Costco back in the forefront of minimum wage debate

[demmiblue]

Source: Puget Sound Business Journal

Costco Wholesale Corp. President and CEO Craig Jelinek is putting his name and company in the forefront of the latest drive to increase the federal minimum wage.

Jelinek was prominently quoted in a press release issued Tuesday by the national advocacy group Business for a Fair Minimum Wage.

<snip>

In his statement, Jelinek said Costco’s starting pay is $11.50 an hour in the United States.

“Instead of minimizing wages, we know it’s a lot more profitable in the long term to minimize employee turnover and maximize employee productivity, commitment and loyalty,” Jelinek’s statement said.

Read more: http://www.bizjournals.com/seattle/news/2013/03/05/costco-back-in-the-forefront-of.html

[pangaia]

1. I wish there was a Costco near me.

[Riverman100]

7. Me too!

When will everyone else learn that people have to have the money to actually buy the stuff you sell?? You go Costco!

[valerief]

37. Me three!

[emmadoggy]

60. Me four! nt

[kelliekat44]

76. The President ought to at least give him praise for this. nt

[Walk away]

2. I just renewed my Costco's membership! It's a few extra miles...

but it's worth it for better product and to support the company.
I have a free Sam's Club card through one of my client's business but you can't beat Costco for quality and guilt free shopping!

[liberalmike27]

19. Walmart and Target

Or any grocer should be at the forefront on increasing the minimum wage.

These companies are so blind, restaurants, grocers, clothiers, and others that sell life's basics, that they don't see what Costco does. Who benefits most from wage increases for people who can barely afford anything? What do they buy, vacations in the Bahama's, yachts, or add to their car collections? Heck no!! They buy FOOD, clothes, pay the rent, maybe a microwave, or other items for the household. What to grocery stores sell?

They're so focused on what is going out in wages, they just can't see they'll be the main benefactors of the largesse of raising up these low earners a bit.

Classic blinding by greed and avarice, I suppose it is.

[antigop]

3. Costco contact info

From their website:

Costco's corporate mailing address is:
PO Box 34331
Seattle, WA 98124


Costco's corporate offices are located at:
999 Lake Drive
Issaquah, WA 98027

Costco.com Customer Service: 1-800-955-2292

General Member Service: 1-800-774-2678

[MindPilot]

4. If Costco has it, I buy it there

“Instead of minimizing wages, we know it’s a lot more profitable in the long term to minimize employee turnover and maximize employee productivity, commitment and loyalty,” Jelinek’s statement said.

Maybe we need a list of "CEOs Who Are Not Assholes"

[hamsterjill]

22. Me, too.

That's the way I shop, as well. Costco first and foremost.

[laundry_queen]

59. Well, he's also part of

the "CEOs Who Are Not Morons" list because what he's proposing is just basic good business. It's too bad most business schools don't teach that anymore. Mine does, but then I'm not in the U.S.

[greytdemocrat]

5. We love CostCo

We used to drive south to Ft.Myers or north to the Tampa area but now
there is one right here in Sarasota.

[ChiciB1]

48. Yes, There Is!! It's The One The Just Opened Five Minutes Away From Me!

Actually I think it was in August when it opened. Given how Sarasota is, I was really surprised. And I still can't believe it's so close! I live further south of Sarasota, so I'm probably closer than you are. Really close for me.

The place is the BEST I've found so far!

[skeewee08]

6. WTG Jelinek

I wish Oklahoma had a Costco's.....were stuck with Sam's

[djean111]

8. If it was not for Costco, my son would not be able to afford his meds for his (not war related) PTSD

The consequences of that, before we knew about the Costco pharmacy, made our family life hell (try living with someone who is always in fight-or-flight mode. Fight always won.)
There is a ten-fold difference between the non-insured prices of his meds at Costco and the same meds at CVS and Publix and other corporate places. And those places are adamant they they will not match Costco. (We are talking generics here, btw.)
I love Costco just for that, the minimum wage thing is just frosting on the cake.

