Worker wages: Wendy's vs. Wal-Mart vs. Costco

[Omaha Steve]

http://money.cnn.com/2013/08/06/news/economy/costco-fast-food-strikes/?google_editors_picks=true

By Emily Jane Fox @emilyjanefox August 6, 2013: 1:37 PM ET



The workers hold similar positions at these companies. Levels of experience vary but the wages are representative of the average worker we interviewed.

NEW YORK (CNNMoney)
Can a company pay its workers well and also make money?

Many aren't quite hitting the right balance. Hundreds of dissatisfied workers at major American companies like Wal-Mart (WMT, Fortune 500), McDonald's (MCD, Fortune 500) and Wendy's (WEN) have joined protests nationwide in the past year demanding higher wages and better benefits.

One company that hasn't had to deal with such strikes is Costco.

The no-frills warehouse chain pays its hourly workers an average of just over $20 an hour, compared to just under $13 at competitor Wal-Mart. Even President Obama praised Costco in a recent speech about helping the middle class.

The recession has been good for companies that targeted budget-minded customers. Sales at Costco (COST, Fortune 500) have grown an average of 13% annually since 2009, while profits have risen 15%. Its stock price has more than doubled since 2009.

During the same period, discount retailer Wal-Mart's sales grew an average of 4.5% each year, profits rose 7%, and its stock price increased 70%.

FULL story at link.

[Isoldeblue]

1. I don't get how all those workers

can't understand that who they vote for will determine their slave wages. I almost feel as if they deserve what they get for being willfully ignorant.

[Mnemosyne]

5. How can they understand if no one has told them? The media is nothing less than propaganda machine

for the wealthy now.

Welcome to DU.

[Isoldeblue]

10. Thanks :)

I agree about the media, but it's still willful ignorance on the part of right wing voters.

You and I understand. What makes us different? What's keeping people from looking at all sides?

I'm glad to see the workers at Wally's and fast food places, striking and demanding a respectful, living wage.
But it's also important who we vote for. We have to raise the minimum wage and the GOP will never let that happen.

[Mnemosyne]

72. Willful ignorance is rampant in this country, agree. The strikes are very encouraging! Hope springs!

The gop want slaves and have come damn close to succeeding over the last couple decades. They have been the most successful branding experts for a very long time. I am not sure it can ever be turned around.

I am not so sure that much of the ignorance is willful, if there is basic brainwashing in place, can we still call it willful?

[Isoldeblue]

73. I am a strong believer in humans having the ability to choose

I know of several people who were brought up in very red areas, staunch republican families, who decided to look at what they were expected to believe in. And decided to choose to go democrat. My husband and I are two of those people who chose to change.
The information is easy to find and consider. The decision to go against one's family was more difficult.

Of course there are some who are more vulnerable to the brainwashing from the GOP. It's distressing to see that so many aren't willing to think twice about what they choose to believe or use their common sense to see that the ideology isn't working.

Maybe it's not so much willfully ignorant as it is lazy thinking. Or some are just so beaten down, that they aren't able to think past their next meal, if there is one or not for them or their children.

All in all it so sad and tragic that they can't see they are being used as tools for the GOP's 1% greed.

[Mnemosyne]

74. Much of my family were racist and bigoted. I cast the first democratic vote in the family since

women were allowed to vote in 1976. Going against my family cost me my family in the last decade, though my grandparents were actual sane republicans and loved me anyway, the sisters didn't see it that way. I do not miss their meanness and constant criticism. They are some of the most miserable people I've ever known.

Their mindset stops at about age 25, if I know it, it must be truth. No need to waste anymore time thinking.

I was always told that I think too much. Beats the alternative!

[JoeyT]

7. Most of them aren't voting at all.

When you're so close to the line that a few bucks could mean the difference between eating or not eating next week, you don't have the energy to keep up with politics or anything else that doesn't immediately directly concern you.

But by all means, sneer at the poor and wonder why they don't do what you want. It's worked out for us so far.

[awoke_in_2003]

8. And can they take off from work to vote?...

Probably not- it should be a national holiday.

[Moostache]

67. I agree...and I have the perfect day(s) already...

The TWO Days BEFORE Thanksgiving...

