Companies in Action
Target announces pay raises, bonuses and new benefits amid coronavirus pandemic. The coronavirus crisis is taking a toll on the global workforce unlike anything else that we have experienced in recent decades. Industry leaders are recognizing employees for their work and stepping up with enhanced benefits. At Target, in response to the pandemic and in recognition of the valuable work conducted by frontline team members, the company announced a $300 million investment in wages, bonuses, paid leave and benefits. Among these, the retailer temporarily raised employee wages by $2 an hour, raising the minimum wage to $15 an hour and meeting the company’s target to reach this threshold by the end of 2020. This action puts Target on a path to paying its employees a livable wage, one step among many that is needed to fully respect workers' rights. In addition to the pay raise, the company will also provide free, safe and reliable backup care for loved ones and paid leave for team members. For employees with underlying medical conditions, who are pregnant or over 65 years old, the plan also provides a 30-day paid leave benefit.
PVH Corp. commits to achieving living wages for its workers through collective bargaining. Leading companies in the apparel sector are making bold commitments to achieving living wages.Their success is dictated in part by meaningful public-private partnerships that can scale impact. PVH has recognized this challenge and, in 2018, the company committed to advancing living wages in its supply chain as part of its broader sustainability strategy—Fashion Forward. The company has set a priority to create conditions for national living wage agreements through industry-wide collective bargaining. In support of this, the company has set a target that by 2025 all of its key suppliers in two of its priority production countries will proactively support collective bargaining to achieve living wages and that the company will expand that to all key suppliers across four of its priority production countries by 2030. In 2018, PVH was the first U.S. company to join ACT (Action, Collaboration, Transformation), a collaboration of global brands and retailers. The company that year also joined IndustriALL Global Union, a global union federation representing more than 50 million working people committed to achieving living wages for industry workers through collective bargaining linked to purchasing practices. As part of its membership, PVH commits to assessing and strengthening its business practices to enable suppliers to pay workers the agreed upon living wage and train global associates on the responsible sourcing expectations and buying practices to integrate commitments throughout the company.
Gap Inc. fosters financial inclusion across its supply chain partners. A strong focus on supplier engagement and capacity building has been at the core of Gap's sustainability efforts for over a decade. More than 80% of the workers in the textile supply chain are women, and they often live in a cash-only environment without access to adequate financial services. Based on its commitment to empowering supply chain partners and fostering inclusivity, Gap announced a transition from a cash-based system to digital payments by 2020. While 60% of Gap' supply chain already operates with digital payments, this commitment aims to expand the reach across the company's global supply chain and draw previously unbanked workers into the formal financial system. Gap has partnered with the UN-based Better than Cash Alliance, a multi-stakeholder partnership that is working to accelerate the transition from cash to digital payments in an effort to address poverty and drive inclusive growth.