[Nydari]

9. This is why I switched to Costco as soon as one opened within 20 miles of me.

We're in the process of switching our spending to support only local/socially responsible businesses. We're about 80% on food and related products.

If I could only give up my amazon habit for 'other' spending...

[A Little Weird]

10. Wow

I think the nearest Costco is about a 45 minute drive from me, but this makes me want to buy a membership even if I can't go very often.

[Bandit]

32. Because Costco sells in bulk we only go there once a month.

If you get one of their Executive Cards you get 5% cash back at the end of the year and many other benefits as well. The cash back more than covers the additional cost of the Executive Card...

[krawhitham]

70. you get 2% back and you would have to spend $5500 a year to pay for your membership

[Teamster Jeff]

11. K&R

Amen

[Mira]

12. When we had Bush v Gore

I went to Sams and got the manager and told him I was leaving because of their support for Bush, and that I would go across the street and become a member of Costco because they backed Gore.
Arriving there I got the manager and told them I was joining because of their support of Gore and why I left Sam's behind.

I'm still proud of that.

[ProfessionalLeftist]

13. Costco CxO was at the Dem Convention before the election

It's a company run by (a) Democrat(s) who aren't clueless, greedy assholes like those who run Home Despot and most other companies in the U.S. My niece used to work for Costco and she liked it - said they treated her well.

[Coyotl]

14. BOYCOTT Wal*Mart!

Would rather drive 100 miles to find it somewhere else if necessary.

[Skraxx]

15. Costco Rocks, Love That Place!

[a2liberal]

16. Proud to be a Costco member

I was really happy when they finally opened one here

[SpankMe]

17. Costco economics

When I shop at Costco, I save a ton of money. So, I shop there as much as I can. This makes Costco more profitable and enables them to pay their employees a respectable wage. The employees then provide me with service and value that keeps me coming back to Costco. The circle of life.

When we had babies, Costco saved us a TON of money on diapers, formula, baby clothes, baby furniture, etc.

[FailureToCommunicate]

18. No matter how crowded it is at COSTCO, the employees are always cheerful and helpful!

And you never know who you might meet there!

[freshwest]

20. Great pic. And COSTCO employees and customers are always upbeat. Love COSTCO.

[Wait Wut]

26. I think that's my favorite part.

No matter how busy they are, they have time to crack a joke, help you out or just chat while they're checking you out. I don't think the husband and I have ever left in a bad mood and I HATE shopping.

[freshwest]

28. Same here. The employees don't have that forced courtesy, they have a sense of quiet satisfaction.

The customers where I shop come from all over the world and are all grateful to be here. It just has that type of atmosphere, not like a consumer orgy, just wide open. It's a major hassle for me to get parked and sometimes it's crowded and hard to get through the aisles there are so many people. The only place I know with as many happy shoppers and employees is a supermarket with a lot of natural and organic thinsgs. Costs more to shop there but it's union and the employees are happy.

[bif]

53. Unlike the fake cheerfulness at Trader Joe's

I hate that "How's your day going?" crap they feel obligated to spew at TJ's. It's a great store though. Just hate the fake "I really care about you" attitude there.

[sheshe2]

82. I'd look upbeat too, if Joe Biden had his hand on MY shoulder!

Call out to COSTCO! You are great!

Hi to you freshwest.

[freshwest]

83. Hi right back at you. Nice to take a break from the...

[sheshe2]

84. UmmHmm

You make me work so hard freshwest, I had to find another Joe pic!

[url=http://postimage.org/][img][/img][/url]

psst, don't look now Joe, there are people following you...

[AllyCat]

27. I've never seen someone crabby at Costco. The guy in the electronics department

actually knew something about what he was selling which is more than we can say for the Target guy.

[Hekate]

50. I once saw Julia Child at our Costco, over in the fresh meat/fish section

She was quite ancient by then, but very recognizable.

