Big Boxes, Small Paychecks

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BIG BOXES, SMALL PAYCHECKS How the Retail Lobby Blocks Increases in the Minimum Wage MINNESOTANS FOR A FAIR ECONOMY MARCH 2014

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New report highlighting the corporate backed Minnesota Retailer Association's role in opposing a $9.50 minimum wage indexed to inflation in Minnesota.

Transcript of Big Boxes, Small Paychecks

  • BIG BOXES, SMALL PAYCHECKS How the Retail Lobby Blocks Increases in the Minimum Wage

    MINNESOTANS FOR A FAIR ECONOMY MARCH 2014

  • BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage 3

    The National

    Retail Federation

    and Retail

    Industry Leaders

    Association spent

    almost $10 million

    on DC lobbyists in

    2012.

    A full-time

    worker at these

    wages earns less

    than $18,500

    well below the

    poverty line

    and not nearly

    enough to

    provide basic

    needs for their

    families.

    INTRODUCTION

    There are more than 15 million workers in retail stores in the U.S.,1 so it is not surprising that the industry spends a lot of money to keep wages down. The National Retail Federation (NRF) and the Retail Industry Leaders Association (RILA) have been waging fierce lobbying campaigns to prevent increases in the minimum wage.

    These two associations spent almost $10 million on DC lobbyists in 2012 alone.2 These associat ions are also extremely powerful at the state level, working in conjunct ion with local lobbying groups to deceive the public about the impact of rais ing the minimum wage.

    The retai l t rade associat ions portray their members as small mom and pop businesses because this plays well pol it ical ly and gives poli t ic ians cover. In reality, some of the biggest corporat ions in the country are the most influent ial members of the associat ions. For instance, the Minnesota Retai lers Associat ion includes over 200 companies, but Target is by far the largest source of funds. Target execut ives have made two-thirds of all contributions to the Associations PAC since 2000. 3

    Brands like Target and Walmart spend millions on advertising to make their brands household names, but when it comes to things like keeping workers in poverty, they prefer to hide behind their lobby associations. Both Target and Walmart say they have not taken a position on increasing the minimum wage,4 but their political contributions and leadership in industry trade associations make it clear that the two largest retailers oppose raising the minimum wage.

    The recent strikes at Walmart and by janitors who clean Target and other big box stores have pierced the veil of these two associations and exposed the poverty wages the retail industry pays its workers.

    The average hourly wage of a Wal-Mart sales associate is just $8.86 and for a cashier its $8.51. The average pay for cashiers at Target is $8.10/hour, while the pay for sales floor team members is only slightly higher -- $8.34/hour.5

    A full-time worker at these wages earns less than $18,500 well below the poverty line and not nearly enough to provide food, housing, health care, transportation and other basic needs for their families.6 However, over half of the workers in these positions at Target and Wal-Mart dont even earn this much because they are involuntarily part-time.7

    The situation is not much different at other retail stores. According to the Bureau of Labor Statistics, the typical retail sales person earns just $10.29 per hour.8 Cashiers earn even less an average hourly wage of $9.12.9

  • BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage 4

    Target and

    Walmart

    CEOs each

    received $20

    million in

    compensation

    about

    $10,000/ hour

    or 1,300 times

    the minimum

    wage.

    Over 20,000

    Big Box

    employees in

    Minnesota are

    enrolled in a

    public

    assistance

    program for

    themselves or

    their families.

    Benefits are also scarce for retail department store workers who say that the health plans are too expensive or inaccessible. Only about half of Walmart associates are covered by the companys health plan,10 while only about a third of Target store team members participate in Targets plan.11

    Opponents of raising the minimum wage claim that low wage jobs are mostly for teenagers, yet more than 95 percent of year round employees at large retail companies are ages 20 and above and more than half (54.2%) contribute at least 50 percent of their familys total income. A large number of them almost 1 in 5 are the sole earner for their family.12

    Bruce Nustad, the president of the Minnesota Retailers Association, said last year that raising the minimum wage higher than the federal amount would force businesses to make difficult choices such as setting aside plans for expansion or capital investments or cutting workers hours. Theres this fantasy perception that theres this incredible amount of [profit] margin in retail, Nustad said. I dont know where that came from.13

    The perception could have come from the fact that the two largest retailers in Minnesota and in the U.S., Walmart and Target, both posted record profits in 2012 of $17 billion and $3 billion respectively,14 and the CEOs of both companies received over $20 million in compensation in 201215 about $10,000 an hour or 1,300 times more than the minimum wage.

