In 2021, wholesale giant Costco announced that it would be raising its minimum wage to $16 an hour. However, between the record profits Costco has made and the continued inflation pressure, some workers find the company's latest round of raises insufficient.
One worker explained on Reddit how Costco intended to give its "topped out" workers a $0.75 raise. With Costco reducing their $2 pandemic hazard pay to a $1 pay raise, the note writer concluded, "This $0.75 'raise' means you will be earning $0.25 less per hour than you did two years ago when hazard pay was fully in effect."
Workers felt the move was a slap in the face since the company's net income drastically increases every year. The workers proposed a 10% raise and an additional increase of $1 per hour each year to account for the cost of living increases.
Costco's CEO, Craig Jelineck, earlier pointed out that Costco's move for the minimum wage increase was more cost-effective than constantly hiring new workers. However, the complaint on Reddit could potentially hurt Costco's image, as one customer said they will not support the company if it continues to treat employees unfairly.