Saturday, August 10, 2013

Rivals Beating Wal-Mart on Prices & Wages

WinCo, a small, employee-owned grocery store chain based in Boise, Idaho, is able to beat Walmart’s prices on goods while providing its employees with good benefits. 
The company, which will soon have close to 100 stores with the latest openings in Texas, has almost 15,000 employees. Those who work at the store long enough qualify for a pension plan into which the company puts an amount equal to 20 percent of their yearly pay. More than 400 “front-line” workers — clerks, cashiers, and others who are not at the executive level — have retirement accounts that are worth at least $1 million, according to a company spokesman. 
It also provides full health benefits for those who work at least 24 hours a week, beyond the requirements in the Affordable Care Act. While the company is private and hasn’t made wage information available, Glassdoor reports that cashiers and clerks make more than $11 an hour. Thanks to these benefits and wages, the company has low turnover. An industry analyst estimated that the average hourly worker stays with the company for more than eight years...
Other rivals are also able to offer cheap goods and good working conditions. Costco, which competes with Walmart’s Sam’s Club, pays employees $21.96 on average and nearly all of the workers who are eligible for benefits are enrolled. Its bottom line is strong, with profits up 19 percent in the first quarter of the year. It also gets much more revenue and profit per employee and generates a higher return for investors than Walmart...
The article goes on about how Wal-Mart's sales have been hurt by its failure to hire enough employees to get shelves stocked and pays them so poorly they do not provide decent customer service. Given how terribly Wal-Mart treats its workers, this is no surprise.

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