Lt. Gov. Pat Quinn commends Costco for paying workers a living wage

(CHICAGO) - On Tuesday, July 25, Lt. Gov. Pat Quinn held a news conference at Chicago's only Costco Warehouse store to commend the company for offering decent wages and fair benefits to all workers - a policy that has made Costco one of the nation's most successful retailers and demonstrates that paying every employee a living wage can be good business.

 

            "By paying workers a decent wage, Costco has reduced turnover and training costs," Quinn said.  "That's just good business practice, and it's reflected in the bottom line.  In the last quarter, Costco's profits rose 12.3 percent. In May, Costco's sales were up 10 percent over last year. That proves that a major retailer can pay a living wage to every worker and still prosper."

 

The Lt. Governor strongly supported Chicago's proposed living wage ordinance, which the City Council passed on Wednesday, July 26.  The ordinance will require big box retailers, such as Wal-Mart and Target, to pay workers at least $9.25 an hour, plus $1.50 an hour in benefits.  The lowest wage at the big box stores - defined in the ordinance as stores of at least 90,000 square feet, owned by retailers with total annual gross revenues of at least $1 billion - would increase each year, to $10 an hour plus $3 an hour in benefits by 2010. The living wage ordinance was introduced by Ald. Joseph A. Moore (49^th), Ald. Fredrenna Lyle (6^th) and Ald.Rey Colon (35^th).

Quinn, who was joined by a group of about 30 community activists, noted that Costco's top-level management recognizes the importance of sharing the company's wealth with its front-line employees, the workers who make the retailer's economic success possible.  "Costco's CEO, James D. Sinegal, made $2.77 million last year," Quinn said. "Compare that with Wal-Mart's H. Lee Scott who raked in $15.7 million in total compensation, or Target's Robert J. Ulrich, whose compensation package topped $16.5 million last year.

"This is an issue of basic economic justice," Quinn said. "If a company can afford to pay its CEO more than $16 million a year, it can afford to pay a living wage to its employees, the hard-working people on the front lines. If we want to preserve the middle class in our country, states and municipalities have to take action to make sure all workers get the fair living wage they deserve. I hope Chicago's City Council will pass this ordinance, because it will make a real difference in the lives of hard-working men and women and their families."