Wal-Mart vs. Costco

Wonderful news in from LabourResearch.org, that sheds some light on the lies that Wal-Mart has fed to us all for years now. It seems like paying workers a living wage actually makes good business sense, and when your workers are able to afford to be consumers, home owners and tax payers themselves - society as a whole may benefit. Another standout from this article is that Costco CEO Jim Senegal takes home only about 10 times the pay of a typical Costco employee, contrast that with the salary of Wal-Mart’s Lee Scott whose take home pay was a whopping 5.3 million dollars, a little more than that of most Wal-Mart employees who on average are paid $9.68 an hour.

Highlights from the article should you care to read only a synopsis:

Costco v. Wal-Mart: How They Stack Up

Global Workforce
Wal-Mart: 1.6 million associates
Costco: 113,000 employees

U.S. Workforce
Wal-Mart: 1.2 million
Costco: 83,600

U.S. Union Members
Wal-Mart: 0
Costco: 15,000

U.S. Stores
Wal-Mart: 3,600
Costco: 336

Net Profits (2004)
Wal-Mart: $10.5 billion
Costco: $882 million

CEO Salary + Bonus (2004)
Wal-Mart: $5.3 million
Costco: $350,000

Average Pay
Wal-Mart: $9.68/hour
Costco: $16/hour

Health Plan Costs
Wal-Mart: Associates pay 34% of premiums + deductible ($350-$1,000)
Costco: Comprehensive; employees pay 5-8% of premiums

Employees Covered By Company Health Insurance
Wal-Mart: 48%
Costco: 82%

Employee Turnover (estimate)
Wal-Mart: 50%
Costco: 24%

Sources: Wal-Mart, Costco, Business Week, Forbes.com

More reasons never to let your shadow darken the aisles of Wal-Mart.