Costco to Raise Entry-Level Wages
Executive vice president and chief financial officer Richard Galanti, speaking on Costco’s second-quarter earnings call, noted that the retailer’s entry-level hourly wages in the U.S. and Canada have been $11.50 and $12, respectively, since 2007. Wages will rise $1.50 in both countries, reaching $13 and $13.50, respectively.
RL’s take: Costco is known for paying average employees higher-than-average wages, and its CEO has endorsed raising the federal minimum wage. Therefore, it’s even more admirable that the company sticks to its guns in tough times. However, one would be remiss to not also think this was a necessary move to stay competitive against rival Sam’s Club, as its parent company, Walmart, also recently committed to raising wages.