    The NRF touts retail as a force for strong economic expansion, job creation, and business growth.16 However, the combination of poverty wages and no benefits, often coupled with part-time hours, means that many of the families of retail workers must rely on taxpayer-funded safety net programs.

    We estimate that over 20,000 Big Box department store employees in Minnesota are enrolled in a public assistance program for themselves or family members, at a cost of over $150 million a year to taxpayers.

    Included in this total is $45 million a year that taxpayers pay to help almost 6,000 Target store employees in Minnesota who must rely on public assistance and $41 million a year to help 5,300 Walmart employees in Minnesota.

    In state after state, Walmart, Target, and other Big Box retailers are among the employers with the most employees receiving public assistance. This shifting of labor costs on to the taxpayers amounts to a public subsidy for Big Box corporate giants and provides an unfair financial advantage over others.

    Raising wages for Big Box retail workers would benefit individual workers, their families and community, and taxpayers. The more that Target and Walmart pay their workers, the less it will cost taxpayers to provide public assistance.

  • BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage 5

    OPPOSITION TO RAISING THE MINIMUM WAGE

    Both Target and Walmart say they have not taken a position on increasing the minimum wage, yet their political contributions and leadership in industry trade associations make it clear that the two largest retailers oppose raising the minimum wage at the federal or state level.

    Minnesota Retailers Association

    The Minnesota Retailers Association is a trade group representing over 200 member businesses with more than 1,500 retail stores in the state.

    Target executives have made 65% of all contributions to the PAC since 200017 -- making Target by far the largest contributor.

    The Association opposes raising the state minimum wage above the federal amount. It opposes indexing and fought last session against both the bill that passed the House to raise the minimum wage to $9.50 and the version that passed the Senate to raise it to $7.75.

    The Associations board is made up of lobbyists from a number of other Big Box retail stores, such as Walmart, Home Depot, Sears, JC Penney and Macys, in addition to Target. The Best Buy lobbyist chairs the groups legislative committee.

    The Associations 2014 Day at the Capitol will focus on lobbying against indexing future minimum wage increases to inflation. The lobby days main sponsors are Big Box corporations whose CEOS are not only among the highest paid in Minnesota, but they also received large increases in their compensation from 2009 2012. Corporation CEO 2009

    Compensation

    2012

    Compensation

    Percentage

    Increase

    Best Buy18 Brian

    Dunn

    $2.4 million $8.2 million 245%

    Walgreens19 Gregory

    Wasson

    $6 million $12 million 100%

    Target20 Gregg

    Steinhafel

    $16.1 million $23.5 million 46%

    Target executives gave over $115,000 since 2003 to the Retailers Association and other state business PACs21 that in turn spent over $525,000 in contributions and independent expenditures to support state legislators who voted against raising the minimum wage.

    The MN Retailers

    Association fought

    against both the

    House bill to raise

    the wage to $9.50

    and the Senate

    version to raise it

    to $7.75.

    Target execs have

    made two-thirds of

    all contributions to

    the MN Retailers

    Association PAC

    since 2000.

  • BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage 6

    Political Contributions

    In March 2013, the U.S. House of Representatives rejected a bill to raise the federal minimum wage from $7.25 per hour to $10.10 by 2015.

    Rep. John Kline (R-MN) led the opposition to the bill, saying We need jobs out there. The best approach right now is to get federal spending under control and government out of the way of the nations job creators.22

    o Klines largest single source of campaign funds has been from Target executives, their family members, and the companys political action committee (PAC). Since 2005, they have given Kline $125,000 in contributions, more than to any other current member of congress. 23

    Walmart has contributed over $30,000 to eight US Representatives since 2008. Six of them voted against the minimum wage increase last year.24

    Retail Industry Leaders Association

    The Retail Industry Leaders Association (RILA) is a leading public policy advocate for retail corporations. Its members represent more than $1.5 trillion in sales and operate more than 100,000 stores, manufacturing facilities, and distribution centers in the world.

