With millions across the country asking for a $ 15 minimum wage, small business owners fear that their business will be harmed while workers on the minimum wage hope for better days ahead.
Costco will raise its minimum wage to $ 16 an hour starting next week, CEO Craig Jelinek said during a Senate Budget Committee hearing on Thursday.
“Since the beginning of Costco, the company has been committed to paying employees very competitive retail wages and providing them with comprehensive and affordable health benefits,” said Jelinek. “Two years ago, we changed our starting hourly wage to $ 15 across the United States. Starting next week, the starting wage will go to $ 16.”
DEMS REVEALS $ 15 MINIMUM WAGE ACCOUNT, SAYS THAT THEY CAN USE RECONCILIATION TO PASS LEGISLATION
“It is important for us that Costco employees have opportunities to earn more than just $ 15 or $ 16 an hour. Costco employees receive regular increases in hours worked, ”he said.
Buyers pass Costco in Idaho Falls, Idaho, during its opening day on Friday, August 14, 2020. (John Roark / The Idaho Post-Register via AP)
The $ 16 hourly increase puts her starting salary above Target and Amazon. Target implemented a minimum wage of $ 15 an hour in July, while Amazon raised its minimum wage to $ 15 in 2018.
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Senator Bernie Sanders, I-Vt., Chaired the Senate Budget Committee hearing, entitled “Should taxpayers subsidize poverty wages in large, profitable companies?” He said he 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 workers subsidize some of America’s wealthiest families and largest corporations because of the starvation wages they pay their workers?” Sanders said, praising Target and Costco for raising their starting salaries. “If Walmart thinks it will avoid answering that question because it did not appear today, they are deeply mistaken.”
Walmart’s starting salary is $ 11 an hour.
“We feel that the level of experience and loyalty of our employees is a significant advantage for our company,” said Jelinek. “Costco is what I know. I am not an economist, regulator or legislator, and I do not intend to know the appropriate methods or models for any other large or small company in any other sector.”
Senate Budget Committee member Senator Lindsey Graham, RS.C., compared the situation of the multi-billion dollar company Costco with that of small businesses.
“My concern isn’t really with Costco … because you can absorb some increase in cost. I’m concerned about the small business owner who is struggling because COVID has reduced his ability to earn a living. Do you understand where I’m coming from?” he asked Jelinek. “Can you understand why a government increase mandate in terms of cost would be a devastating blow?”
“No, I can’t understand why it would be a devastating blow,” replied the CEO.
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“Can you understand why a restaurant in South Carolina that has half the capacity to sit because of COVID, barely holding on, would be devastating for them to increase their costs in terms of doubling the minimum wage?” Graham said.
“I don’t know if I was suggesting doubling the minimum wage,” said Jelinek. “My opinion is that I am not here to discuss a proposal.”