Costco (COST) – Get Costco Wholesale Corporation Report is known as a good place to work. It even paid its employees $15 an hour for most places.
Glassdoor is a website where employees can rate their jobs based on salaries, interviews and benefits by providing photos and reviews. Costco has more than 13,000 reviews on its website, with 80% of employees recommending working at Costco. In fact, more than 2,254 reviews stated that they “love Costco because they offer you a living wage and great benefits, even if they work part-time.”
With this being said, there are still some downsides to the employee experience ratings for the large scale grocery store. In 792 of the reviews, employees mentioned management issues: “Bad management by not listening and listening to employee problems and situations.”
In 451 reviews, employees noted that Costco was “very effective at keeping selective employees in check when the managers don’t like that particular person.”
With this in mind, employees have made their needs and wants known to Costco, and if not met quickly, Costco will take a big hit.
How Costco has tackled inflation?
In a recent article, TheStreet reported how supermarket inflation would positively affect Costco: “As beverage prices continue to rise, companies with initiatives to sell cheaper items are exuding optimism as consumers flock.”
Daniel Kline of TheStreet also mentioned how Costco planned to raise membership prices because of high inflation, which it usually does every five years. But this year, Costco decided not to do it due to 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 its chicken box by 33% (from $2.99 to $3.99) and its refillable 20-ounce cup of soda ($0.59 to $0.69), Daniel Kline reported for TheStreet. .
These are just some of the ways Costco has made changes in the face of inflation: with price changes and financial projections. In the background, employees are engaged in a bigger fight.
Costco employees demand change
As of August 4, 2022, employees will continue to negotiate with Costco about a desire for a new national contract.
This struggle has been continuous. Workers were offered a contract in June, which the major company labeled “last, best, and last.” But the offer was quickly rejected by more than 93% of employees. Negotiations continue this week, but so far they look grim.
Still, the Teamsters, the largest union in the US, will step up their efforts, said Teamsters general chairman Sean M. O’Brien: “Our members at Costco will stand up for their rights and withhold their labor if necessary.”
O’Brien also noted that the 1.2 million member team will act together if the stated needs are not met.
Mike Bergen, Secretary-Treasurer of Local 166 and Chairman of Teamsters Costco’s National Negotiating Committee, discussed some of the 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 the employees who make them profitable. They don’t seem to care about their employees anymore.”
Tom Erickson, International VP and Director of the Teamsters Warehouse Division, notes Costco “can afford to pay” [its] members their fair share of those profits, especially after it “made a killing” [its] backs of members during the pandemic.”