Costco is raising its minimum wage to $16 an hour next week, says that 'isn't altruism'

The Democrats' push, most prominently by Sen. Bernie Sanders (I-Vt.), to raise the federal minimum wage to $15 an hour hit a significant snag on Thursday. But Costco, the No. 2 U.S. bricks-and-mortar retailer, raised the ante anyway, announcing Thursday — at a Senate hearing chaired by Sanders — that it is raising its own minimum wage to $16 an hour, starting next week. Costco set its lowest hourly wage at $15 in 2019, a year after raising it to $14. The federal minimum wage has been $7.25 an hour since 2009.

"I want to note: this isn't altruism," Costco CEO Craig Jelinek said at the Senate Budget Committee hearing. "At Costco, we know that paying employees good wages and providing affordable benefits makes sense for our business and constitutes a significant competitive advantage for us." About 90 percent of Costco's 180,000 U.S. workers are hourly employees, and 20 percent of them earn its minimum wage. The average hourly wage is $24, and Jelinek said the company has been paying a $2 hourly hazard bonus since March. That will end next month but be converted to wage increases company-wide, he added.

Costco's raise could pressure its large competitors to follow suit, CNN says. Target and Best Buy raised their minimum wage to $15 last year, while Walmart's minimum wage is $11, rising soon to $13 an hour for about a quarter of its workforce. Amazon's minimum wage has been $15 an hour since 2018.

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