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As millions of people across the country demand a minimum wage of $ 15, small business owners fear their businesses may be crippled as minimum wage workers have hopes of better days ahead.
Costco will raise its minimum wage to $ 16 an hour starting next week, CEO Craig Jelinek said at a Senate Budget Committee hearing Thursday.
“Since the inception of Costco, the company has been committed to paying employees highly competitive retail salaries and providing them with extensive and affordable benefits,” said Jelinek. “Two years ago, we moved our starting hourly wage to $ 15 across the United States. Starting next week, the starting salary will increase to $ 16.
DEMS UNVEILS $ 15 MINIMUM SALARY INVOICE, SAY THEY CAN USE RECONCILIATION TO PASS LEGISLATION
“It’s important to us that Costco employees have the opportunity to earn more than $ 15 or $ 16 an hour. Costco employees receive regular increases for hours worked, ”he said.
Shoppers make their way through Costco in Idaho Falls, Idaho on its opening day on Friday August 14, 2020 (John Roark / The Idaho Post-Register via AP)
The $ 16 an hour hike puts his starting salary above Target and Amazon. Target implemented a minimum wage of $ 15 an hour in July, while Amazon increased its minimum wage to $ 15 in 2018.
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Senator Bernie Sanders, I-Vt., Chaired the Senate Budget Committee hearing, titled “Should Taxpayers Subsidize Poverty Wages in Large Profitable Corporations?” He said he invited Walmart CEO Doug McMillon to testify, but he declined.
| Teleprinter | security | Latest | Change | Change% |
|---|---|---|---|---|
| COST | COSTCO WHOLESALE COMPANY | 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 richest families and largest corporations because of the starvation wages they pay their workers?” Sanders said, adding praise to Target and Costco for increasing their starting salaries. “If Walmart thinks they’re going to avoid answering this question because they haven’t shown up today, they are deeply wrong.”
Walmart’s starting wage is $ 11 an hour.
“We believe that the level of experience and loyalty of our employees is a significant advantage for our business,” said Jelinek. “Costco is what I know. I am not an economist, regulator, or legislator, and I do not claim to know the methods or models that are suitable for other large or small companies in other industries.
Sen. Lindsey Graham, RS.C., a ranking member of the Senate Budget Committee, compared the situation of the multi-billion dollar Costco company to that of small businesses.
“I don’t really care about Costco… because you can absorb some increase in costs. I worry for the struggling small business owner because COVID has reduced his ability to make a living. Do you understand where I am coming from? “He asked Jelinek.” Can you understand why an increase in the government’s mandate in terms of cost would be a devastating blow? “
“No, I can’t understand why that would be such a devastating blow,” replied the CEO.
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“You can understand why a restaurant in South Carolina that has half the seating capacity because of COVID, barely hanging on, would it be devastating for them to increase their costs by doubling the minimum wage?” Graham said.
“I don’t know if I was suggesting doubling the minimum wage,” Jelinek said. “My opinion is that I am not here to discuss a proposal.”
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