In a New York Times business story (now unavailable), captured and commented on by The B.S. Corner, we read that Jim Sinegal, the chief executive of Costco Wholesale (fifth-largest retailer in the US) has a radical notion. He does the right thing.
Sinegal pays his employees a decent living wage, he doesn't force them to pay their own health-care costs, and he doesn't fight them if they choose to unionize.
He rejects Wall Street's assumption that to succeed in discount retailing, companies must pay poorly and skimp on benefits, or must ratchet up prices to meet Wall Street's profit demands.To say this is a stark contrast to business practices at Wal-Mart is the definition of understatement. The folks at BuyBlue rate Costco a whopping 99%. (Wal-Mart rates 22%.) Definitely: Girlcott!
At Costco, one of Mr. Sinegal's cardinal rules is that no branded item can be marked up by more than 14 percent, and no private-label item by more than 15 percent. In contrast, supermarkets generally mark up merchandise by 25 percent, and department stores by 50 percent or more.
Mr. Sinegal, whose father was a coal miner and steelworker, gave a simple explanation. "On Wall Street, they're in the business of making money between now and next Thursday," he said. "I don't say that with any bitterness, but we can't take that view. We want to build a company that will still be here 50 and 60 years from now." [Full Times story here, thanks to LonePrimate.]
If you're not familiar with the expression, a girlcott is the opposite of a boycott. The idea is to reward ethical business practices with your spending dollars. Some people dislike the faint sexist overtones (girls = shopping), but I like the positive action, and the playful name. I first heard the expression a million years ago, when the anti-nuke movement was urging people to buy New Zealand lamb, because of the country's anti-nuclear policies.
And do you know where the word boycott comes from? In the late 1800s, Captain Charles Boycott was an English landlord notorious for raising rents and evicting his tenants. His workers, organized by Charles Parnell and the Irish Land League, organized a campaign against him. Local people were encouraged to ostracize Boycott and his family. People stuck together and it worked. The Boycotts soon found themselves without servants, farmers, even mail delivery. Their crops failed, their household crumbled, and they were driven back to England.
As Casey Stengel said, You can look it up.
So: shop Costco. (And I thank Crabletta with reminding me, by example, to Buy Blue.)
In other, related news, Paul Krugman discovers what we already knew: Canada is good for business.
26 comments:
Wow, that's pretty sweet! I never knew all that. I used to have a Costco membership but I let it lapse because I never used it... I always just hauled tail to Wal-mart. Now I'll reconsider that. Thanks, Laura... you've empowered at least one person with some knowledge. :)
Oh, BTW, I just noticed you said it was inaccessible. When I read the Canadian article, I also noticed a link to the story you're talking about. I accessed it here.
Thanks, Laura... you've empowered at least one person with some knowledge.
And you, in turn, have made my day by telling me this.
I've blogged a lot about Wal-Mart, as part of the Purple Ocean campaign and WalMart Watch. W-M is the axis of evil employers.
I also noticed a link to the story you're talking about.
Very good! I'll link to that, thanks.
Cool!!
Good to know, thanks.
I shop at Costco all the time. As a matter of fact I'm off to Costco today (Make your own wine kits and 700 rolls of toilet paper are on sale this week) More reason to drive right by Wal-Mart on my way to Costco.
ALPF
More reason to drive right by Wal-Mart on my way to Costco.
Man, I don't even have the excuse of convenience... I can walk to Costco from where I work, but Wal-Mart's a 10-15 minute drive. I wish I'd known all this good news earlier. I feel like I've really been backing the wrong horse.
There are lots of reasons to avoid Wal-Mart these days. A couple of recent ones:
- When Quebec Wal-Mart employees formed a legal union, Wal-Mart responded by closing the store and putting them all out of work.
- Some Wal-Marts have recently adopted a policy that all employees must be able to take on any shift on a half-shift's notice -- and an inability to secure a babysitter is not considered a valid excuse. If you get a call saying "Be at work in four hours" and you can't because junior is sick, you get disciplined and could loose your job. It's believed that this was done as a way of weeding out employees who spend a lot of time caring for their children, as they're slightly less productive overall than other employees.
Wow, Laura--you are going to L.O.V.E. living in Mississauga!!!There's like a Costco every 20 miles. Still, there's way more Wal-Marts, however they are easily avoidable. If you see a pick-up truck or a Saturn--go in the opposite direction.