I was leery of having a "big box" store open in our area since we've fought them off for so long, but after Costco got here in 1999 and I read up on their corporate practices, I was more than happy to become a customer. They are great.

[LittleGirl]

21. Proud member for over 3 yrs

And thankfully, I'm only 6 miles away from the nearest one.

I have boycotted Walmart for at least a decade so it was a no brainer for me to join Costco when I moved to a city that had them!

[geardaddy]

23. I love Costco!

[sabrina 1]

24. I love Costco!

[AllyCat]

25. Love Costco!

[wryter2000]

29. I adore Costco

I decided years ago to buy some stock in Costco just for the hell of it. When I googled "Buy Costco stock," it took me to the Costco website where it turned out that, if I bought $100 worth of stock in any company through Sharebuilder, Costco chipped in another $40. So cool.

I only have a couple of shares, but the value always goes up.

Costco is the only place to buy good cheese, and some of it is insanely inexpensive.

[AndyTiedye]

31. Agree on the Cheese

3-year old cheddar for less than the supermarkets charge for the regular stuff.

I have a little Costco stock too. It has done very well!

[xxqqqzme]

45. Good white cheddar - yes!

Excellent selection of cheeses.

I got a excellent folding wagon there a couple of years ago. I use it all the time for many different tasks, groceries, laundry, entertaining grandson, etc. Used it last weekend to transport numerous silent auction items from parking lot into venue w/ ease. Everyone wanted to know where I got it.

It was $60. I have seen the same wagon in catalogs. The lowest price I have seen anywhere is $125.

[wryter2000]

64. I got a wonderful drying rack

When the dryer went, I got myself a clothesline and love it. During CA wet winters, I needed something for drying clothing inside. The drying rack holds a whole load of wash. It was quite inexpensive and has probably paid for itself over the cost of running the dryer.

[AndyTiedye]

30. Costco Has a Clue

Better wages, better prices, better stuff. Costco wins!

We have 3 Costcos in our county and NO Walmart.

[darkangel218]

33. Time for me to join Costco :)

[wryter2000]

65. You'll love it

There's so much good stuff there. Fun shopping.

The only thing they do that irks me is they'll get something fabulous and when you go back the next time, they've discontinued it.

Like the honest-to-goodness Italian San Marzano canned tomatoes. Costco gaveth and then tooketh away.

[Duer 157099]

90. Oooo I got some of those, still haven't opened them

I hope I remember to use them before they get too old

[Cali_Democrat]

34. There are some good CEO's out there

[Webster Green]

35. My boss can't get it through his thick skull why I might go a little out of my way...

...to fill up my gas tank at Costco.

Every time I do it, he has to mention that I'm not going to really save that much money.

And every time he says that, I have to remind him that the gas price is only one reason that I like to fill up at Costco. I've explained to him that it's a great company and I like to support them.

I'm going to print this article and give it to him. I'm hoping it might cause him to STFU.

[MindPilot]

42. 5% cash back on gas purchases.

Costco gas is always about 10 cents less than the average price around town. Take another 5% off that for using the American Express card, and yeah you are saving some money on gas.

[2theleft]

36. This just did it for me...

I don't have any "bulk" warehouse membership, but I will be getting a costco membership this weekend.

[AnotherDreamWeaver]

39. No one has mentioned their American Express Card, with cash back feature

I had been a member for a while, but moved up to the AM EX catagory and get money back on gas even purchased at other facilities. Check it out...

[williesgirl]

38. I have to drive about 55 minutes one-way to get there, but it's worth it. Plus some stuff available

online. This just reaffirms my decision to join w/an Executive membership.

[progressoid]

40. Mr Jellineck?

Oh, wait. Wrong guy.

[Cha]

41. That's my Costco!

thanks demmiblue

[ybbor]

43. I am a proud member of Costco

And a huge anti-Walmart/ Sam's Club person. While Walmart pays their "associates" as little as possible. Costco at least pays their employees a somewhat better wage, and offers them benefits.

