Monday, June 30, 2008

Wage Against the Machine - If Costco's worker generosity is so great, why doesn't Wal-Mart imitate it?


Costco. Click image to expand

Nearly everyone who's looked at Wal-Mart's practices as an employer—its union busting, sex discrimination, low wages, and minimal benefits—has concluded that it's America's retail bad guy. By contrast, many who've examined the practices of Wal-Mart's competitor Costco—including New York Times labor reporter Steven Greenhouse in his recent book The Big Squeeze: Tough Times for the American Worker—conclude that it's the good guy. Costco CEO and founder Jim Sinegal repeatedly insists to Greenhouse that treating employees well is "good business."

That makes a pleasing sound bite, and assume for a moment that Sinegal's assertion is true. Why, then, wouldn't Wal-Mart do everything it could to make itself more like Costco? Now assume that Sinegal's assertion is false. Why, then, does Costco treat employees better if that's against the company's financial interests?

http://www.slate.com/id/2194332/pagenum/all/#page_start

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