Circuit city was already in the hole, target started while they stil could get out of the hole. There are always going to be people to work at target now with atarting pay being increased. What would you rather have a $.50 raise forever employee, or a $1.00 increase for base pay for everyone, which some may not be affected, but it will keep employees around longer, which then lessen your work load?
First off, Circuit City may have been a doomed company either way but most believe that their choice to lay off experienced and successful workers and replace them with untrained minimum wage replacements backfired
http://www.washingtonpost.com/wp-dyn/content/article/2007/05/01/AR2007050101623.html
To respond to your question, I would rather see a 50 cent raise for all employees given those 2 options. I'm not interested in lessening workloads I'm interested in increasing productivity and with a wage increase for everyone, that means you can increase expectations for everyone (within reason).
If Target wants a real, long lasting solution, they need to get serious about paying for performance. The discrepancy of productivity between employees does not correlate with wages which is upsetting and ultimately the reason why myself and other less invested, hard-working employees left the company.
At the grocery store I work at, we can throw a 2500 piece truck, work backroom, face, set sales planners, and hand order with about 90 hours of labor. The reason is, that job is union and everyone is held to very high standards. In return, we get scheduled raises up to a max rate of $18.31/hr, guaranteed minimum hours, and healthcare that is on par with municipal government workers for $5/week.
I looked at an old grid, my Target used 210 hours for a truck that size just to unload, stock, and do early am backroom. Thinking back on that, the employees with 6-7+ years had significantly higher productivity levels than ones hired later. The more productive employees were only paid about 20-30% more than the less productive employees but the difference in terms of actual productivity was close to 100%. (Meaning a $9/hr employee is half as productive as a $12/hr employee). That was caused by the lack of pay progression more so than the low starting wage. A $1 increase to base pay might increase the number of applicants but the difference in turnover will likely be minuscule.
So in my opinion, a $1 increase to base pay that only affects new hires and those making under base pay would be less effective in increasing productivity than a $.50 increase for everyone.