If we can turn the day AFTER into an orgy of consumerism and capitalist greed, the least we could do is make sure that the national elections are subject to a two-day voting period that allows EVERY eligible American to cast ballots by any and all means that can be confirmed - in person, online, via mail-in ballots, provisional if necessary.

There would also be 100% publicly financed campaigns that would not allow (under pain of incarceration and disqualification) any private "speech" to come with a $-sign attached to it. You'd also be limited to 2 consecutive terms in any branch of national government, with a mandatory 15-year ban on lobbying the Congress as well.

You think ANY of this has even a snow ball's chance in hell?
Me either...

[Isoldeblue]

13. Another one who loves to

knock someone down with a hateful sneer, that you know nothing about. Do you feel all nice and smug about yourself now?

You used their poverty to take me down a peg (incorrectly, I might add) and let everyone know how better and above it all, you believe you are.....

I did NOT sneer at them. I used the word "almost".

And for your information, you fool, I know what it's like to be poor for many years! I had to to go to Salvation Army for more food to feed my kids, because Food stamps wasn't enough. Later, I was homeless but, was fortunate to have a car that I lived in for seven months, before I got assisted housing.

So why am I different? Why are you? Why do we know that the minimum wage needs to be raised and that we need to elect legislatures that will do that? It is morally corrupt how they are taken advantage of.

I get impatient sometimes with people who can't see the forest for the trees. So sue me already, JT

[limpyhobbler]

9. I doubt most McDonald's workers voted Republican.

Anyways after election 2008 we had Dems in charge and what was done about McWages?

If we can be blamed somehow, I would say it's failure to organize, instead of waiting around for politicians to save us somehow.

[Mnemosyne]

12. My friend works at McD's and it is a hotbed of red in my area. She is made fun of constantly for her

progressive views.

I'm not sure the wingers there vote though, will have to ask her.

[limpyhobbler]

14. oh yeah that could be, depends on the location I guess...

[Mnemosyne]

71. I asked and my friend says that most of the wingers she works with do not vote. Idiots, but maybe

good for our country that they don't. Faux news rules for them!

NW Pa, red central area.

[Isoldeblue]

15. Partly true about organizing, for sure

But, that old excuse about how the dems had control for a few months is hogwash. First, there wasn't enough time to do much. And what the left did try to do, was filibustered constantly by the GOP.

[Gormy Cuss]

38. I was going to make the same comment re: organizing.

My very low income neighborhood had very few voters until community organizers came in and motivated people to take back some control. Within two years the neighborhood had managed to elect locals to the school board and even the state legislature.

[1StrongBlackMan]

64. I doubt …

(though I have no data to support my supposition) That most McDonald’s workers vote at all … and therein lies one of many problems.

[obxhead]

17. How can they understand

When MANY of those workers voted for change and STILL work at the same minimum wage rate as they did in 2007.

Blame anyone you want, but wages have been a "back burner" ignored issue by this admin.

[Isoldeblue]

18. My wanting them to have better life, is

not blaming them. I agree that enough hasn't been done to give what they deserve. But then, that wasn't my point.

I do blame the right for their working so hard to make us a third world country.....

[Koios]

2. The pride of ...

Kirkland, WA

Meanwhile, it's great that Obama can see that Costco is helping to grow the middle class. Maybe soon Obama will see it's actually more his and Congress' job to grow it, than it is Costco's job, and he can praise himself for making America a better place to live.

Fingers crossed.

[Control-Z]

4. This is Democratic Underground.

Our democratic president is well aware of his job and that of the "do nothing but obstruct" republican congress. Your comments make you appear either uninformed or misinformed. Are you getting your information from Fox News?

[Omaha Steve]

6. Take it easy on Koios

There was a list of things President Obama forgot to follow up on after he got elected. When he had the House and Senate, he still had his hands full with the 60 needed for cloture. But geez.

[VPStoltz]

11. And the constant threat of filibuster PLUS a few blue dogs sticking their fingers in his eye!

[Control-Z]

16. I can't tell if you're series!!11!

Or if you're serious and my spidey sense is failing me.

[Omaha Steve]

20. I was very serious

President Obama has let a lot of people down. There was a list of multiple things the President promised that never went anywhere over the weekend in GD. It made the greatest page.

