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Costco raises minimum wage above its competitors

Costco raises minimum wage above its competitors
one prawn of President Joe Biden's $1.9 trillion coronavirus relief plan is increasing the federal minimum wage to $15 an hour. We need Congress to pass my American rescue plan. Americans in the food industry have mixed views on the proposal. It gives me hope that in my past, federally because I believe it is long overdue. I think this is relief that workers have been waiting for a long time even before this pandemic. Cristian Cardona, a 21 year old fast food worker, is part of the fight for 15 effort in Florida and wants to earn enough to afford to move out of his parents house and attend college. Earning a living wage would mean for a lot of us that we don't have to live paycheck to paycheck just to make it. Maybe we'll have time to make some art or just live our lives. So we're race Children or take care of our loved ones or just, like, get a hobby like have some free time because life is not just about working full time, making your boss a dollar while you make a penny. Yeah, more than 100,000 U. S restaurants have already shut down since the pandemic began, according to the National Restaurant Association. And critics argue now is not the time for a hefty wage increase. I am in favor of increasing the minimum wage. I'm not in favor of increasing it right now until we are completely from an economic perspective out of the pandemic, especially for the restaurant industry, because we've been hit so hard and very little support has come our way. Nyah Marshall opened Ivy Kitchen and cocktails two years ago. She says revenue right now is down 85% and fears that higher labor costs could deliver the final blow to her business. Black people have been affected a lot more. 48% of black businesses have shut their doors and there is no plan for them to reopen. I don't want that to happen to us, but I do know that that is a real possibility, especially if we are imposed on labor increases right now and every single week. I wonder, is this the week? Is this the week? I'm not gonna be able to pay these people this the week I'm already behind on everything else My goal right now is to try to keep my employees paid, keep my utilities on. Simply put, first one is the economic relief related to Cover 19 Pandemic. The fate of Biden's minimum wage proposal remains hazy and faces an uphill battle in Congress to remain on the massive cove in 19 rescue package. Regardless of the outcome, both Marshall and Cardona plan to keep pushing for economic solutions. They feel help average Americans. I am a huge advocate for the restaurant bailout that the independent restaurant coalition is asking for. I would just like to emphasize the fact that workers they're not given rights workers have to fight for their rights. We have to come together. We have to stand up. We have to organize, and we have to show them that we're not going to back down. Nathan Algren, Associated Press
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Costco raises minimum wage above its competitors
Video above: U.S. worker, employer debate Biden $15 wage proposalCostco will raise its starting rate for hourly store workers in the United States to $16 an hour, putting its starting wage above rivals such as Amazon, Target and Best Buy.Costco has around 180,000 U.S. employees, and 90% of them work hourly. It will hike its minimum wage to $16 beginning next week, chief executive Craig Jelinek said Thursday at a U.S. Senate Budget Committee hearing on worker pay at large companies.The move comes as Democrats in Congress seek to rally support for a $15 federal minimum wage. Sen. Bernie Sanders is the driving force behind Congress' current push to raise the federal minimum wage, introducing a bill last month to increase it to $15 by 2025. President Joe Biden has also backed a $15 minimum wage. The federal minimum wage has stood at $7.25 an hour since 2009, but a growing number of cities and states are raising their minimum wage. Costco, based in Issaquah, Washington, raised its minimum wage to $14 in 2018 and $15 in 2019. The company says 20% of its hourly employees make the minimum wage.More retailers and restaurant chains have also moved to a $15 an hour minimum rate. Amazon raised its starting wage to $15 in 2018, while Target and Best Buy bumped up their minimums to $15 last year. Walmart, the largest U.S. retailer, has an $11 minimum wage, and it said last week that it planned to raise pay for around 425,000 employees, a quarter of its workforce, to at least $13 an hour.Arindrajit Dube, a professor of economics at the University of Massachusetts Amherst who studies the minimum wage, said Costco's move would put pressure on rival employers such as Amazon to match its $16 minimum.Although some companies have moved to $15 an hour or above, many business leaders oppose a $15 federal minimum wage. Some employers, particularly small businesses, have fought against raising the minimum wage to $15, saying it could prompt layoffs and even closures.In a letter to Congressional leaders Wednesday, the Business Roundtable suggested for the first time that the minimum wage hike should be linked to progress in defeating the coronavirus pandemic.Also on Wednesday, Matthew Shay, president of the National Retail Federation, a lobbying group for retailers, said on a call with reporters that "it doesn't make sense for the federal government to be in the business of dictating wages in an economy as broad and diverse in scope as this one is...It's best to let market conditions dictate" wages.CNN's Tami Luhby and Matt Egan contributed to this article.

Video above: U.S. worker, employer debate Biden $15 wage proposal

Costco will raise its starting rate for hourly store workers in the United States to $16 an hour, putting its starting wage above rivals such as Amazon, Target and Best Buy.

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Costco has around 180,000 U.S. employees, and 90% of them work hourly. It will hike its minimum wage to $16 beginning next week, chief executive Craig Jelinek said Thursday at a U.S. Senate Budget Committee on worker pay at large companies.

The move comes as Democrats in Congress seek to rally support for a $15 federal minimum wage. Sen. Bernie Sanders is the driving force behind Congress' current push to raise the federal minimum wage, introducing a bill last month to increase it to $15 by 2025. President Joe Biden has also backed a $15 minimum wage. The federal minimum wage has stood at $7.25 an hour since 2009, but a growing number of cities and states are raising their minimum wage.

Costco, based in Issaquah, Washington, raised its minimum wage to $14 in 2018 and $15 in 2019. The company says 20% of its hourly employees make the minimum wage.

More retailers and restaurant chains have also moved to a $15 an hour minimum rate. Amazon raised its starting wage to $15 in 2018, while Target and Best Buy bumped up their minimums to $15 last year. Walmart, the largest U.S. retailer, has an $11 minimum wage, and it said last week that it planned to raise pay for around 425,000 employees, a quarter of its workforce, to at least $13 an hour.

Arindrajit Dube, a professor of economics at the University of Massachusetts Amherst who studies the minimum wage, said Costco's move would put pressure on rival employers such as Amazon to match its $16 minimum.

Although some companies have moved to $15 an hour or above, many business leaders oppose a $15 federal minimum wage. Some employers, particularly small businesses, have fought against raising the minimum wage to $15, saying it could prompt layoffs and even closures.

In a letter to Congressional leaders Wednesday, the Business Roundtable suggested for the first time that the minimum wage hike should be linked to progress in defeating the coronavirus pandemic.

Also on Wednesday, Matthew Shay, president of the National Retail Federation, a lobbying group for retailers, said on a call with reporters that "it doesn't make sense for the federal government to be in the business of dictating wages in an economy as broad and diverse in scope as this one is...It's best to let market conditions dictate" wages.

CNN's Tami Luhby and Matt Egan contributed to this article.