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Costco to pay at least $16 per hour, as CEO advocates for a higher minimum wage

3 points by sharkweek 6y ago

Bostonian 6y ago
The Costco CEO is using the political process to hamstring competitors. A $16 minimum wage may be right for his business but not for theirs.
- Finnucane 6y ago
  >The Costco CEO is using the political process to hamstring competitors. How so? They're paying more than the proposed new minimum wage, so the political process is moot for them. The other companies were invited to come and give their opinions; they chose to decline. If the optics of it aren't good for Walmart, et al., that's not Costco's fault.
  - Mountain_Skies 6y ago
    Costco has an upfront cost to shop there. The annual membership fee might be nothing to you and me but for people struggling paycheck to paycheck, being required to pay an entrance fee just to shop is a problem. You cannot compare Costco's business model to that of the Piggly Wiggly that's serving the low income community Costco doesn't cater to. Costco wants to increase Piggly Wiggly's expenses to be those of Costco. What happens when Piggly Wiggly, not having the benefit of annual membership fees from members, closes down stores, leaving those with little padding in their monthly budgets with the requirement to pay Costco a fee just to get groceries? Costco's business model revolves around those annual membership fees so the more people forced to pay it, the better for Costco.
    - JoeyBananas 6y ago
      If that happened, Costco's workers would still be getting paid more. So, I see no reason to blame Costco for using such tactics to compete. Whether this indirect effect that you propose will impact low income families in the way that you suggest is far from certain.
    - Finnucane 6y ago
      Sure, but none of that amounts to political manipulation. Nor does it particularly negate the fact that companies like Walmart are enormously profitable while paying a pittance to their workers.
    - toomuchtodo 6y ago
      Low income areas can rely on benefits programs to fill the affordability gap (EBT) until, hopefully, those receiving benefits can grow into higher paying wages. In the event that they don’t, they still get groceries and Piggly Wiggly workers still receive a living wage.

3 points by sharkweek 6y ago

The Costco CEO is using the political process to hamstring competitors. A $16 minimum wage may be right for his business but not for theirs.

Finnucane 6y ago
>The Costco CEO is using the political process to hamstring competitors. How so? They're paying more than the proposed new minimum wage, so the political process is moot for them. The other companies were invited to come and give their opinions; they chose to decline. If the optics of it aren't good for Walmart, et al., that's not Costco's fault.
- Mountain_Skies 6y ago
  Costco has an upfront cost to shop there. The annual membership fee might be nothing to you and me but for people struggling paycheck to paycheck, being required to pay an entrance fee just to shop is a problem. You cannot compare Costco's business model to that of the Piggly Wiggly that's serving the low income community Costco doesn't cater to. Costco wants to increase Piggly Wiggly's expenses to be those of Costco. What happens when Piggly Wiggly, not having the benefit of annual membership fees from members, closes down stores, leaving those with little padding in their monthly budgets with the requirement to pay Costco a fee just to get groceries? Costco's business model revolves around those annual membership fees so the more people forced to pay it, the better for Costco.
  - JoeyBananas 6y ago
    If that happened, Costco's workers would still be getting paid more. So, I see no reason to blame Costco for using such tactics to compete. Whether this indirect effect that you propose will impact low income families in the way that you suggest is far from certain.
  - Finnucane 6y ago
    Sure, but none of that amounts to political manipulation. Nor does it particularly negate the fact that companies like Walmart are enormously profitable while paying a pittance to their workers.
  - toomuchtodo 6y ago
    Low income areas can rely on benefits programs to fill the affordability gap (EBT) until, hopefully, those receiving benefits can grow into higher paying wages. In the event that they don’t, they still get groceries and Piggly Wiggly workers still receive a living wage.