I guess I'm saying fighter with others, not DUers.

[Control-Z]

21. So, 80 plus posts in one day

and a $5 star makes one a DUer? He wasn't even a registered member on the weekend. Ok.

[obxhead]

19. This is Democratic Underground

Not praise Obama underground.

I saw nothing wrong with the post you responded to.

[Control-Z]

22. No, it was the 85 other posts

(in one day) that tipped me off.

[Omaha Steve]

23. I didn't look up the stats

Am I to assume we have a troll with an iffy background here?

[Control-Z]

24. How many nice guys do you know

who show up and challenge DUers on vaginal probing, nuclear power, and various other subjects all in one day? Oh, and crap on the president? You decide. I just made an observation.

[Omaha Steve]

25. POINT TAKEN!!!

I stand corrected. THANKS.

OS

[obxhead]

26. so you are a self appointed troll.stalker.

Alert.on those 85 offensive posts. Stalkers suck. I spent months trying to oust Cantor and had a stalker here on DU fighting to keep him in office.

The right place at the right time. This was not the proper place.

[Control-Z]

27. What the hell are you talking about?

I read DU today and ran into said poster numerous times. All opposing my democratic sensibilities. This last one was just too blatant not to mention how he was sounding to me. You jumped in to save his day. I just told him what he sounded like. Nicely I might add.

Sounds like you have the problem. I've never stalked anyone.

[Koios]

28. Not Fox-fed, nor...

... an Obama apologist.

The thing is, Newt Gingrich was obstructionist, yet Clinton could still lead.

Tip O'Neil too tried to obstruct Reagan, but Reagan could still lead.

So why not Obama?

[Control-Z]

31. Why don't you tell us? (nt)

[Volaris]

41. Newt's idea of obstruction, was to shut down the Federal Government.

and that didn't exactly work out the way he wanted. Also, impeaching a President for a blowjob only made Clinton MORE popular, IMHO.
What Gingrich was doing was child's play compared to McConnell and the Tea Party idea of "good" governance.

Just what I remember of events.

Regan and O'Neil, by all accounts, RESPECTED each other. The House GOP, not so much it seems on the respecting side of things with this President.

Yeah, I'm dissapointed kinda too in some stuff. But we did get some stuff done, and there's more yet to come. If nothing else, we got Marraige Equality out of this President, and that's a bit aways (toward the better, for sure) from where we started with him. That by itself will be remembered and valued by American's who write the history books. If we could get around to actually IMPLEMENTING all the good thngs in the ACA on schedule, that will be history making too, if for no other reason than HMO's will contunie to do whatever they can to screw people out of thier money, and with the mandate in full effect, more people than ever will see it happen to them and loved ones. The next time we have to have a National Fight about health care, we will get (voluntary?) Medicare for All. It's the only thing left we won't have tried yet heh.



Don't worry 'bout the trolls. They always get defeated in the end of the Fairy Tale.

[Koios]

42. Clinton and Reagan lead ...

... Obama has not, no matter how we spin it.

O'Neill vowed that the Reagan plan would not get through HIS CONGRESS, and he had to eat crow, since Reagan lead and did not make excuses.

Gingrich was on top of the world. He'd just redefined what a midterm election gain was, having taken the pulse of the nation, like never before. Brilliant. But rather than make excuses, Bill Clinton lead, and played hard ball, unintimidated by Gingrich and his newly elected and uber loyal Congress.

Name on thing that Obama has done that even comes close.

[Auggie]

44. Unfair comparison -- this President faces opposition leadership

that has openly stated to destroy his effectiveness. Jackasses can't be lead.

[Koios]

46. Should be easier ...

... since they're dumb enough to admit to what Gingrich and O'Neill were doing but far too intelligent to say on camera.

You'd think a guy as smart as Obama would wipe the floor up with mental midgets like McConnell and Boehner, more easily than Clinton could the highly intelligent Gingrich, or Reagan did to one of the most power Speakers since Sam Rayburn.

But if not, no sweat. Let's give Obama a pass because those pinheads in Boehner's Tea-infused Congress won't let him win, and thus trying to lead as others showed a strong president can would be too much to ask of this president.

