The Democrats' push, most prominently by Sen. Bernie Sanders (I-Vt.), to raise the federal minimum wage to $15 an hour hit a significant snag on Thursday. But Costco, the No. 2 U.S. bricks-and-mortar retailer, raised the ante anyway, announcing Thursday — at a Senate hearing chaired by Sanders — that it is raising its own minimum wage to $16 an hour, starting next week. Costco set its lowest hourly wage at $15 in 2019, a year after raising it to $14. The federal minimum wage has been $7.25 an hour since 2009.
"I want to note: this isn't altruism," Costco CEO Craig Jelinek said at the Senate Budget Committee hearing. "At Costco, we know that paying employees good wages and providing affordable benefits makes sense for our business and constitutes a significant competitive advantage for us." About 90 percent of Costco's 180,000 U.S. workers are hourly employees, and 20 percent of them earn its minimum wage. The average hourly wage is $24, and Jelinek said the company has been paying a $2 hourly hazard bonus since March. That will end next month but be converted to wage increases company-wide, he added.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
'Solitude has become a notable, and worrisome, trend of our times'Instant Opinion Opinion, comment and editorials of the day
-
Blake Lively accuses rom-com costar of smear jobSpeed Read The actor accused Justin Baldoni, her director and costar on "It Ends With Us," of sexual harassment and a revenge campaign
-
Germany arrests anti-Islam Saudi in SUV attackSpeed Read The attack on a Christmas market in Magdeburg left five people dead and more than 200 wounded
-
Judges block $25B Kroger-Albertsons mergerSpeed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
-
Rupert Murdoch loses 'Succession' court battleSpeed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
-
Bitcoin surges above $100k in post-election rallySpeed Read Investors are betting that the incoming Trump administration will embrace crypto
-
Enron mystery: 'sick joke' or serious revival?Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
-
US charges Indian tycoon with bribery, fraudSpeed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
-
Boeing machinists approve contract, end strikeSpeed Read The company's largest union approved the new contract offer, ending a seven-week strike
-
US economy still strong in final preelection reportSpeed Read It grew at a solid 2.8% annual rate from July through September
-
Boeing machinists reject deal, continue strikeSpeed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
