Costco CEO: Raise the minimum wage

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Washington DC – Business owners applauded the introduction today of legislation to raise the federal minimum wage for the first time since 2009. U.S. Sen. Tom Harkin (IA) and Rep. George Miller (CA) introduced the Fair Minimum Wage Act of 2013, which would gradually raise the federal minimum wage from its current $7.25 an hour to $10.10, then provide for annual increases linked to the rising cost of living. The Fair Minimum Wage Act would also gradually raise the minimum wage for tipped workers for the first time in more than 20 years from an abysmal $2.13 an hour at present to 70 percent of the regular minimum wage.

“At Costco, we know that paying employees good wages makes good sense for business,” said Craig Jelinek, Costco’s President and CEO. “We pay a starting hourly wage of $11.50 in all states where we do business, and we are still able to keep our overhead costs low. An important reason for the success of Costco’s business model is the attraction and retention of great employees. Instead of minimizing wages, we know it’s a lot more profitable in the long term to minimize employee turnover and maximize employee productivity, commitment and loyalty. We support efforts to increase the federal minimum wage.”

http://www.businessforafairminimumwage.org/news/00272/costco-eileen-fisher-and-small-business-owners-nationwide-support-fair-minimum-wage-act-i

[Karee 4,191]

[quote name=' timestamp='1362595509' post='6026297]

Washington DC – Business owners applauded the introduction today of legislation to raise the federal minimum wage for the first time since 2009. U.S. Sen. Tom Harkin (IA) and Rep. George Miller (CA) introduced the Fair Minimum Wage Act of 2013, which would gradually raise the federal minimum wage from its current $7.25 an hour to $10.10, then provide for annual increases linked to the rising cost of living. The Fair Minimum Wage Act would also gradually raise the minimum wage for tipped workers for the first time in more than 20 years from an abysmal $2.13 an hour at present to 70 percent of the regular minimum wage.

"At Costco, we know that paying employees good wages makes good sense for business," said Craig Jelinek, Costco's President and CEO. "We pay a starting hourly wage of $11.50 in all states where we do business, and we are still able to keep our overhead costs low. An important reason for the success of Costco's business model is the attraction and retention of great employees. Instead of minimizing wages, we know it's a lot more profitable in the long term to minimize employee turnover and maximize employee productivity, commitment and loyalty. We support efforts to increase the federal minimum wage."

http://www.businessf...imum-wage-act-i

Commies!

[OnMyWayID 1,489]

It will make no difference, maybe cause some inflation as it trickles up all wages.. Average person make 1000 more a year and costs increase an average of 1000 a year.. Hurts retired people on fixed incomes but then they are going to die anyway.

How long until we have a maximum wage? I want to see some CEOs cry when they set the max to 500K.

[Caryh 5,206]

It will make no difference, maybe cause some inflation as it trickles up all wages.. Average person make 1000 more a year and costs increase an average of 1000 a year.. Hurts retired people on fixed incomes but then they are going to die anyway.

How long until we have a maximum wage? I want to see some CEOs cry when they set the max to 500K.

Damn commie. Why shouldn't a CEO earn in one minute what his average employee makes in 4 months? I mean if he wasn't out going to parties, golfing and counting his stock options, they wouldn't have jobs at all.

[SMR 368]

If the CEO of Costco is confident that paying his employees more is good for business, he should continue doing it. Why does he feel that he needs someone to force him to do what he would do anyways? That doesn't make sense.

[^_^ 5,021]

If the CEO of Costco is confident that paying his employees more is good for business, he should continue doing it. Why does he feel that he needs someone to force him to do what he would do anyways? That doesn't make sense.

He is expressing an opinion as to what policy should be. He is advocating for a position just like gun owners advocate for a position and abortion opponents advocate for a position. That does not force you to do anything.

[Brother Hesekiel 2,236]

Raising the minimum wage is overdue. If you make $9 per hour and work 40 hours a week, you have $360 per week or $1,440 per month before taxes. Now pay rent for your sh*thole apartment in the slums, your worn out Escort, your 99-cent store food, your health insurance, and your child, and you are still f*cked to the Yin Yang. The current minimum wage does not provide the means to make a living even with full time work. Not even a crappy one. So We The People subsidize those greedy corporations by giving their employees food stamps and other relief. Yep, that's right, WalMart sells Chinese #######, pays minimum wage, and we the taxpayers pay the difference. I sure don't like that.

Regarding CEO pay, I personally would tie the income of the CEO to that of the employees. For example, the CEO cannot take home more than 100 times what the lowest paid employee takes home per year. That'll do it . . .

[Caryh 5,206]

Raising the minimum wage is overdue. If you make $9 per hour and work 40 hours a week, you have $360 per week or $1,440 per month before taxes. Now pay rent for your sh*thole apartment in the slums, your worn out Escort, your 99-cent store food, your health insurance, and your child, and you are still f*cked to the Yin Yang. The current minimum wage does not provide the means to make a living even with full time work. Not even a crappy one. So We The People subsidize those greedy corporations by giving their employees food stamps and other relief. Yep, that's right, WalMart sells Chinese #######, pays minimum wage, and we the taxpayers pay the difference. I sure don't like that.

Regarding CEO pay, I personally would tie the income of the CEO to that of the employees. For example, the CEO cannot take home more than 100 times what the lowest paid employee takes home per year. That'll do it . . .

my opinion also. But you'll hear but what about those part time high school kids, they'll loose their jobs.

As to tying CEO pay to the lowest employee they'll get around that with stock options. Already a major source of compensation for many CEO.

[canada_socks 97]

my opinion also. But you'll hear but what about those part time high school kids, they'll loose their jobs.

As to tying CEO pay to the lowest employee they'll get around that with stock options. Already a major source of compensation for many CEO.

Even full time regular employees will have hours cut. I did labour control and scheduling at my old job in Canada, and trust me, when minimum wage went up over $10 per hour, hours were cut back for everyone. People wound up making less money.

[Póg mo 1,749]

Even full time regular employees will have hours cut. I did labour control and scheduling at my old job in Canada, and trust me, when minimum wage went up over $10 per hour, hours were cut back for everyone. People wound up making less money.

Rubbish, companies can only cut hours, benefits and employees so much with out undermining their ability to provide a service that people actually want to pay for!

[canada_socks 97]

Rubbish, companies can only cut hours, benefits and employees so much with out undermining their ability to provide a service that people actually want to pay for!

I am just stating my experience. We did run with less employees and we worked a lot harder.

[Póg mo 1,749]

I am just stating my experience. We did run with less employees and we worked a lot harder.

I am not disputing this, all I am saying is there is a limit to how few any given employer can cut back in hours without seriously disrupting a businesses ability to function.

[Gary and Alla 3,694]

He should lead by example. There is no law preventing him from paying more.

I always love these clowns..."I am rich, I should pay more in Tax" OK, wirte a check, make it to US Treasury and sleep well.

"I am the CEO of a huge corporation and I think the minimum wage should be higher" OK, give everyone in Costco a raise.

[Póg mo 1,749]

He should lead by example. There is no law preventing him from paying more.

I always love these clowns..."I am rich, I should pay more in Tax" OK, wirte a check, make it to US Treasury and sleep well.

"I am the CEO of a huge corporation and I think the minimum wage should be higher" OK, give everyone in Costco a raise.

You do know that Costco already leads by example, right?

Edited March 9, 2013 by InKorea

[Gary and Alla 3,694]

You do know that Costco already leads by example, right?

It's why I shop there.

Edited March 9, 2013 by Gary and Alla