[Drunken Irishman]

68. Okay. I'll bite. What did Clinton lead on?

Welfare reform? NAFTA? DADT? DOMA? What economic policies did Clinton pass after the Republicans took over the House & Senate?

[Koios]

69. Answers ...

Lead on: NAFTA (good) and DADT (POS)

Followed on: DOMA (POS) and Welfare Reform (POS)

[Koios]

29. Meanwhile

I urge an increase in the minimum wage, to 12 an hour or better. And I've urged it more than once on this site.

So if that makes me a rightie troll, in your mind, then you need to rethink some things.

[Control-Z]

32. You've "crossed your fingers"

(wink, wink) one to many times.

[Koios]

34. Borrowing from Confucianism ...

... it would seem that none is more trolling than he who accuses others of being a troll.

[Control-Z]

35. I never called you a troll.

I said you sounded uninformed or misinformed.

[Koios]

39. Gotcha

Uniformed in what way? 60 posts in a day? $5 star? Fox-fed?

Scratch that. Let's move along and have a productive conversation, regarding low pay, and what can be done. K?

And here's my gripes:

1. Obama for some reason in 2010 said he'd work to raise the FMW to over $11 and hour in 2011. Why the wait is a mystery Moreover, he made no effort whatsoever in 2011 on the FMW issue.

2. In January of this year Obama once again talked about the FMW. But now only a measly $9 an hour; and once again, lip service. Nothing sent to Congress. Nothing saying do this or I'll block/veto/whatever everything the GOP hold near and dear. Nada.

3. But in service of his Capitalist advisors (Geithner et al) Obama is actually working to lower corporate taxes, with specific proposal and bills sent to Congress. Actually pushing for it and not merely paying it lip service.

4. Corporate after tax profits are record level. Effective tax rates on Corps are actually low already, historically. And working poor, and those falling into poverty is increasing. So workers who actually need help, get lip service. Corporate interests which are doing better than ever, get even more help -- with actual effort on the part of the Administration.

That's not what I voted for. It's not what Obama campaigned on in 2008, when I donated the limit for an individual. AND it's not what he campaigned on in 2012, when I donated $200, hoping he'd be just a smidge less of a Corporate Lapdog than Romney would be.

So yeah; I liberal Dem; I voted and donated to Obama's two campaigns; and I'm pissed about the half-assed job he's doing, for the average American, since unlike the minions, I vote for what they're going to do, and not who they are.

Back to you ...

[Control-Z]

52. You're missing the point.

Being a know-it-all, though, you probably really aren't (missing the point).

Hint: It's not nice to show up all new and unknown and start pushing people around right out the gate. I bet you're fun at a party.

[Koios]

53. No sweat ...

... what point?

[Sunlei]

45. The President has had a $9 for the Fed min. in front of Congress for 4? years. Congress ignores.

In case you didn't know the states can raise their minimum wage anytime your STATE gov. wants. So it's your state Governor you have to ask.

States are required to at the least match the Federal minimum wage.

[Koios]

48. We already ...

... have the highest MW in the nation (WA) which is $9+ already.

Problem is, local MWs do not work, and become a pure cost-side element, since nothing is done on the demand-side (other companies paying their workers more) to offset.

So, yeah; Obama need to do more than pay lip service to it. Lead on it, as he did extending Bush Tax Cuts for the rich, and is now doing to lower Corporate Tax Rates.

[Sunlei]

50. Then you'll have to work on YOUR state to get your 12.

pay lip service? I don't think you have paid much attention to the past 4 and now almost 5 years of Federal level republican crap.

[Koios]

51. Yes ...

First in 2010 saying he'd work on raising it to over $11 in the following year ... then crickets chirping ... until

SOTU address this January, when he said it needs to be raised to only $9.

So your contention that the $9 / hr has been urged of Congress for 4 years is wrong. He's done squat, but talk. No deals. No bills submitted. Nada.

On extending tax cuts for the rich, and now for lower taxes on corporations with record profits, he's doing far more: lobby for it; making deals; send bills to Congress; get the Bush Cuts extended for 2 years, and not repealed as he promised in 2008.

