Costco pisses off Wall Street . . . by paying decent wages . . .

[OneBlueSky]

Costco's Dilemma: Be Kind
To Its Workers, or Wall Street?

By ANN ZIMMERMAN
Staff Reporter of THE WALL STREET JOURNAL
March 26, 2004; Page B1

http://online.wsj.com/article_email/0,,SB108025917854365904-INjeoNplaV3oJ2pan2IbauIm4,00.html

When it comes to workers, companies can be accused of not paying enough -- or paying too much.

Wal-Mart Stores Inc.'s parsimonious approach to employee compensation has made the world's largest retailer a frequent target of labor unions and even Democratic presidential candidate John Kerry, who has accused the Bentonville, Ark., chain of failing to offer its employees affordable health-care coverage.

In contrast, rival Costco Wholesale Corp. often is held up as a retailer that does it right, paying well and offering generous benefits.

But Costco's kind-hearted philosophy toward its 100,000 cashiers, shelf-stockers and other workers is drawing criticism from Wall Street. Some analysts and investors contend that the Issaquah, Wash., warehouse-club operator actually is too good to employees, with Costco shareholders suffering as a result.

- more . . .

http://online.wsj.com/article_email/0,,SB108025917854365904-INjeoNplaV3oJ2pan2IbauIm4,00.html

and you might want to follow that up with . . .

Costco: The Only Company Wal-Mart Fears
Nobody Runs Warehouse Clubs Better Than Costco, Where Shoppers Can't Resist Luxury Products at Bargain Prices

November 24, 2003

http://www.teamster.org/04news/hn_040211_6.htm

[SoCalDem]

1. Um... are they being forced-at-gunpoint to invest in Costco?

If not.. STFU.. and buy more wallyworld stock..

I cancelled my Sam's Club membership and when they called me to offer me a "welcome back" bonus, I told them I would never have their card again.. Why, they asked?? I said : " I don't like the politics of your owners. They donate to republicans, and we cannot afford anymore republican in high places".. She said ..Thank you and hung up :)

[silverweb]

2. It was after first reading about this...

...that I went on line and ordered myself a Costco card. Now we shop there regularly for things we ordinarily use, save money, and flip off WalMart.

Wall Street's idea of "suffering" shareholders makes me laugh!

:bounce:

[Tom Kitten]

3. I really don't get this...

Without going into detail, shareholders, according to the WSJ , wish Costco would adopt more third world policies towards their employees in order to maximize their own profits? Is that the gist of their argument here?

[charlie]

4. No, worse

Financial analysts, and presumedly the crew at WSJ, are saying shareholders should be miffed about Costco's generous worker compensation. There are no direct cites of shareholders or shareholder groups voicing such concerns.

[izzie]

5. I think it is how the man who started it thinks.

From what I have read he is a little off the wall from the Street guys. Those guys would take your gold fillings and kick your grandmother off the farm and Cosco man is not that way. I really do not understand how things work any more, People used to go into stocks for the money they paid each year and now even that seems to be gone. Money seems to be made in the selling of over priced stocks and not the good the corp does anymore. It is hard to know what these corp produce anymore, they are like small countries and deal in every thing but production.

[namvet73]

6. That does it, I'm going to renew my Costco card

I have been neglecting to renew my Costco card. Just lazy, I guess.
Now that I hear that they are treating their employees "too well" I am going to renew. God knows, I want to be served by employees that are treated "too well." Maybe I will be treated "too well." I like that.

(I just dumped the shop that does my photo processing after finding out that he sends photo restorations overseas electronically and gets them done for $8/hour.) He probably wouldn't pass the savings on to me, besides, I restore my own photos. It's just the principle of it.

If you think I'm taking work away from the $8/hour person, it's his/her fault. They should demand a more reasonable fee.

[kodi]

7. this is the basis of the "jobless recovery," profits, not jobs matter

so we are faced with direct evidence that the definition used for economic health is profits, not jobs.

it is the investor class and its concomitant needs that matter more than providing workers living wages.

as if we did not know this already, it is surprising that it is so willing admitted by the investor class.

[Nobody]

8. News flash for investors

Wages are part of a company's operating costs.

Company profits in general are reinvested in the company.

Workers are part of the company and part of the reason it's successful.

All of this was learned in an economics class. Seems that Wall Street thinks that only execs should make enough to live on, get benefits, get raises, and that profits should be skimmed off to pay investors instead of being reinvested in company growth.

Way to go, Costco!

[Enraged_Ape]

9. I challenge anyone to walk into a Costco and a Wal-mart...

and tell me if they don't almost immediately detect a substantial difference.

