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Costco Wholesale Corp. said it would raise its minimum wage for store workers for the first time in nine years, the latest U.S. retailer to respond to a tightening labor market.
The second-largest U.S. retailer by sales said that starting this month it will increase entry-level wages by $1.50 to $13 an hour. The retailer had 205,000 employees at the end of August, including 88,000 part-time workers.
The decision follows a similar move by Wal-Mart Stores Inc. and other big U.S. chains that are boosting their starting pay this year. Wal-Mart gave all its U.S. hourly store employees a raise of at least 2% last month and raised its minimum to $10 an hour.
Minimum-wage increases took effect in 20 states last year, and several of the biggest employers of hourly workers, including McDonald’s Corp. and Starbucks Corp., have raised their starting pay. Retail workers in the U.S. earned an average of $14.95 an hour in December, up 3.6% from a year earlier, according to the Bureau of Labor Statistics.
Target Corp. executives on Wednesday said they would be stepping up investments in store labor, which includes hiring higher-paid staffers called visual merchants who manage displays of products. As far as broader wage pressure, Target says it will pay wages that are competitive with the local market.
So the people who have been working there a while and now make $13 hr, are they still only going to make $13 an hour or will they get bumped up too? Only seems fair. Why should they make the entry level wage if they've been there 2 years? So will the cart boy who started at $11.50 and is now making $12.50 get bumped up to $14? And will the register girl making $14 be mad she makes the same as the cart boy and expect to be paid $17. And will the Head cashier want to go from $18 to $24? And will the department manager want from $28 to $35?? ITS MADNESS!!!!!
Well maybe not that far.. but If I worked there 2 years and worked my way up to $13hr and $13hr became the new entry number I'd be pretty angry if I didn't also get a boost in pay.
So the people who have been working there a while and now make $13 hr, are they still only going to make $13 an hour or will they get bumped up too? Only seems fair. Why should they make the entry level wage if they've been there 2 years? So will the cart boy who started at $11.50 and is now making $12.50 get bumped up to $14? And will the register girl making $14 be mad she makes the same as the cart boy and expect to be paid $17. And will the Head cashier want to go from $18 to $24? And will the department manager want from $28 to $35?? ITS MADNESS!!!!!
Well maybe not that far.. but If I worked there 2 years and worked my way up to $13hr and $13hr became the new entry number I'd be pretty angry if I didn't also get a boost in pay.
This might answer your question.
Quote:
Costco’s highest hourly pay is about $22.50, and the company plans to give those workers about a 2.5 percent raise this year, Galanti said. It takes a full-time Costco employee about four years to reach the top of the pay scale, he said.
So It look like some part time workers will get 2.5% Raise to stay ahead
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While target, Walmart and the like are raising pay in order to keep their employees quiet and avoid unionization, Costco is doing it for a valid reason, supply and demand, attracting the best workers for their stores.
I find it kind of funny that a company called "Costco Wholesale" is considered the nations second largest retailer.
So I guess the executives, and upper management are getting paid less, and shareholders get less dividends right? But then if Costco's market share goes up, so will its stock value, and they make more money off the selling of shares. But then who do the sell those stocks to, that can pay that price to offset the money they lose by increasing pay?
Or is it simply a case of net profits not being affected much by pay increases for the lowest level employee? If not then do movers and shakers leverage any stocks purchases? The leveraging just means they are printing out more money which is also bad.
Costco is a great company. It's very good news for them, that already do good. If a more "skilled" worker gets hired at the higher pay wage, are they hired part-time or full-time? Does the 2.5% increase apply to them?
I know someone that works for Costco. They pay decent for retail, but their employees work very hard because it's a high volume type of business.
You see the same thing with fast food places like IN N OUT, they also pay above minimum wage..but the stores are always busy..they are high volume and they are held to a certain standard.
Another benefit for them is that they have staff at Costco that stays a long time on average..because they know if they look for another retail job..they won't get paid as well.
Costco is a pretty unique type of business because a lot of their money actually comes from membership fees from members versus profit on the items they sell.
Big operations like Costco or IN N OUT also have huge buying power and can bring costs down. They are rare examples or outliers in their respective industries.
Of course in Los Angeles, by 2020 businesses will have to pay a minimum of $15hr...I expected a lot of closed businesses especially small businesses...because the numbers aren't gong to pencil out for them.
No doubt the pressure from Unions and others that were behind passing this law became too strong for him.
Of course he doesn't run businesses and he doesn't work a minimum wage job ..so it won't affect him.
Both Sanders and now Clinton are supporting a nationwide $15 wage..which would be disastrous for the economy.
So I guess the executives, and upper management are getting paid less, and shareholders get less dividends right? But then if Costco's market share goes up, so will its stock value, and they make more money off the selling of shares. But then who do the sell those stocks to, that can pay that price to offset the money they lose by increasing pay?
Or is it simply a case of net profits not being affected much by pay increases for the lowest level employee? If not then do movers and shakers leverage any stocks purchases? The leveraging just means they are printing out more money which is also bad.
Get ready for membership fees to be increased and the return policy altered to cut down on lost profits.
I was the Operations Manager of the warehouse club "PACE" back in the 1990's before it was bought out by Sam's Club. You would not believe the things that were done to cut down on "shrink". It was like a mob operation the way pallets of inventory were stolen off the delivery trucks when the driver was not looking and then we claimed it was missing from the shipment.
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