Walmart is a company that’s known for lower standards and lower wages. Granted, Walmart did lift its pay floor to $10 an hour this year for more than 1 million workers, that still isn’t anywhere near enough to survive.
Walmart’s recent pay increase is part of the same market forces that are pressuring retailers across the board to give pay raises, and as such, they aren’t alone – but they’re still scraping the bottom of the barrel. Joining them is their competitor Costco, the second-largest U.S. retailer, which announced that they too would be increasing their wages – and flipping Walmart and Walmart’s garbage wages the bird in the process.
“It is important to do”
Costco announced that it will start paying at least $13-to-$13.50 an hour, up from their previous $11.50-to-$12 an hour, during a Thursday conference call with analysts. The increase will cut its earnings per share in the next three months by $0.01, and by $0.02 in the following three quarters. It’s the first time in almost a decade the company has raised wages.
Richard Galanti, the CFO for Costco, said it was “important to do” during the call:
It will help, and it is important to do. his is a physically challenging job. You’re on your feet, lifting cases, moving carts, and we thought it was time to do it
The highest hourly pay is about $22.50, and those workers are looking at a 2.5% raise this year.
It takes a full-time employee roughly four years to reach the top of the scale.
While $13.50 isn’t a living wage by any measure for most – that number hovers between $15.00/hour and $50.00/hour depending on living conditions and location – it’s still an improvement over Walmart, which only increased their wages by $1.00 to $10.00 an hour and runs food drives because it’s too stingy to pay its employees decently.
Watch the Bloomberg Business report below:
Featured image via Screen Capture
Featured image via video screen capture