Millions of people in the country are asking for a minimum wage of $ 15, and small business owners are afraid that their businesses will be paralyzed, while minimum wage workers are hoping for better days ahead.
Costco will increase its minimum wage to $ 16 an hour from next week, CEO Craig Jelinek said Thursday during a Senate Budget Committee hearing.
“Since Costco was founded, the company has been committed to paying its employees many competitive retail wages and offering them broad and affordable health benefits,” Jelinek said. “Two years ago, we moved our hourly starting salary all over the US to $ 15. From next week, the starting salary will be $ 16.”
DEMS RELEASES $ 15 MINIMUM REMUNERATION BILL, SO THEY CAN USE RECONCILIATION TO PASS LEGISLATION
“It is important to us that Costco employees have opportunities to earn more than just $ 15 or $ 16 per hour. Costco employees regularly receive increases for hours worked,” he said.
Buyers drive through Costco in Idaho Falls, Idaho during the opening day on Friday, August 14, 2020. (John Roark / The Idaho Post-Register via AP)
The $ 16-per-hour boost puts its starting salaries above Target’s and Amazon’s. Target implemented a minimum wage of $ 15 per hour in July, while Amazon raised its minimum wage to $ 15 in 2018.
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Sen. Bernie Sanders, IV., Chaired the Senate Budget Committee hearing, entitled “Should taxpayers subsidize poverty in large for-profit businesses?” He said he invited Walmart CEO Doug McMillon to testify, but he refused.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| COST | COSTCO WHOLESALE CORPORATION | 336.69 | -4.01 | -1.18% |
| AMZN | AMAZON.COM INC. | 3 101.60 | -57.93 | -1.83% |
| TGT | TEIKEN CORP. | 186.18 | -0.73 | -0.39% |
“Why would working people subsidize the richest families and largest businesses in America because of the starvation wages they pay their workers?” Sanders said Target and Costco added praise for raising their starting salaries. “If Walmart thinks they are not going to answer the question because they did not show up today, they are doing them wrong.”
Walmart’s starting salary is $ 11 per hour.
“We feel that the level of experience and loyalty of our employees is an important advantage for our company,” Jelinek said. “Costco is what I know. I’m not an economist, a regulator or a legislator, and I do not pretend to know the methods or models that are suitable for any other large or small enterprises in other industries. “
Senate Lindsey Graham, RS.C., a member of the Senate Budget Committee, compared the multimillion-dollar Costco situation to that of small businesses.
“My concern is not really about Costco … because you may be experiencing an increase in costs. I’m concerned about the small business owner struggling because COVID has reduced their ability to make money. Do you understand where? “I’m coming from here,” he asked Jelinek. “Can you understand why a cost-raising mandate from the government would be a devastating blow?”
“No, I can not understand why it would be a devastating blow,” the CEO replied.
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“Can you understand why a restaurant in South Carolina that has half a seat due to COVID, which is barely adhering, would be devastating for them to increase their costs in terms of doubling the minimum wage?” Graham said.
“I do not know that I have proposed that the minimum wage be doubled,” Jelinek said. “My opinion is that I am not here to discuss a proposal.”