    RILA opposes any increase in the minimum wage and does not believe that states and localities should impose a patchwork of employment regulations on employers.25

    Target CEO Gregg Steinhafel served as the 2013 chair of the national Retail Industry Leaders Association (RILA).

    In addition to Steinhafel, RILAs board is comprised of the CEOs from other big box retail companies including Walmart, Best Buy, Lowes, Home Depot, Sears, and Kmart.

    Since 2010, RILA has contributed almost two and a half times more to the U.S. Representatives who voted against raising the minimum wage in 2013 than to the ones who voted for it.26

    Minnesota Forward

    In 2010 Target gave $150,000, the largest single contribution, to the Minnesota Forward PAC which was created to elect Tom Emmer governor. After coming under fire because of Emmers anti-gay positions, Target explained that it had made the contribution because it supported Emmers plans for economic growth and job creation and that Emmer would create a positive environment for businesses. One of Emmers main proposed economic policies was to lower the minimum wage for waiters and waitresses.27

    Target has been the

    single largest

    source of campaign

    funds to Rep. John

    Kline, who led the

    opposition against

    raising the federal

    minimum wage

    last year.

    The Retail

    Industry Leaders

    Association gave

    2 times more to

    Representatives

    who voted against

    raising the

    minimum wage

    compared to the

    ones who voted in

    favor of it.

  • BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage 7

    TAXPAYER SUBSIDIES OF POVERTY WAGES IN MN

    Low wages not only harm workers and their families they cost taxpayers. When Big Box retail employees are unable to afford the basic necessities of life, taxpayers pick up the tab for the public benefit programs that workers need in order to get by.

    Based on the utilization rates by working families of Medicaid, Food Stamps, the Earned Income Tax Credit and Temporary Assistance for Needy Families, we estimate that over 20,000 Big Box department store employees in Minnesota are enrolled in one of these four public assistance programs for themselves or family members, at a cost of over $150 million a year to taxpayers. 28

    Included in this total is $45 million a year from taxpayers to help almost 6,000 Target employees in Minnesota who must rely on public assistance and $41 million a year to help 5,300 Walmart employees in Minnesota.

    Big Box Employees on Public Assistance in Minnesota29

    We estimate

    that over

    20,000 Big Box

    retail store

    workers in

    Minnesota are

    enrolled in

    some form of

    public

    assistance

    program either

    for themselves

    or for family

    members, at a

    cost of $150

    million a year

    to taxpayers.

  • BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage 8

    TOTAL

    The low wages,

    combined with

    involuntary part-

    time hours and

    no benefits, mean

    that the families

    of many Big Box

    retail workers

    must rely on

    taxpayer-funded

    safety net pro-

    grams to make

    ends meet.

    SUBSIDIZED HEALTH CARE

    In state after state, Walmart, Target, and other Big Box retailers are among the employers with the most employees receiving public assistance.

    MASSACHUSETTS In 2010, over 4,300 Walmart employees in Massachusetts, a quarter of the companys total workforce in the state, used subsidized health care for themselves or family members, costing taxpayers $14.6 million. Over 2,600 Target employees,30 more than a third of the companys Massachusetts workforce, used subsidized care, costing the state $8.3 million. 31 Big Box retail chains made up ten of the thirty companies with the most employees on Medicaid in Massachusetts.