I believe I saw this quote here, "Henry Ford paid his employees well enough so that they could buy his product. Walmart pays its "associates" so they can't afford to shop anywhere else".

[xxqqqzme]

46. The irony is so thick

at the end of The Tavis Smiley Show Malwart brags it is spending 2 million (or 2 billion, I can never quite discern the beginning sound) to help stamp out hunger. I always think - use that money to pay your employees a living wage and alleviate the problem even more.

[obama2terms]

44. I love Costco

Even before I knew that they treat their employees well. That must be why everyone that works there always has a smile on their face. Good pay and good benefits, make a happy worker.

[ChiciB1]

47. We Finally Got A Costco Really Close To My Home....

AND I LOVE IT! My daughter & I walked in, signed up then said GOOD-BYE Walmart! Not that we were shopping at Walmart, but this place is great! Was there last Saturday & place was swamped. Going back tomorrow because I took a chance on buying a pair of size 6 (short) jeans, thinking I might need a 7, but nope the 6 is better than super! At $15.99 & as someone who buys clothes at garage sales & Good Will most of the time I was really, really happy.

They were selling Jimmy Buffet shoes at a discounted price too but no 1/2 sizes. I wear 6 1/2 so that didn't work. Anyway, I'm a happy, happy camper & LOVE shopping there. Don't mind buying in bulk because I can re-package & put foods in freezer. And the help is so very friendly & not hard to find.

[BrotherIvan]

49. Paying a better wage is just smart business

Now if Costco and consumers will also commit to buying products made in the USA we will be on the right track!

[noiretextatique]

51. i must renew my Costco membership

tomorrow!

[WillyT]

52. HUGE K & R !!!

[HockeyMom]

54. Does COSTCO require a BA for those $11.50/hour jobs?

My younger daughter has been applying to Private/Charter schools in NYC which require a BA and pay $12/hour. My older daughter, without a degree, was paid $16/hour at her last Loss Prevention job, no college degree. She has been trying for years to get into COSTCO. She found only 2 in the entire country; one in NJ, and a new store in Md. Pay up to $21.50/hour. No degree required, yet her sister is interviewing for these jobs paying only over $3/hour over than the new minumum wage in NYS. Become a CASHIER at COSTCO and you won't need a BA to make same amount of $$$$.

Some for profits get it. Others don't, and you will be a barely over minmum wage worker as a teacher in PRIVATE school. Pay off you college loans on THAT? Go to a trade school and learn to unclock toilet bowls, fix cars, do electrical work, and you will be better off.

[beveeheart]

55. I've been shopping at Costco

for quite a few years now. Some things I save a lot on are Greek yogurt, lettuce, cheese, peanut butter, fish and paperback books.

[airplaneman]

56. I love costco's pharmacy.

You can look up their prices online and they promise to only raise the price by the same low amount on all of their drugs. Me and my wife take the same identical BP medicine. For me it is $10.35 for 100 and my wife paid $74.39 for the exact same pill and quantity at WalMart. Be careful who is a good deal.
-Airplane

[juajen]

57. We do not have one Costco in Louisiana; but, we have two Sam's Clubs

just in Lafayette. Does Sam's Club have Louisiana all sewn up? I would so love one and/or a Trader Joe's.

[Rider3]

58. Renewing my membership!

I wasn't going to renew my membership, only because my husband and I won a membership last year, but we only went once. However, we noticed that the employees seemed very happy and were very helpful. Now, after reading this, I whole-heartedly support Mr. Jelinek's position. I'm renewing my membership, and even if I don't go to the store at all in the next year, I know that I'm supporting a good, decent business that supports and cares for their employees. SO worth it!

[spooky3]

61. Ours is so crowded that the lines are very long.

I let my membership lapse but maybe it's time to rethink that.

