Most of the retail stores in the world, including Target Corporation (NYSE:TGT) hiked the minimum wages to $9 per hour recently. After this incident, many other companies in the same field also announced hikes in their wage system. As per the reports, the move has motivated all the labor groups as they have now turned towards drugstore chains in the hope of minimum wage increment.
Insights On The Matter:
Reports of a few labor groups preparing to take on drugstore chains have hit the market. Target Corporation (NYSE:TGT) and other major retail players had not increased minimum wages for a long time, and the recent move came right after labor groups had initiated strikes in the different part of the nation. It decreased the overall production, increased the idle time, which forced the companies to make some corrections to their wage structure.
It’s been over six years when a mass decision like this has been taken in the U.S. retail industry. The problem that stands in front of all the companies is that if they don’t increase the minimum wages, then they might leave and join other companies who have agreed to pay higher wages. It has increased the fear of unemployment for the first time in years.
Labor activists have stated that the hike in minimum wages at the major retail stores will give them an edge while carrying out the protest at drugstores. U.S. drug industry is one of the largest and fastest growing industries in the world; hence, the labors that put in hours of hard work on a daily basis deserve to be paid well.
As per the reports, The United Food and Commercial Workers International, a prominent labor union states that it will elevate efforts to motivate the workers of Walgreens Boots Alliance Inc to demand higher pay. UFCW is the largest drug retailer in U.S.