The Wall Street Journal reports that Costco has announced its plan to use part of its savings from last year’s tax law changes to raise employee pay, saying “it would increase its starting hourly wages by $1 to $14 or $14.50 an hour. Other hourly workers will receive raises of between 25 cents and 50 cents. The new wages take effect on June 11.”
The move is seen as “intensifying the battle for workers in a tight U.S. job market … Unemployment in the U.S. has fallen to some of the lowest levels since the end of World War II, forcing Costco and other large employers to compete for talent in an industry with high turnover.”
The story says that as it announced the pay increases for some 130,000 employees, Costco also same-store sales that were up seven percent in the just-ended quarter, as well as profit that was up to $750 million, from $700 million a year ago, on total revenue of $32.36 billion.
The move is seen as “intensifying the battle for workers in a tight U.S. job market … Unemployment in the U.S. has fallen to some of the lowest levels since the end of World War II, forcing Costco and other large employers to compete for talent in an industry with high turnover.”
The story says that as it announced the pay increases for some 130,000 employees, Costco also same-store sales that were up seven percent in the just-ended quarter, as well as profit that was up to $750 million, from $700 million a year ago, on total revenue of $32.36 billion.
- KC's View:
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Costco has a long history of putting its employees first, understanding that it is only as strong as the people on the front lines.
Good for them.
