Employment and the Minimum Wage

I didn't know this about Costco, seems a significant number of the folks that work there, haven't any benefits and many qualify for food stamps:

http://www.bloomberg.com/news/2013-08-28/costco-s-second-class-citizens.html

Apropos of yesterday’s post on Costco, Wal-Mart and Trader Joe’s, Ira Stoll passes on the following piece of information, which I hadn’t known about:

On two recent visits to a Costco in Dedham, Mass., I found the aisles full of employees wearing badges, offering samples of food, and answering questions about where to find merchandise. They don't work for Costco, but for a company called Club Demonstration Services. (A similar company called Warehouse Demonstration Services handles the Costco work in some other states.) Posts on employment law bulletin boards (here) say things like, "I work for Club Demo Services within Costco. We are titled Sales Advisors and do all the demos in Costco. We are all part time, no benefits, @$11.00 per hour. Our shift is 6 hours - a paid 15 minute break and an unpaid 30 min lunch." The Warehouse Demonstration Services site describes it as "a perfect part-time job."

This article from 2008 tells more about the way that Costco treats these demonstrators who work in its stores as second-class citizens, or at least, with lower compensation than its regular employees, and, in some cases, wages so low that the employees qualify for food stamps.

...
Click to expand...
 
Annie said:
I didn't know this about Costco, seems a significant number of the folks that work there, haven't any benefits and many qualify for food stamps:

http://www.bloomberg.com/news/2013-08-28/costco-s-second-class-citizens.html
Click to expand...

I believe the young woman is mistaken about Sam's club. I believe they also outsource their food demonstrations.

It has generally been understood in our society that part time employees don't receive the same benefits as full time. It is also known that most subcontracted employees don't earn the same as employees who work for the company, at least in the oil industry.
 
Rana said:
I believe the young woman is mistaken about Sam's club. I believe they also outsource their food demonstrations.

It has generally been understood in our society that part time employees don't receive the same benefits as full time. It is also known that most subcontracted employees don't earn the same as employees who work for the company, at least in the oil industry.
Click to expand...

The rub is they'd like to be full-time and work for Costco, seems that path is not open. Weird that Costco is supposedly so compassionate and all. Pay 'some more than competition' but hire fewer workers. Throw a Costco badge on all.
 
Annie said:
The rub is they'd like to be full-time and work for Costco, seems that path is not open. Weird that Costco is supposedly so compassionate and all. Pay 'some more than competition' but hire fewer workers. Throw a Costco badge on all.
Click to expand...

My husband wears a badge of the contractor, it is for security purposes. Working for a subcontractor, getting your foot in the door, you could then apply to the contractor for a job within their firm.

I don't understand why there is a problem with paying well and hiring less workers? My local Costco seems to have very little turnover, I have seen the same faces there over a long period of time.
 
Rana said:
My husband wears a badge of the contractor, it is for security purposes. Working for a subcontractor, getting your foot in the door, you could then apply to the contractor for a job within their firm.

I don't understand why there is a problem with paying well and hiring less workers? My local Costco seems to have very little turnover, I have seen the same faces there over a long period of time.
Click to expand...

I think that hiring more, promoting from within are all good things. Bottom line, companies are going to alot x number of $$ for salaries/compensation/benefits. Of course salaries vary with position, but like jobs should be paid approx. like wages. Costco is held by some as some wonderful company that just can't do enough for their employees, when the truth is, they aren't hiring as many as they could.

That 10% of those working there aren't really working for Costco, not getting the supposed great pay and any benefits, is not something most folks know. Probably don't care much either.

Truth is, those that have theirs, really haven't compassion for those that don't, other than slogans. Costco seems to have mastered that.
 
What needs to be pointed out here is that eliminating the minimum wage will do what it's meant to: lower wages. So the folks earning horrificly low wages will take a pay cut. And if you cut welfare to go along with it...
 
You must log in or register to reply here.
Back
Top