Me and Sweet Baby have hated Wal-Mart for years. We always have our worst fights there, and she ends up crying. So, one more reason not to shop there! Confession time, though: I do get a kick from going Mullet-watching there, on occasion. (I am a sad, shallow and pathetic person. Snark!)
I avoid wal-mart like the plague already, I shop at costco all the time and prefer Canadian Tire and Safeway for other items. Of course I have to shop at "crappy tire" because I am a shareholder! ;)
Anyway James, I don't know about where you live but in Alberta employers must provide at least 24 hour notice for shift changes and cannot discipline an employee for not accepting a change if they have reasonable grounds to do so.
So if it was afternoon on Monday and I was scheduled to work a shift on Tuesday and they cancelled it they would in fact still be required to pay me. There are some exceptions to certain classes of workers (ambulance techs, IT workers [why IT i don't know but it doesn't really piss me off cause I am on salary], etc.) but for the most part applies to most workers.
Peter
"Anyway James, I don't know about where you live but in Alberta employers must provide at least 24 hour notice for shift changes and cannot discipline an employee for not accepting a change if they have reasonable grounds to do so."
I should have pointed out, the Wal-Mart shift thing was in the US (don't know what State). It was unrelated to the Quebec Wal-Mart story.
Unfortunately, the common US hostility to labour regulations (they're socialist, you know) means that several States have very weak protections for workers.
There are lots of reasons to avoid Wal-Mart these days.
Very true. For more details, check out WalMartWatch.
Wow, Laura--you are going to L.O.V.E. living in Mississauga!!!There's like a Costco every 20 miles.
I am really looking forward to big suburban shopping. You'll read more about this in coming months, I guarantee it. I can hear you all yawning already. I promise, It'll be better than Ambien.
Re Wal-Mart Fights and MulletWatch, Andy, you crack me up.
...several States have very weak protections for workers.
You're being kind.
Boycott!
Thanks for the history lesson, or should I say "herstory." :) Girlcott! I like that.
Well, I just got back from Costco... they still had me in their system so I didn't have to jump through any hoops; just paid up and now I'm back in the saddle. Feels good! This primate officially girlcotts Costco. :) My first purchase, something I can't even get at Wal-Mart -- a lovely roast chicken, $6.99. Dear as Swiss Chalet is, it sure beats eight bucks for a quarter chicken white, let me tell you, spuds or no.
Wal-Mart horror stories... well, I had a web friend down in Louisiana who applied to work there. I'll never forget the e-mail she sent me, to the effect that "well, I passed the drug test; I can work at Wal-Mart!" [blink] You have to pass a drug test to stock shelves in Louisiana??? I could see if you were apply for air traffic control or President of the United States or something (ahem)... to just to be a casual worker in a retail store? Cee-ripes.
You might want to reconsider the "empowering" decision to shop at Costco...while it does pay marginally better in certain markets than Wal-mart (in others they pay equivalently) it is now the subject of a massive sex discrimination suit. It also engages in vicious bargaining with its suppliers, the same kind that are all over Wal-mart watch as being anti-competitive. In many East Coast cities, it is Costco more than Wal-mart that is driving the mom and pop stores out of business. If you think shopping at a place like Costco is somehow better than Wal-mart in terms of traditional liberal causes, you are sorely mistaken and betraying the causes you claim to support.
This primate officially girlcotts Costco. :)
I love it!
Re drug testing, most American shit-level jobs require it. If you haven't read it, I highly recommend Barbara's Ehrenreich's "Nickled and Dimed". It's a very readable and entertaining - and eye-opening - account of what it is to be among the working poor in the US.
Ehrenreich (a leftist journalist) travels to four different parts of the US, and applies for and takes four different jobs: a waitperson in a big restaurant chain (unnamed, but actually Dennys), a cleaner for a housecleaning service, an attendant in a nursing home, and a shelf-stocker at Wal-Mart. It's a must-read.
Ehrenreich interviewed by Bill Moyers.
If you think shopping at a place like Costco is somehow better than Wal-mart in terms of traditional liberal causes, you are sorely mistaken and betraying the causes you claim to support.
Well, I read a lot about it today at many reputable places, such as BuyBlue.org. Costco certainly seems to be way, way better than Wal-Mart.
If you have information to the contrary, I'd be very happy to read it. However, there's no need to be nasty about it. You could educate without the put-downs. I'm not trying to "betray" anyone, nor do I "claim to support" causes. I do support them all the time, every day.