    RANK # $ BY

    COST EMPLOYER

    EMPLOYEES USING

    SUBSIDIZED CARE

    COST FOR EMPLOYEES & COVERED

    DEPENDENTS

    1 WAL-MART 4,327 $14,602,933 4 TARGET 2,610 $8,325,571 8 HOME DEPOT 1,929 $5,678.420 14 MACYS 1,723 $4,059,919 16 TJ MAXX 1,027 $3,280,228 19 KOHLS 969 $2,743,794 20 MARSHALLS 900 $2,648,489 24 LOWES 826 $2,211,397 25 SEARS/ KMART 1,052 $2,124,144

  • BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage 9

    RANK # # BY

    TOTAL COST

    EMPLOYER EMPLOYEES ENROLLED

    SPOUSE/ DEPENDENTS ENROLLED

    TOTAL ENROLLED

    1 WAL-MART 2,306 4,993 7,299 2 TARGET 1,199 2,379 3,578 3 LORD&TAYLOR 1,008 1,945 2,953 5 TOYS R US 771 1,513 2,284 6 KMART 746 1,646 2,392 12 KOHLS 565 1,120 1,685 14 HOME DEPOT 487 1,188 1,675 18 SEARS 456 854 1,326 23 JC PENNEY 373 733 1,106 28 MARSHALLS 328 580 908

    WISCONSIN

    Retail Employers in New Jersey with Most Employees Receiving Subsidized Care32

    In Wisconsin, over 3,200 Walmart employees are enrolled in Badger Care, the states Medicaid program, accounting for a total of 9,200 enrollees including the children and adult dependents of these employees. Six other Big Box retail stores were also among the employers with the most employees receiving subsi- dized care. 33

    # #

    RANK EMPLOYER EMPLOYEES ENROLLED

    TOTAL ENROLLED INCLUDING ADULT DEPENDENTS & CHILDREN

    1 WAL-MART 3,216 9,207

    4 MENARDS 784 2,245

    11 TARGET 562 1,592

    15 KOHLS 508 1,340

    27 KMART 278 772

    34 HOME DEPOT 242 663

    46 SEARS 217 580

    Retail Employers in Wisconsin with Most Employees Receiving Subsidized Care33

    NEW JERSEY In New Jersey, Walmart and Target are the top two employers with the most employees enrolled in the states Medicaid program, followed by many of the same Big Box retail stores as on the above Massachusetts list.

  • BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage 10

    In Ohio,

    almost 15,000

    Walmart

    employees

    receive food

    stamps.

    OTHER PUBLIC ASSISTANCE

    Most state reporting has only included data on Medicaid and not other public assistance programs. In addition, the data has only reflected the actual enrollment in the Medicaid programs. The number of Big Box employees and dependents who are eligible to participate is likely much higher.

    It is clear that Walmart, Target, and other Big Box retail store employees must also rely on additional public benefits. For instance, in Florida, over 9,000 Walmart employees receive food stamps.34 In California, a study found that the average Walmart worker required $730 in taxpayer-subsidized healthcare and $1,222 in other types of public assistance, such as food stamps and subsidized housing per year to get by.35

    OHIO Data from the state Department of Jobs and Family Services shows that Walmart had more employees or household members on food stamps (14,684) or Medicaid (14,056) than any other company in the state. Target was 11th for most employees or family members on Medicaid (2,479) and food stamps (2,383).36

    The number of Walmart employees or household members in Ohio on public assistance almost doubled from the previous five years, and it was not related to an overall increase in employees. There was a 74 percent increase in the number of Walmart employees receiving food stamps and a 95 percent increase in the number enrolled in Medicaid, while Walmarts total employment in the state declined by 10 percent during this period.37

    RANK EMPLOYER

    # EMPLOYEES &

    FAMILY MEMBERS ENROLLED

    RANK EMPLOYER

    # EMPLOYEES &

    FAMILY MEMBERS ENROLLED

    1 WAL-MART 17,679 14 TARGET 2,602 16 LOWES 2,470 21 SEARS 2,155 33 JC PENNEY 1,631 29 K-MART 1,686 27 KOHLS 1,876 28 HOME DEPOT 1,874 40 MACYS 1,481

    1 WAL-MART 14,684 13 TARGET 2,201 17 SEARS 1,860 20 LOWES 1,787 26 KMART 1,546 27 HOME DEPOT 1,546 29 KOHLS 1,494 39 JC PENNEY 1,256 40 MACYS 1,217

    Ohio Medicaid Enrollment - January 2012 Ohio Food Stamps Enrollment - January 2012

  • BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage 11

    OTHER PUBLIC ASSISTANCE

    WISCONSIN In a report earlier this year, the U.S. House Committee on Education and the Workforce estimated that a single 300 employee Walmart Supercenter store in Wisconsin costs taxpayers between $900,000 and $1.7 million per year or $3,000 to $5,800 per employee.38 The lower estimate assumes that only those workers enrolled in Badger Care also enroll in other taxpayer-funded programs. The upper estimate assumes that an additional quarter of a stores employees enroll in other taxpayer-funded programs.

