who spoke with CNN Business have experienced, employees who average fewer than 30 hours of work a week during the year aren’t eligible to qualify for health insurance benefits through the company during annual enrollment season in the spring,” CNN’s Nathaniel Meyersohn explained. “Target offers health insurance benefits to eligible employees who average more than 30 hours a week, according to the company.”

    After averaging between 35 and 40 hours a week for about seven months, Caren Morales, who used to work at a Target in Diamond Bar, California, received a letter from the company in February about how to sign up to get health insurance benefits.

    “Target worked me hard from mid-July of 2018 to February 2019 – right before my medical coverage was about to kick in,” Morales told CNN Business. “They cut my hours right then, and so I begged for hours and always went above and beyond.”

    That doesn’t sound very compassionately Lefty of them, does it?

    When Target slashed her hours to as little as 15 per week, she quit. “I called in on May 1 and said, ‘I can’t come in today or ever again because I can’t afford my daughter’s daycare,” Morales recalled. “You guys cut me really bad

    The CNN Business report mentions, although a Target spokesperson would not discuss details about Morales’ employment he did confirm her store “slightly” decreased its payroll and employee hours for the 2018 through 2019 period.

    How about “Michael”? He’s worked at a Texas Target for years and was clocking up to 40 hours weekly. His hours have now plunged to below 30/week and so he’s had to find a second job.

    “I’m hoping going to Christmas will keep me at the average needed [for health insurance], but at this rate who knows?” he admitted to CNN Business.

    The experiences of Caren Morales and Michael are putting on painful display a lack of income and lack of security, courtesy of one of Progressivism’s centerpiece causes. Idea’s like a required $15/hr. minimum wage might glow in editorials and during Leftist demonstrations in front of corporate headquarters; but they create chaos when imposed on actual life.

    One former department leader in a Colorado store said hours have dropped to lower than he’s ever seen. “Some workers who had open availability were only getting four or six hours,” Jack shared.

    Salt to the wound, while slashing current workers’ hours, the retail giant keeps adding employees. One Washington state Target department leader, “Chelsea”, said her store has been hiring additional employees but also cutting into the hours of existing workers. “Hours have been cut because I have to add more people,” she explained.

    You see? More workers, dividing up available hours into smaller allotments per employee, saves money for Target (health care cuts are reduced because fewer staff are clocking in the requisite thirty or more hours per week.)

    Articulating kitchen table economics, and basic mathematics,

    Heidi Shierholz, a chief economist for the Labor Department under the Obama administration, indicated to CNN Business that the wage hikes are problematic. “[If Target cuts back hours for some workers as it raises wages,] most workers aren’t getting any more of what they really need,” Shierholz said.

    Tony, who works at a Target in Pennsylvania, said a higher hourly wage “really doesn’t help much when [I’m] only doing 20 to 30 hours a week,” adding that he now has to buy his food at a local dollar store and ask his mom to help pay his bills.

    Comments from other Target employees interviewed by CNN Business suggest the move to cut hours has been detrimental to morale. One employee quit his job in Bloomington, Minnesota, after “out of nowhere” his hours were cut from 38 to 22 per week; another in Michigan – whose hours dropped to 30 per week to 19 in June – said many in his department left due to hours being cut “drastically”; and one in Maryland posed the question: “How are we supposed to be enthusiastic and happy if we’re only working 19 hours a week?”

    So, Target yields to trendy, progressive, “anything-less-than-$15/hour-is-barbaric” propaganda. The result? Widespread financial crisis, loss of health care benefits and emotional and psychological turmoil for those who keep the retail chain operating.

    The fruits of Leftism for all to see. Yet another warning for the rest of us.

    H/T: OneNewsNow’s Michael F. Haverluck

    Image: by Mike Kalasnik from Fort Mill, USA – Target Albemarle Rd Charlotte, NCUploaded by AlbertHerring, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=29524205

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