[IndyPragmatist123]

62. So, we should applaud a company for trying to eliminate competition?

I don't get it. Costco pays well above minimum wage and they only reason they support this is because it would really hurt their competition. There is no generosity here, this is pure capitalism. Costco just wants to hurt their competition. A minimum wage increase wouldn't cost them a penny but it would raise costs on their competitors.


Please stop acting like Costco is doing anything other than attacking their competition.

[ElboRuum]

63. Actually you raise an interesting point.

What, do you suppose, is it about the Costco business model that allows them to pay well above minimum wage while at the same time being competitive with, say, Walmart, which you claim would raise costs on their competitors? I would offer that if the Walmarts of the world can't afford to accept the burden of a minimum wage increase, and its competitor can, then the business model that Walmart is using is a bad one.

I don't see why I should have heartfelt concern for Costco's competitors, nor why I should not applaud Costco, for adopting a business model which is clearly superior, at least from the employee/customer standpoint, than its competition.

They get results without adopting the 'race to the bottom' attitude and it works well. If only all businesses would do this...

[IndyPragmatist123]

75. The membership fees help, but a lot of it is just different priorities

Costco workers love their jobs and do them well. It's well known that they are paid very well in addition to great benefits. There is incredibly low turnover at a Costco, so you eliminate a lot of training costs and lost time from inexperienced workers.

There are also all kinds of other deals that Costco makes with suppliers that allow them to get very low cost goods. They often will only sell one brand of a certain item; as long as they continue doing this, suppliers will be more willing to reduce prices to ensure they are the single brand sold.

I don't shop at any of these bulk stores like Costco or Sam's Club, but I've been told by two different people that they prefer Costco because it is cleaner and has better service. I imagine many of their customers feel the same way. They have incredible loyalty

It also helps that they put the well-being of their employees at the same level of importance as profits. The CEO sets a wonderful example of this. They make plenty of money for a lot of people, but they could easily make more.

It's a business model that is inefficient in a business sense. There is plenty of extra money that could be made, but they sacrifice that for the moral good. They saw a revenue of $88B in 2011, but only made a profit of $2.5B. That's not a great profit margin, but again, they sacrifice that for a moral good.

What they are doing now is trying to eliminate competition by supporting a minimum wage increase. Unless he comes out and says that he only supports this on a personal level and not as a representative of Costco, this is just trying to increase costs on other retailers that Costco does not have. It is incredibly immoral for businesses to try and use the government to protect their business from competition.

I love what Costco does as a business, but I do not like them trying to push policy (despite agreeing with that policy). This is not a law that applies to them, thus, the business should not be trying to interfere with the democratic process.

[llmart]

80. Shouldn't you be on some other board....

because we here at DU believe that there's more to being a good corporate citizen of the US than sacrificing moral principles for more profits.

It's not all about money all the time.

[IndyPragmatist123]

86. I never endorsed it. I just pointed it out.

That is the top priority of most companies. It's important to mention that Costco does not do that.

[ElboRuum]

95. Well...

Your last line in that post demonstrates concern about Costco involving themselves in the political process, having no skin in this game to paraphrase, but makes no mention of the lobbyists on the other side of the issue who clearly are in it to game the system their clients way, nor of you having any problem with that.

I don't know if a tacit lack of acknowledgement of the other side of the issue counts as endorsement, but castigating Costco for its political involvement (selfish though it may be) and not addressing the obvious political side being taken by its competitors (selfish it most certainly is) leaves a distinct odor of rotten fish.

[ElboRuum]

94. Interesting...

"I love what Costco does as a business, but I do not like them trying to push policy (despite agreeing with that policy). This is not a law that applies to them, thus, the business should not be trying to interfere with the democratic process."

See, actually it DOES apply to them. It applies to all businesses. They just go above and beyond. I wish I heard as much "concern" for this concept that "business should not be trying to interfere with the democratic process" when the lobbyists against any increase in the minimum wage are campaigning for the big box stores and all of the other 'race to the bottom' companies valuing profits over all other things.