    When Big Box

    retail employees

    are unable to

    afford the basic

    necessities of life

    taxpayers pick

    up the tab for

    the public PUBLIC ASSISTANCE PROGRAM

    Free & reduced price lunches (under the National School Lunch Program)

    Free & reduced-price breakfasts (under the School Breakfast Program) Subsidized housing assistance (Section 8) Earned Income Tax Credit Medicaid Enrollment under Badger Care Low Income Home Energy Assistance Program (LIHEAP) Supplemental Nutrition Assistance Program (formerly Food Stamp program) Wisconsin Shares Child Care Subsidy

    LOW-END ESTIMATE

    $25,461

    $12,938

    $155,406 $72,160

    $251,706 $11,414

    $96,007

    $279,450

    UPPER-END ESTIMATE

    $58,228

    $29,588

    $355,350 $165,000 $251,706

    $26,100

    $219,528 $639,090

    benefit programs

    that workers

    need in order to

    get by.

    TOTAL $904,542 $1,744,590

  • BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage 12

    Widespread

    practices of

    involuntary

    part-time work

    and unstable

    scheduling by

    Big Box stores

    push retail

    workers

    incomes even

    lower.

    INVOLUNTARY PART-TIME WORK

    Widespread practices of involuntary part-time work and unstable scheduling by Big Box department stores push the incomes of retail workers even lower. Nationally the number of involuntary part-time retail workers (those who would rather have full-time hours) has increased 144 percent from 644,000 in 2006 to 1.5 million in 2010.39

    The retail industry has embraced just-in-time computerized scheduling systems, which are designed to cut costs by matching staff size to customer traffic hour by hour. This gives managers increased flexibility, but for workers it means unpredictable schedules that vary from week to week and even day to day. Retail workers are expected to keep their schedules open in case they may be needed and to call in on the days theyre scheduled to see if they should come to work that day.40 These scheduling systems allow Big Box stores to manage a large part-time labor force working short shifts that can easily be changed.41

    According to data that Walmart reported to the Partnership for a Healthy America, more than half of the employees hired to work in new stores were hired on a part-time basis.42

    Target has said at different times and in different settings that part-time employees make up between 55 percent and 80 percent of its retail workforce. Target said that 55 percent of the workers at a proposed Supercenter in San Rafael, CA would be part-time. However, a Target human resource manager told the San Rafael City Council that on average 65 percent of team members were part-time. Targets own materials say that approximately 80 to 85 percent of employees per store are part-time.43

  • BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage 13

    BIG BOX RETAIL STORES USE OF CONTRACTED CLEANING COMPANIES

    Its not just workers employed directly by Big Box retail stores who are paid poverty wages. In order to cut costs and avoid responsibility, many Big Box stores often contract out their janitorial work. There is fierce competition among the janitorial companies for these contracts, with each company trying to underbid the other. Since labor is by far the largest and most costly expense in a cleaning contract, the company with the lowest labor costs tends to win the contract. In some cases, the janitorial companies try to reduce their labor costs with practices such as paying below minimum wage or not paying overtime.

    A number of the companies that clean Big Box stores in Minnesota have been the subjects of lawsuits and Department of Labor investigations for not paying their workers the overtime wages they earned.

