Costco could have a big worker problem
Costco (PRICE) – Get Report from Costco Wholesale Corporation has gained a reputation as a good place to work. It even pays its employees $15 an hour before Most locations.
Glass door is a website where employees can rate their work by salary, interview and benefits by providing photos and reviews. Costco has more than 13,000 ratings on the site, with 80% of the referral employees working at Costco. More than 2254 reviews even claim that they “love Costco because they offer you a living wage and great benefits even when working part-time.”
With this being said, there are still some downsides to employee experience ratings for large-scale grocery stores. In 792 reviews, employees mentioned the problem to management: “Poor management due to not listening and listening to employee problems and situations”.
In 451 reviews, employees noted that Costco was “very effective at screening employees selectively if managers don’t like that particular person.”
With this in mind, employees have expressed their needs and desires to Costco, and if they are not met soon, Costco will suffer greatly.
How Costco Has Handled Inflation
In a recent article, TheStreet reported grocery way inflationary will affect Costco positive: “As beverage prices continue to rise, companies with initiatives to sell cheaper items generate optimism as consumers flock in.”
TheStreet’s Daniel Kline also mention How Costco intends to increase membership prices because of high inflation, which is usually done every 5 years. But this year Costco decision not because of the economic environment, with Cosrtco CEO Craig Jelinek saying, “right now, it’s not on the table and I don’t think it’s the right time.”
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Instead, Costco increased the price of the grilled chicken by 33% (from $2.99 to $3.99) and the refillable 20-ounce soda ($0.59 to $0.69) , report Daniel Kline for TheStreet.
These are just some of the ways Costco makes changes in the face of inflation: changing prices and financial projections. Against this backdrop, the employees were engaged in a larger fight.
Changing needs of Costco employees
As of August 4, 2022, employees continue bargain with Costco because of the desire for a new country contract.
This war has been continuous. The worker was offered a contract in June, called “last, best and last” by the big corporation. But the offer was quickly rejected by more than 93% of employees. This week, negotiations continue, but so far there are clear results.
Even so, Teamsters, the largest labor union in the US, will push harder, according to Teamsters President Sean M. O’Brien: “Our members at Costco will defend their interests. their labor and retain their labor if necessary.”
O’Brien also noted that the 1.2-million-member team will act together if said need is not met.
Mike Bergen, 166 Local Secretary and Treasurer and Chairman of Teamsters Costco’s National Negotiation Committee, discussed several key issues with Costco: “Costco made record profits during the pandemic — more than $70 billion in 2021 alone — but they refuse to share their success with their profitable employees. They don’t seem to care about their workers anymore.”
Tom Erickson, VP of International and Head of Warehouse for Teamsters, notes that Costco “can afford to pay [its] members their fair share of those profits, “especially after it” has killed [its] members backing up during the pandemic. “