If he made half the effort for the MW than he has for Wall Street and Corporations, I'd lead an effing parade in his honor. But he hasn't done squat, aside from some occasional lip service. Fact.

[Sunlei]

61. The Presidents federal wage discussions have resulted in bills.

House and Sen. Ds have introduced bills to raise the Federal minimum wage.

[Koios]

70. Bill, singlular ...

Dems in Congress (minority) introduced the Catching Up to 1968 Act of 2012. Leadership from the White House / Senate to force its passage: 0

[Sherman A1]

3. K&R

[demigoddess]

30. people who work at Costco are

always so much happier and nicer. The other places you just get grouchy and depressed.

[NewJeffCT]

33. The minimum wage should be doubled

and then indexed to inflation. Democrats should make sure to campaign on increasing the minimum wage, as it's a winning issue. I think Rachel Maddow has looked into this extensively in the past, and i think it was part of Howard Dean's strategy before, too.

However, I don't think it's realistic that it passes any time soon.

Connecticut has a Democratic governor and a near super majority of Democrats in both houses of the state legislature, but they still chickened out when it came to increasing the minimum wage by a good amount. (I don't think there is a filibuster to block at the state level, either)

If one of the bluest states couldn't pass an increase, I don't think it would fly on a national level.

[BlueManFan]

37. But That Would Dry Up the Millions In Campaign Dollars That Flow To The

mouthpieces on both sides of the aisle that benefit from corporate bribes. We have got the get the money OUT of politics so we have some chance of government for folks who respond to the "human" people and not just the "corporations are people too my friend" crowd.

[bobclark86]

40. Cesar's a 19-year veteran forklift operator...

You need training (like a certificate) to be an approved forklift operator -- they can easily kill a person if not handled correctly. Cinnamon is a counter worker at a fast food joint, making a starting wage in a non-skilled job. Comparing one to the other is bull, made solely to make Costco look all noble and perfect (they have a hell of a PR department getting the word out on this). The story doesn't ask this question: What is the starting salary for a checkout worker at Costco? We NEED that to make a decent comparison. Otherwise, we have an apples to cheeseburgers comparison.

To the "reporter" who wrote the original piece: Get back to us with something that doesn't scream "reheated turd of a press release" and we'll talk.

FUN FACT OF THE DAY: I work for a daily newspaper. I know how the job is supposed to be done. This "story" isn't it. I say the same thing to lots of people when I see this kind of crap. BTW, I know Costco is superior to most other big boxes and fast food, but we don't need to spice this up with skilled HMEO (heavy machine equipment operator) posts to the dude saying "you want fries with that" to prove the point.

THAT SAID: We obviously need to change something in this country. We need to raise the minimum wage while a) preserving extra pay for those making more than minimum wage (because companies historically have raised wages of those over the old minimum wage but under the new minimum wage to exactly the new minimum wage, blowing out previous raises for longevity, merit, etc.), and b) preserving the buying power, as most businesses use rising minimum wages as an excuse to jack up prices, leaving those at minimum wage worse off than before.

[Bigleaf]

43. Costco's starting pay is $ 11.50/hour.

“Costco has long advocated employee pay and benefits that exceed industry standards on the argument that better compensation lowers turnover and increases productivity.

In his statement, Jelinek said Costco’s starting pay is $11.50 an hour in the United States.

“Instead of minimizing wages, we know it’s a lot more profitable in the long term to minimize employee turnover and maximize employee productivity, commitment and loyalty,” Jelinek’s statement said.

http://www.forbes.com/sites/timworstall/2013/03/06/of-course-costco-supports-a-higher-minimum-wage-it-already-pays-above-it/

[exboyfil]

49. I agree with Bigleaf

that the graphic is deceptive. They should show comparable comparisons where available or note why they are not available (Wendy's would be much more of a pyramid structure with a few managers and the remaining workforce requiring low level skills). A checker at Costco is more equivalent to a typical worker at Wendy's. Wendy's would have nothing that corresponds to a forklift operator.

That being said I don't think any major fast food place would compare favorably to Costco. Neither will big box retailers like Wal-Mart, Sam's Club, and Target.

Has anybody done an in depth study on the business model between Sam's Club and Costco.