    Diversified Maintenance, which is based in Florida, is the largest janitorial service provider to Target, with contracts covering over 600 stores nation- wide.44 Last year, the company settled a lawsuit for $675,00045 that had been filed by workers in Minnesota alleging that:

    This is not an isolated case. In the last ten years, Diversified has settled at

    least nine private lawsuits as well as six investigations by the U.S. Department of Labor (DOL), all alleging violations of minimum wage and overtime laws. One of the DOL investigations in Minnesota found that not only did Diversi- fied require employees to work seven days a week without any overtime pay, but Diversified also held new employees pay as a deposit that they would receive when they left the company.46

    Unfortunately, these problems pervade the retail janitorial industry. Other cleaning companies with which Twin Cities Big Box stores contract have also been the subjects of similar lawsuits and Department of Labor investigations for not paying their workers the overtime wages they earned.

    In order to

    cut costs and

    avoid respon-

    sibility, many

    Big Box stores

    often contract

    out their

    janitorial work.

    Employees regularly worked 56-60 hours a week without full overtime pay.

    Employees were required to work seven days a week six days under their own name and one day under a ghost name.

  • BIG BOXES, SMALL PAYCHECKS: How the Retail Lobby Blocks Increases in the Minimum Wage 14

    In some cases,

    the janitorial

    companies try

    to reduce their

    labor costs with

    practices such

    as paying below

    minimum wage

    or not paying

    overtime.

    BIG BOX RETAIL STORES USE OF CONTRACTED CLEANING COMPANIES

    Prestige Maintenance, based in Plano, TX also cleans Target stores in

    Minnesota. In 2009 the company settled a lawsuit brought by sixteen of its workers who claimed the company owed them overtime pay. The workers who brought the lawsuit cleaned Target stores in Maryland overnight from 10:30 p.m. to 8:00 am every night.47

    Prior to the lawsuit, Prestige Maintenance was investigated by the Department of Labor at least three times, resulting in more than 400 violations for failing to pay overtime to workers in Minnesota, Florida, and New York.48

    The way in which Target drove the prices down so low in its janitorial con- tracts came to light in another lawsuit brought by cleaning workers in Texas. Target controlled the bidding process in a way that pitted its cleaning contractors against one another, forcing them to underbid each other. Target structured this bidding process to consist of three rounds with a rule that each cleaning contractor could submit a lower bid but not a higher bid in each successive round.49

  • 15

    TAKE ACTION! Raising wages for Big Box retail workers will benefit individual workers, their families and community, and taxpayers. The more that Target and Walmart pay their workers, the less it will cost taxpayers to provide public assistance.

    Unlike manufacturers that must compete with offshore producers that have lower labor and production costs, Big Box retail stores compete with each other. The low-wage structure of the industry is not due to the competitive global market, but rather a mixture of market conditions and policy changes.50

    One of the main arguments against raising the minimum wage is that consumers would suffer higher prices, but economic analysis has shown that even if retailers passed the entire cost on to consumers instead of paying for it by cutting CEO compensation or redirecting unproductive profits, raising the pay of retail workers to $25,000 a year ($12/hour) would cost consumers just pennies more per shopping trip. But productivity gains and new consumer spending associated with the raise make it unlikely that stores would need to generate the entire cost If retailers passed half the cost of a wage increase on to their customers, the average household would pay just 15 cents more per shopping trip or $17.73 per year.51

    Pay in the Big Box industry could be increased through a variety of means.

    1. Target, Walmart, and other Big Box stores should pay a living wage. The Minneapolis and St. Paul City Councils have set $14.41/hr as their current living wage levels,52 almost double what some retail workers are currently paid. 2. The State of Minnesota should raise its minimum wage. Many retail workers earn close to the minimum wage and would benefit from an increase in the minimum wage. The Minnesota House last year passed HF 92 to raise the minimum to $9.50/hr, indexed to inflation. However, differences with the Senate legislation kept the bill stuck in conference committee at the end of session.

    3. Target and Walmart should stop interfering with their employees rights to speak out for better jobs. Big Box retail employers could listen to their employees calls for change, rather than retaliate against them for speaking out. Last year, a federal judge set aside an unsuccessful unionization election at a Target store in New York State and ordered a new vote, finding that Target managers had intimidated workers and violated federal labor laws.53 Walmart workers report regular aggressive acts of intimidation and retaliation by the company against workers who try to exercise their rights to stand up and speak out for fair treatment and respect at work.

