With millions across the country demanding a $ 15 minimum wage, small business owners fear their businesses will be crippled, while minimum wage workers are hoping for better days.
Costco will increase its minimum wage to $ 16 an hour starting next week, CEO Craig Jelinek said Thursday at a Senate Budget Committee hearing.
“Since Costco’s inception, the company has committed to paying its employees highly competitive retail wages and providing them with comprehensive and affordable health services,” said Jelinek. “Two years ago, we moved our starting pay in the US to $ 15 everywhere in the US. Starting next week, the starting pay will go to $ 16.”
DEMS REVEALS $ 15 MINIMUM WAGE INVOICE, SAY THEY CAN USE RECONCILIATION TO CONTINUE LEGISLATION
“It’s important to us that Costco employees have the opportunity to earn more than just $ 15 or $ 16 an hour. Costco employees receive regular increases for the hours worked,” he said.
Shoppers will make their way through Costco in Idaho Falls, Idaho on opening day Friday, August 14, 2020. (John Roark / The Idaho Post-Register via AP)
The $ 16 hourly boost puts the starting pay above Target and Amazon’s. Target implemented a minimum wage of $ 15 an hour in July, while Amazon increased its minimum wage to $ 15 in 2018.
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Senator Bernie Sanders, I-Vt., Presided over the Senate Budget Committee hearing entitled “Should Taxpayers Subsidize Poverty Wages at Large Profitable Corporations?” He said he had invited Walmart CEO Doug McMillon to testify, but he declined.
| Ticker | Safety | Last | Change | Change% |
|---|---|---|---|---|
| COST | COSTCO WHOLESALE CORPORATION | 336.69 | -4.01 | -1.18% |
| AMZN | AMAZON.COM INC. | 3,101.60 | -57.93 | -1.83% |
| TGT | TARGET CORP. | 186.18 | -0.73 | -0.39% |
“Why should working people subsidize some of the richest families and largest businesses in America for the starvation wages they pay their workers?” Sanders said, praising Target and Costco for increasing their starting pay. “If Walmart thinks they won’t answer that question because they didn’t show up today, then they’re wrong.”
Walmart’s starting pay is $ 11 an hour.
“We believe the level of experience and loyalty of our employees is an important asset to our company,” said Jelinek. “Costco is what I know. I’m not an economist, regulator, or lawmaker, and I don’t pretend to know the methods or models that would suit other businesses, large or small, in other industries.”
Senate Budget Committee Ranking Member Senator Lindsey Graham, RS.C., compared the situation of the multi-billion dollar company Costco to that of small businesses.
“I’m not really worried about Costco … because you can absorb some increase in costs. I’m worried about the small business owner who is struggling because COVID has reduced their ability to provide for their livelihoods. Do you understand where I’m from? ” he asked Jelinek. “Can you understand why increasing the government’s mandate in terms of costs would be a devastating blow?”
“No, I cannot understand why it would be a devastating blow,” replied the CEO.
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“You can see why a South Carolina restaurant that has half the seats because of COVID can barely keep up, would it be terrible for them to increase their costs in terms of doubling the minimum wage?” Graham said.
“I don’t know if I proposed doubling the minimum wage,” Jelinek said. “I don’t think I’m here to discuss a proposal.”