That they choose to prioritize wage and customer service over profits like their competitors do and pay ABOVE the minimum wage is the most effective part of their business model. Hardly inefficient, their business model may be what leaves them standing when their competitors are paved over by having to pay a little more to their employees. Personally, I think this is an overblown concern, but whatever.

[wryter2000]

66. Where did it mention eliminating competition?

Those are your words and not in either the OP or the article it links to.

Disingenuous much? Anti-Costco agenda, maybe?

Any company wants to get as many customers as it can. Costco wants to do it while treating its employees well, and they're successful. You have a problem with that?

[Vanje]

68. HahhahahahahaaaAAA!

Costco is absolutely DIABOLICAL!

[EvolveOrConvolve]

73. Oh hi there!

Didn't know we had a Walton on board.

[Politicub]

67. Kick for Costco

Was there today to buy fresh roasted coffee beans and saw a bunch of other stuff I wanted. The buyers for Costco sure have my number - get outta my head Costco buyers!

[Sugarcoated]

69. We just rejoined Costco after several years going to Sam's

Sam's membership expires at the end of this month. Costco is a little further away, but I'm so happy to support this company who supports its workers!

[joeunderdog]

87. Sam's is Walmart. The evil empire of retail and worker exploitation.

Costco is the complete opposite. Vote your wallet.

[Sugarcoated]

93. I am

as I said in my post: )

[eilen]

71. We don't have a Costco in our area

just BJ's Wholesale, Sams and Cash&Carry (as far as warehouse/discount stores go). I read somewhere we might get one on the west side of the county but so far nothing.

I wish we had one though.

[Iwillnevergiveup]

72. For around $17

you can get the best pork chops I've ever tasted - maybe 3 meals for 2 people.

If possible, going on a Tuesday or Wednesday late morning is the best time - not so crowded. But I don't mind standing on line - it moves quickly and lots of stuff and people to look at.

[Omaha Steve]

74. Nice to see Ed's show covering this tonight

I do so enjoy MSNBC.

[Phlem]

77. Costco Rocks!

I had a printer that was 2 months out of warranty and they took it back. I feel fortunate to go to the Costco by they're home office. The crew is happy the place runs like a machine and they take very good care of their customers.

-p

[Bigredhunk]

78. Costco Has Blue State Values

http://www.seattleweekly.com/2004-12-15/news/company-for-the-people/

[garthranzz]

79. New Orleans is getting Costco soon

It's about time!

[SunSeeker]

81. The best Costco ever is in Maui.

And it's right by the airport. As soon as we get the rental car we make a beeline to Costco to stock up the condo we rent. We're good for the rest of our stay. Love it.

[joeunderdog]

88. I agree. Great wines too.

And the pineapples....!!!!

[Safetykitten]

85. Well, now we know the demographic favorite of the people here, but..

Do you work there? Have you worked there? Do you have any idea what is like?

I think everyone should work retail at a big box for a year, and live on the pay...then get back to us.

[VPStoltz]

89. While we admire Costco's many pluses (this being one)...

we dropped out membership after it put 10s of millions of $ into making booze a publicly sold commodity here in WA State.
Had it been from the start, that would have made sense, but to put thousands out of a job while promising lower prices (which never happened) really soured us to their image.

[Prism]

91. They're so ridiculously cheerful there

I made the usual milk/eggs/tp run this morning right when it opened. Grabbed a cart with a slightly wobbly/squeaky wheel. The card-check guy at the entrance took one look at it and declared This Cart Cannot Stand. "Man, you don't want to shop with the loudest cart in the store!" He immediately leapt (yes, leapt) over to the cart corral and nabbed me the best one he could find.

I just kind of stared at him.

People shouldn't be that happy first thing in the morning. It's suspicious.

[RedstDem]

92. Love Costco

been a member since price club days..
hope to see VPOTUS next time i go.......