WAL-MART:
1) Understocked, rifled shelves half full of cheap, shoddy crap.
2) Workers who look and act like they are half dead.
3) The characteristic "discount store" odor emitted from cheap dyes and plastics.
4) An unmistakeable, though difficult to define, aura of despair.

COSTCO:
1) A well-stocked store of really great, often unusual and hard-to-find merchandise at terrific prices.
2) Friendly workers who quite often hand out quite tasty, FREE food and sometimes even beer and wine!
3) Lots of room to maneuver, and lots of stuff to see. The only smell detectable may be from the hot dog/pizza stand in front. (And the food, like all the food throughout the store, is generally very good!)
4) No oppressive atmosphere. I spend a lot of time at Costco and usually enjoy every minute.

[silverweb]

10. I can't take your challenge.

I refuse to set foot in a WalMart.

Sorry... NOT!

:P

[Disturbed]

11. Walmart sucks...

and so does the attitude of these azzhole stock scum. We know that Bushco cater to these types and the wealthy that look down on the Middle Class. They want to turn the Middle Class into the Working Poor that have to shop at Walmart..

We need a REVOLUTION!!!!

[LizW]

13. I stay out of WalMart

I used to drop $100 bucks at a time in there buying useless crap I don't need. I can't tell you how much money I've saved in the last couple of years by staying out of that place.

People rush to WalMart in hoards thinking they are saving money, but the whole purpose of the existence of WM is to separate you from your hard-earned cash.

People claim it's cheap and convenient. It's neither cheap nor convenient if the lure of impulse buying caused you to spend twice what you would in another store.

In the last two years, I have determined that there is nothing in WM I can't get, and in better quality, at other stores in town.

[coda]

12. A scheme to pay a livable wage, built on the backs of poor stockholders?

There outta be a law. (Probably being written as we speak.) :-)

The real reason they hate this guy???.... his salary last year was like $350,000.

Yeah, they HATE him(CEO).

[NuttyFluffers]

14. wonder if shareholders ever thought...

that employees who get a livable wage can afford more luxury items and thus stimulate the economy and create growth in ALL their stocks?

geez, the shortsightedness of the disconnected world of wall street is outted again. thinking like this will drag us into another depression.

buy costco!

[President Jesus]

15. 'Wal-Mart' Waltons campaign contributions

I think this list pretty much sums up what you need to know about Wal-Mart.
http://www.newsmeat.com/fec/bystate_detail.php?city=BENTONVILLE&st=AR&contributor=Walton

[ikojo]

16. Didja notice that Joseph Lieberman was also a

recipient of Walton cash? As if we needed more proof of this DINO.

[JanMichael]

17. Costco has a reasonable CEO to Employee ratio, man that must piss off...

...money grubbing, avaricious, little, weasely assholes.

The Costco CEO makes (Not including his very substantial stock package) $182.29/hr based on a 40/h work week.

The starting hourly wage there is $10/hour for a 18.2:1 ratio...Not bad.

The article mentioned that an employee that's there for 3.5 years would likely make $40,000/year or around $20/hour which is about 10:1 ratio.

Damned near Commies to Wall Street.

[Q]

18. Welcome to...

...the Corporate State.

[Gin]

19. Lou Dobbs has economists on his show spewing the idea that outsourcing

is a good thing...he should get this info. It's all about the money.

I have a costco card and will renew because they are fair to their employees.

[keithyboy]

20. Placed a call to my broker and left a message. going to buy COSCO

as soon as the market opens on Monday!!! I will never shop at Wal-Mart again.

[keithyboy]

21. This is the kind of story Kerry should be using and addressing in his

economic strategy. Dems need to hit this kind of corporate behavior as "unAmerican" "unpatriotic". they need to get out there. The unions need to latch on to this as an example of the difference in corporate behaviors. There ought to be examples of good corporate behavior and bad corporate behaviors. Average people can understand this kind of thing. Kerry should be saying that he wants to reward companies that do waht COSTCO is doing. Even stockholders should not be that greedy. If you can make a decent profit and return on your investment, why do you need to make more at the expense of the livelihood of American workers?

[Jazzgirl]

22. I read about this very thing a couple of month ago.

I dumped Sam's two years ago and exclusively do my massive article shopping at Costco. The store is cleaner, the people are very friendly and helpful, and the atmosphere is better.

I am so sick of hearing from WS that corps need to reduce salaries and benefits to "maximize profits for the shareholders". Just this week a manager in our IT department said our company is going to be off-shoring some more IT work. He said he was reminded that the employees (managers) were supposed to be committed to "working for the shareholders by reducing costs wherever possible."

If I hear another buzzword I'm gonna implode! :grr: