In a win for key staff, Costco will increase its minimal wage to $ 16 an hour
W. Craig Jelinek, CEO of Costco, told the Senate Budgets Committee during a hearing Thursday that more than half of the hourly workers employed at Costco’s U.S. sites actually earn more than $ 25 an hour. For perspective, Costco increased its minimum wage to $ 15 in 2019.
“At Costco, we know that it makes sense for our company to pay employees good wages and that this is a significant competitive advantage for us,” said Jelinek, as reported by NPR. “It helps us in the long term by minimizing sales and maximizing employees.” Productivity. “That makes perfect sense.
The CEO stated that Costco’s turnover rate in retail is less than 10% and that when you look at employees who have been with the company for over a year, the turnover rate drops to 6%. “We are not moving many employees, which we think is very beneficial,” he added, as reported by Yahoo. Again: makes sense. Unless employees are struggling to survive, they may be less likely to keep looking for better-paying opportunities. They are also less likely to have other jobs or gig work that interferes with their ability or interest in keeping a job for an extended period of time.
Even outside of the COVID-19 pandemic, we know there is a racial gap when it comes to who works for poverty-level wages. For example, workers of color are much more likely to receive poverty-level wages than white workers. We also know that women of color in particular are more likely to be placed in low-wage work due to structural oppression. Young workers – defined as between 16 and 24 years old – are more likely to earn the minimum wage than older workers, as are workers without a university degree.
During the election campaign, today’s President Joe Biden pledged to raise the federal minimum wage to $ 15 an hour by 2025.