    4. Target and other Big Box stores should use responsible cleaning contractors. Responsible contractors compensate workers at or above prevailing wages and benefits, seek to maximize continuity at workplaces, prioritize worker safety, respect the right of their employees to bargain collectively, and provide employees with a bona-fide grievance procedure.

    Improving wages

    and benefits at

    Big Box retail

    stores will not

    only improve the

    standard of

    living of lower-

    income families,

    it will also

    reduce the public

    cost of the

    poverty wages

    paid by Target,

    Walmart, and

    other Big Box

    retailers.

  • 16

    CITATIONS 1 Retails Hidden Potential: How Raising Wages Would Benefit Workers, the Industry, and the Overall Economy, Catherine Ruetschlin,

    Demos, November 2012 2 Center for Responsive Politics using data from the Senate Office of Public Records

    3 Data from the Minnesota Campaign Finance and Public Disclosure Board

    4 Retailers weigh in on minimum wage increase, SFGate, Renee Dudley, February 20, 2014

    5 Why arent Target employees striking like their cousins at Walmart,? Motley Fool, Natalie OReilly, November 16, 2013

    6 Federal poverty level for a family of four is $23,550.

    7 The Low-Wage Drag on Our Economy: Wal-Marts low wages and their effect on taxpayers and economic growth, US House

    Committee on Education and the Workforce, May 2013 8 Occupational Outlook Handbook, 2014-15 Edition, Retail Sales Workers, Bureau of Labor Statistics, U.S. Dept of Labor, Jan 8, 2014

    9 Occupational Outlook Handbook, 2014-15 Edition, Cashiers, Bureau of Labor Statistics, U.S. Department of Labor, January 8, 2014

    10 US Committee on Education and the Workforce, May 2013

    11 Conditions for Workers at Target: Estimates for a Proposed California Supercenter, Jeannette Wicks-Lin, University of

    Massachusetts, Political Economy Research Institute, April 2011 12

    Ruetschlin, November 2012 13

    House, Senate gird for battle over wage, Politics in Minnesota, Mike Mullen, March 27, 2013 14

    Target 2012 Annual Report 15

    Target 2013 Proxy Statement and Walmart CEOs Pay Jumps 14.1 Percent to $20.7 Million, Huffington Post, Jessica Wohl, 4/ 22/13 16

    National Retail Federation website 17

    Data from the Minnesota Campaign Finance and Public Disclosure Board 18

    Best Buy 2013 and 2010 Proxy Statements 19

    Walgreens 2013 and 2010 Proxy Statements 20

    Target 2013 and 2010 Proxy Statements 21

    Mullen, March 2013 22

    6 Democrats Betray 30 Million Workers on Minimum Wage, Daily Kos, Bud Meyers, March 19, 2013. 23

    Based on data from the Center for Responsive Politics and InfluenceExplorer.com , Target Corp and John Kline 24

    Based on data from Center for Responsive Politics, John Barrow (D-GA), John Boehner (R-OH), Dave Camp (R-MI), Eric Cantor (R-VA),

    Mario Diaz-Balart (R-FL), and Jim Matheson (D-UT) voted against raising the minimum wage. Xavier Becerra (D-CA), Henry Cuellar (D

    -TX) voted to raise the minimum wage 25

    RILA 2006 Public Policy Agenda 26

    Based on data from Center for Responsive Politics 27

    Emmer: Lower wages for tipped workers, Star Tribune, Jackie Crosby, July 5, 2010 28

    Fast Food, Poverty Wages: The Public Cost of Low-Wage Jobs in the Fast Food Industry, University of Illinois at Urbana Champaign

    Department of Urban and Regional Planning and University of California Berkeley Center for Labor Research and Education, Sylvia

    Allegretto, Marc Dousard, Dave Graham-Squire, Ken Jacobs, Dan Thompson and Jeremey Thompson, October 2013 29

    - Based on 260 employees per Target store Long Island Target Store May Be The First to Unionize, 6/17/11, CBS News,

