In response to U.S. tariffs on Canadian goods, Costco plans to decrease its reliance on Canadian products in its American stores. CEO Ron Vachris anticipates price increases on items from Canada, China, and Mexico but expects to offset these by sourcing more products from countries unaffected by tariffs. Costco currently sources less than 20% of its U.S. products from these three nations. Despite these challenges, the company reported strong overall sales growth in both the U.S. and Canada during the fourth quarter.
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Costco’s recent announcement of a significant hourly wage increase for most of its US store workers to over $30 is generating considerable buzz. This move, which will see the top scale employees earning $30 an hour and the bottom scale employees earning at least $20, represents a substantial investment in its workforce.
The impact of this decision is multifaceted. For employees, it means a considerable improvement in their earning potential, offering a more livable wage that addresses the rising cost of living. Many commenters have expressed their excitement about the raise, emphasizing that it is a step in the right direction, particularly when compared to wages offered by other retailers, some of which may barely reach minimum wage levels.… Continue reading
Costco shareholders overwhelmingly rejected (98% opposed) a proposal from the National Center for Public Policy Research (NCPPR) to curtail the company’s diversity, equity, and inclusion (DEI) initiatives. The board recommended rejecting the proposal, citing its alignment with Costco’s commitment to respect and arguing that the DEI programs are legally sound and beneficial for business. This decision contrasts with other corporations that have scaled back DEI programs following the Supreme Court’s ruling in *Students for Fair Admissions v. Harvard*. Costco maintains its DEI efforts enhance employee attraction and retention, despite NCPPR’s concerns about potential discrimination lawsuits.
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As the January 31st deadline for the Costco National Master Agreement nears, over 18,000 Teamsters nationwide, including those in San Diego, are engaging in practice pickets to demonstrate their commitment to securing a new contract. These actions, following similar demonstrations in other locations, underscore the union’s demands for improved wages and benefits, citing Costco’s substantial recent profit increase. Negotiations are scheduled to resume on Monday near Costco’s headquarters. The union’s strong stance highlights the disparity between company profits and worker compensation.
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John Q. Hosedrinker 
Matt Underwood