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As much as I love Target, Target doesn't pay the best wages around and I'm sure some of their employees are receiving health care on taxpayer's dime.
Exactly.
I think everyone who boycotts Walmart should also boycott Target.
I used to work at Target. I was paid $7.40 an hour. When I got my yearly raise, I got .17 cents. It was the highest raise out of the co workers I worked with.
There was a pregnant girl who worked there. She was full time. Slowly but surely, they reduced her hours. One day, she got called into the office and told she was now part time and not able to receive paid maternity leave and not covered.
The Costco Challenge: An Alternative to Wal-Martization?
But there’s another company that is breaking the Wal-Mart mold: Costco Wholesale Corp., now the fifth-largest retailer in the U.S. While Wal-Mart pays an average of $9.68 an hour, the average hourly wage of employees of the Issaquah, Wash.-based warehouse club operator is $16. After three years a typical full-time Costco worker makes about $42,000, and the company foots 92% of its workers’ health insurance tab.
How does Costco pull it off? How can a discount retail chain pay middle-class wages and still bring in over $880 million in net revenues? And, a cynic may ask, with Wal-Mart wages becoming the norm, why does it bother?
A number of factors explain Costco’s success at building a retail chain both profitable and fair to its workers. But the basic formula is one the labor movement has been advocating for decades: a loyal, well-compensated workforce means a more efficient and productive one.
For example, while CEOs at other major corporations average 531 times the pay of their lowest-paid employees, Sinegal takes only 10 times the pay of his typical employee. His annual salary is $350,000, compared to about $5.3 million awarded to Wal-Mart’s Lee Scott.
The Costco Challenge: An Alternative to Wal-Martization?
But there’s another company that is breaking the Wal-Mart mold: Costco Wholesale Corp., now the fifth-largest retailer in the U.S. While Wal-Mart pays an average of $9.68 an hour, the average hourly wage of employees of the Issaquah, Wash.-based warehouse club operator is $16. After three years a typical full-time Costco worker makes about $42,000, and the company foots 92% of its workers’ health insurance tab.
How does Costco pull it off? How can a discount retail chain pay middle-class wages and still bring in over $880 million in net revenues? And, a cynic may ask, with Wal-Mart wages becoming the norm, why does it bother?
A number of factors explain Costco’s success at building a retail chain both profitable and fair to its workers. But the basic formula is one the labor movement has been advocating for decades: a loyal, well-compensated workforce means a more efficient and productive one.
I applaud Costco for it's achievements. But I think you need to also consider the roots of both companies. Costco is based out of Washington. Wal-Mart is based out of Arkansas. Compared the costs of living between the two lately. The living wage in Arkansas is considerably lower.
Costco started out as a club warehouse retailer, Wal-Mart started out as a traditional retailer. Costco subsidized itself with membership dues, Wal-Mart did not. Costco was able to keep costs lower because it functioned as a warehouse with off-the-street customers, Wal-Mart had the costs of displays and merchandising. Costco was even better positioned to be able to leverage costs with bulk purchases, because warehouse outlets are selling in bigger bulks.
Costco excelled in urban markets. Wal-Mart's base was rural customers. The original stores weren't built in large urban markets, they were built in rural areas. Rural areas where wage scales were decidedly lower than urban wages. Rural areas where employees regularly didn't get benefits, as opposed to urban areas where a manufacturing infrastructure had made such benefits customary.
As Wal-Mart has tried to work it's way into urban areas, they've steadily improved the benefits and wages they offer. People in urban areas may be shocked because Wal-Mart didn't offer those kinds of benefits before. But people in urban areas are often shocked when they go to rural areas.
The weird thing is, all of the unskilled people who seek employment at Wal-Mart. Ever think about that? Why is it Wal-Marts fault that there is a huge number of unskilled people looking for employment at minimal rates with very little benefits? Its not.
I worked at Wal*Mart for many years. (I used to love going to work when we sold "American Made" products and they were family oriented.) I quit recently to obtain a better position in a retail environment. I could do any job in that store! I was actually paid extra money per hour due to the fact that I was so SKILLED and knowledgeable. You stated that only unskilled people apply at Wal*Mart. You also stated Wal*Mart hires only unskilled people. Are you aware that you have to go through a process of 3 interviews?? If the applicant cannot show skill and some intelligence they don't even pass the first interview. I'm not saying people use their skills to the best of their ability once hired, but for you to specify only unskilled people work at Wal*Mart is wrong! Wal*Mart actually taught me a tremendous amount of information which is helping to further my career!
I'm not saying I agree with what Wal*Mart does 100%, however they do provide numerous jobs throughout many communities.
BTW...I had decent benefits when I worked there, but heard they have been hiring only part time help so they don't have to offer benefits.
It's a little different when the local supermarket is the ONLY supermarket in town. Would you like me to take some pictures of the prices in the ONLY supermarket in my town?
Well, don't you reside in Wal-Mart's headquarter town? The fact that you are surrounded by Walmart's could easily explain why you "ONLY have one supermarket " in your town...left...
Well, don't you reside in Wal-Mart's headquarter town? The fact that you are surrounded by Walmart's could easily explain why you "ONLY have one supermarket " in your town...left...
No, I don't reside in Wal-Mart's "headquarter town"?
I live in a town that has ONLY one supermarket, because it was thrilled when a supermarket opened it's doors in the 1950's (before Wal-Mart ever existed), and that same supermarket continues to operate as the ONLY supermarket in town. That's what living in a small town is. ONE supermarket. ONE place to buy tires. Until the last couple of years, ONE bank. ONE doctor's office that's open three days a week. ONE pharmacy.
I think everyone who boycotts Walmart should also boycott Target.
I used to work at Target. I was paid $7.40 an hour. When I got my yearly raise, I got .17 cents. It was the highest raise out of the co workers I worked with.
There was a pregnant girl who worked there. She was full time. Slowly but surely, they reduced her hours. One day, she got called into the office and told she was now part time and not able to receive paid maternity leave and not covered.
Needless to say, she was angry. VERY angry.
A lot of my coworkers were on welfare as well.
When I worked at Wal-Mart I was also paid 7.40. Ain't that funny. I don't see why it was so low considering the cost of living where you live.
Well, don't you reside in Wal-Mart's headquarter town? The fact that you are surrounded by Walmart's could easily explain why you "ONLY have one supermarket " in your town...left...
no, she and I live in the same town and it isn't the town that Wal-mart is in. As D.C. mentioned we have one super market, well actually two and we are very happy. By the way, we do not even have a Wal-Mart. But the two stores we have, though small offer good quality products at generally good prices. If we choose we can vernture to Wal Mart of Sams. Both are relatively close to us.
Please check your sources before you post things that are not actuate..
Its amother union bashing wal-mart. So why are tax payers now funding the UAW's lavish healthcare?In fact why are they also funding their retirements when there is a mothod of handling bankrupt companies with obligations to ex-employeees.
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