http://www.azcentral.com/business/articles/0721costco-ON.htmloriginal :
Steven Greenhouse
New York Times
Jul. 21, 2005 08:23 AM
I recommend everyone read this article, it shows that we consumers have two choices for about the same costs:
1. Wal-Mart : anti-union low wages and benifits to it's employees
2. Costco : union friendly, resonable wages and benifits
This is a pro- Costco article, very good , every union worker should speak with his/her wallet, the only language these guys understand. The article shows there is hope in America for union workers, if we speak with our wallets.
on edit:
"But not everyone is happy with Costco's business strategy. Some Wall Street analysts assert that Sinegal is overly generous not only to Costco's customers but to its workers as well. "
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"Sinegal begs to differ. He rejects Wall Street's assumption that to succeed in discount retailing, companies must pay poorly and skimp on benefits, or must ratchet up prices to meet Wall Street's profit demands.
Good wages and benefits are why Costco has extremely low rates of turnover and theft by employees, he said. And Costco's customers, who are more affluent than other warehouse store shoppers, stay loyal because they like the fact that that low prices do not come at the workers' expense. "This is not altruistic," he said. "This is good business."
He also dismisses calls to increase Costco's product markups. Sinegal, who has been in the retailing business for more than a half-century, said that heeding Wall Street's advice to raise some prices would bring Costco's downfall."
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"They could probably get more money for a lot of items they sell," said Ed Weller, a retailing analyst at ThinkEquity.
But Sinegal warned that if Costco increased markups to 16 percent or 18 percent, the company might slip down a dangerous slope and lose discipline in minimizing costs and prices.
Sinegal, whose father was a coal miner and steelworker, gave a simple explanation. "On Wall Street, they're in the business of making money between now and next Thursday," he said. "I don't say that with any bitterness, but we can't take that view. We want to build a company that will still be here 50 and 60 years from now."