Ridiculous and counterproductive.
Downsizing, lower pay, reduced benefits — that seems to be the same story at one company after another, as if the sole point of business were to pull in one massive quarterly profit.
But then there’s our number of the day: $19.50.
That’s what a worker at Costco makes after four and a half years, according to Slate Magazine. It’s about $7 an hour more than employees with the same seniority at Costco’s competitor, Sam’s Club.
Some Wall Street analysts haven’t been happy about that or about the company’s generous health plan. No doubt, Costco could be making a higher profit. And yet, the company does just fine. The value of Costco stock has more than doubled since 2009, and the company’s founder, James Sinegal, said those wages buy the company a low rate of employee turnover and theft.
Costco’s generosity saw renewed publicity recently when Wal-Mart became mired in strikes over low pay and bad labor relations. Although Wal-Mart is admittedly a much bigger company, the Costco model proves you don’t have to squeeze employees.
Wal-Mart’s way is not the only way to do business.
Watch ‘Viewpoint with Eliot Spitzer’ weeknights at 8E/5P on Current.