[bobclark86]

62. Would have been nice in this article...

AND it STILL would have made for a good graphic. But nooo, somebody felt like inflating it a bit to make it more "dramatic."

[skepticscott]

60. Exactly

missed your post before I made the same point below. And yes, a little tighter adherence to the truth might have served the author better.

[exboyfil]

47. I wish we had a COSTCO

I wonder why their business model excludes growing into a pretty prosperous community of nearly 300,000?

[Koios]

54. Because ...

... 300,000 is smallish, and may not meet the median income levels that Costco's model requires.

[exboyfil]

55. Then do you think it is fair to compare

Costco to Sam's Club for example. Is Costco cherry picking the most profitable communities (limiting growth but able to have a business model which includes better pay for its employees)? I haven't been into a Sam's Club in at least 14 years, but they provide goods at prices competitive to Costcos. Without utilizing them people in my community face a desert of higher prices by not being able to take advantage of Costco.

[Koios]

56. Huh?

Retailers always cherry-pick!!!! They do not expand into markets which lack the demographics needed, in theory, to sustain their model. McDonald's limits franchises, until local populations increase to a point to sustain a new location. Costco goes into markets where any other retailer, including Sam's Club, is free to go, too, if it wishes.

Meanwhile, Costco wins with a model that better serves small business, and works with suppliers on packaging and other efficiencies. And Costco has the highest customer satisfaction rating of any major retailer in America. That's why it's winning against other "wholesale club" retail models.

They pay better because a) the founder / former CEO is a Liberal Dem who believes the success of the company depends on workers, too. And paying better, creates a more loyal workforce. Bravo, Jim Sinegal for leaving a great legacy behind, and enjoy your retirement, as a billionaire.

[ceonupe]

57. Article fail

The Cisco worker is a 19 year veteran worker.

He has specialized skills used by costco

The other 2 are lower level specificly the Wendy's worker is a cashier.

Yes workers on the lower end need to be paid more but how do you pay for it?

And why is this article so deceptive and slanted to hype costco?

And yes what an earlier said about Costco business model and the locations they choose.

FYI fast food workers and other low wage workers that work at flagship/high end locations usually make more than most in other locations. For example the McDonald's workers at a specific McDonald's in Hilton head sc that does not even have a dollar menu and combos cost 8.99 and up all start out at about $12 an hour. Yes the staff is better the service is better the resturant is better but its really on a McDonald's in name only as you won't find mcdoubles or other value items on the menu at all and you can forget about advertised specials.

[mecherosegarden]

58. Wow, Costco pay more than some agencies

pay to Mental Health Counselors here in California. I just got my Psy. D. and I am looking for a Post-doctoral position. So hard to find jobs that will pay enough to start paying my student loan and living expenses. Even as bilingual certified. Applied to some county jobs, passed the "oral interview" and placed in a list with several qualified applicants . Goodness.

[skepticscott]

59. Similar positions?

Last edited Wed Aug 7, 2013, 10:22 PM - Edit history (1)

If you read down in the article, Cesar Martinez is a forklift operator. Makes me wonder what someone would be doing at Wendy's that's "similar".

The caption also claims that "wages are representative of the average worker we interviewed", but the text of the article says that Wal-Mart's average pay is just under $13 an hour, quite a bit different than the $9.40 an hour example they put up as the poster child.

Good for Costco, but it does seem like the author is playing very loose with the facts and the numbers to try to push an agenda. If there's a case to be made here, why not make it with the truth?

[1StrongBlackMan]

63. Did anyone else notice …

Something (possibly) telling about the article’s graphic?

Wendy’s: Black Female … Lowest paid

Wal-mart: Black Male … 2nd lowest paid

Costco: White Male … Paid more than twice what the others are paid.

I’m certain (really, really want to believe) that was just an unconscious, unfortunate representation … that just happens to reflect the reality of America.

[yoloisalie]

65. Yea, but a lot of people here have already debunked

the "equivalent" position line. Also the Costco guy is a latino. No needs trying to make a racial case out of it. Theses businesses pay the same low wage to black, white and purple people.

[1StrongBlackMan]

66. Okay ...

I couldn't see the employee's names when I posted ... I just could see the picture.