    - Based on 281 employees per Walmart, Walmart Strains to Keep Aisles Stocked Fresh, New York Times, Stephanie Clifford, 4/3/13

    (Does not include Sams Club stores)

    - Based on 140 employees per Menards ,Menards pushes bigger is better approach, Matt M. Johnson, 4/8/11, Finance and Commerce

    - Based on 150 employees per Home Depot, Big Box retailers to get even bigger, Florida Times-Union, 12/17/11, Moshay Simpson

    - JC Penney has 116,000 employees and 1,104 stores. J.C. Penney Company Inc., 2012 Form 10k

    - Macys, Inc. Stores by State,

    - Based on an average of 130 employees per Best Buy (145,000 employees and 1,055 stores)

    - Based on an average of 120 employees per Kohls.(140,000 associates and 1,100 stores).

    - Based on 102 employees/store, Marshalls Gets Mixed Reviews, Kamilla Plambeck, 8/5/11, Santa Barbara Independent

    - Based on 100-150 employees per Kmart store, Simpson, December 2011

    - Based on 175 employees per Lowes store, Simpson, December 2011

    - Based on 100-150 employees per Sears store, Simpson, December 2011 30

    New Data Show How Big Chains Free Ride on Taxpayers at the Expense of Responsible Small Businesses Stacy Mitchell, June 7, 2013, Institute for Local Self-Reliance

    31 Employers Who Had Fifty or More Employees Using MassHealth, Commonwealth Care, or the Health Safety Net in State Fiscal

    Year 2010, Commonwealth of Massachusetts, Center for Health Information and Analysis, Feb 2013 32

    2011 Annual Report on Access to Employer-based Health Insurance, New Jersey Department of Human services 33

    BadgerCare by Enrollment by Employer, Q4 202,Wisconsin Department of Human Services 34

    Alan Grayson says more Walmart employees on Medicaid, food stamps than other companies, Tampa Bay Times PolitiFact, Dec. 6, 2012 35

    The Hidden Cost of Wal-Mart Jobs, Arindajit Dube and Ken Jacobs,August 2, 2004 36

    Taxpayers subsidizing low-paid employees, Dayton Daily News, Cornelius Frolik, Josh Sweigart, July 22, 2013, 37

    Dayton Daily News, July 22, 2013 38

    US Committee on Education and the Workforce, May 2013

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    Discounted Jobs: How Retailers Sell Workers Short 2012, Stephanie Luce, City University of New York CUNY Murphy Institute

    and Nooki Fujita, Retail Action Project 40Abercrombie and Fitch, Other Retail Workers Protest Abusive Scheduling, 10/17/12, Good Morning America, Susanna Kim 41

    More People pushed into part-time work force Wall Street Journal, Kris Maher, March 8, 2008, 42

    US Committee on Education and the Workforce, May 2013 43

    Wicks-Lin, April 2011 44

    Diversified Maintenance Systems Hits Several Major Milestones in 2011, July 12, 2011 press release 45

    Alvarez et al. v. Diversified Maintenance Systems, LLC et al, No. 0:11-cv-03106-SRN-TNL US District Court, District of MN 46

    US Department of Labor, Case ID: 1479614, Minneapolis, MN District Office, Local filing number 2007-250-03336 47

    Overtime suit in U.S. District Court for the District of Maryland in Greenbelt settles for up to $3.8 million, Caryn Timber, Daily Record, 12/9/09 48

    U.S. Department of Labor Wage and Hour Division Case IDs 1183955, 1351131, and 1147129 49

    Juan Isidro Itzep, et al. v.Target Corporation, et al. , Civil Action No. SA-06-CA-0568-XR, United States District Court,Western District of Texas, San Antonio Division 50

    Allegretto, et al,, October 2013. 51

    Allegretto, et al,, October 2013 52

    City of Minneapolis Living Wage Ordinance/ Business Subsidy Act Programs Employment Requirements and Training Opportunities, and St. Paul

    Administrative Code, Chapter 98 53

    Union Gets New Election at a Target, New York Times, Steven Greenhouse, May 21, 2012.

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