According to everything I read today, Costco doesn't pay "marginally better" than Wal-Mar - it pays much, much better, plus pays for its employee's health benefits, which, as we know, Wal-Mart does not.
As far as a sex-discrimination suit, I would have to know more about it. The existence of a suit alone is not in itself meaningful, without more info.
Viscious bargaining with suppliers is A-OK with me. That's what keeps prices low, and shares profitable, instead of wringing it out of employee paychecks.
In any case, I'd be happy to know more, and if you could be a little nicer about it, that would be welcome, too.
Hey L,
Costco is WAY better than Wal-Mart. i did a post about this a while back. In it, I have a link to a piece by Jim Hightower detailing the evils of the Beast of Bentonvlle. I'll dig it up and send it to you.
Crabby
Thanks, Crabbi. I also tend to trust Buy Blue - which does tons of research - more than an anonymous commenter. But hey, educate me!
Hi there,
Certainly didn't mean to come off nasty. I've spent a little time on BuyBlue.org, and it certainly has an agenda, but it makes some good points. I'll make a couple here though:
1) The point that Costco pays "way better" than Wal-mart is based on national averages. The problem with national averages is that Costco and Wal-mart actually, on the whole, don't overlap very much in terms of where they are--Wal-mart built up quickly in rural areas, Costco has focused more on the coasts. Both Costco and Wal-mart have different pay scales depending on where their stores are, like any business. If you compare the salaries of Costco's that near Wal-marts, that is, in the same cities, their pay differences aren't that dramatic, if there are any at all. Few news stories do this.
2) Costco does have better health plans than Wal-mart. But again, they aren't dramatically better. Wal-mart does have health plans and in many ways, they are quite good--basically, they focus on covering catastrophic health care expenses (e.g. cancer) and force people to pay more for routine things in terms of co-pays. Costco has less co-pays. To me, that again isn't a big difference.
3) A lot of the pro-Costco news stories have arisen as a result of a few stories that appeared right before the election associating Costco with "blue" states and Wal-mart with "red", which is an accurate portrayl of their primary "bases". It's also an accurate portrayl of the political alignment of their executives...Costco executives give large sums to democrats. I've wondered if that has something to do with their favorable treatment by more democratic leaning websites (like BuyBlue).
4) Direct comparisons between Costco and Wal-mart aren't that useful, because they are different kinds of stores. Wal-mart carries lots of different brands in different sizes, Costco stocks a few brands in bulk. Plus Wal-mart is a lot bigger overall, which changes some of the dynamics...I think this may also be why Costco doesn't come under as much scrutiny.
6) Those points lead me to my main point, which is that the real issues I think the progressive movement has with the box stores, are almost equally applicable to Costco as they are to Wal-mart. (I'll mention them in a minute). That they aren't applied to Costco in the same way I think is some kind of political bias or just "fashion." The things I have against the box stores:
They are environmental disasters. In terms of the energy they consumer, they're heating cooling efficency, the traffic they promote and the dangerous run-off from their parking lots...these things were all well documented, for instance, in the stories about the Wal-mart store planned in Inglewood, CA that the voters defeated. But they apply equally to Costco.
The "squeezing" of suppliers. One poster mentioned this was good to keep costs cheap and employess well-paid...well, that's the strategy Wal-mart started out with. Costco forbids suppliers from offering a lower price to anyone else, or else Costco will never do business with them again (a tactic Wal-mart pioneered). While it may mean low prices to Costco consumers, and maybe even some protection for Costco workers, it often means horrible conditions for the workers of Costco's suppliers. I think it's important to look at the whole chain. Costco's suppliers are the same Chinese factories supplying Wal-mart with the same substandard conditions.
As far as the sex discrimination suit, it's being led by the same lawyer (Brad Seigelman) who is bringing the case against Wal-mart. It's pretty much the same progressive groups lined up to bring the case and the stories (if you do a google search) told by female managers sound remarkably similar to Wal-mart.
There are lots of alternatives to Costco AND Wal-mart. That's the only point I was trying to make. Shop locally. Find a local retailer, farmer's market, bakery, grocery etc. It takes more effort, but it's worth it in the end.
I apologize again, I didn't mean to sound mean :) And I don't know how not to be anonymous.. I can only enter my name (I don't have a web page).
Gak! Apologies also for all the typos. I don't know how to edit comments once they are up. Hopefully they aren't too distracting, it's late, I'm tired and I sometimes start typing more phonetically...or just completely nonsensically :)
Thanks very much for the info, Paulio. (And don't worry about typos, your comment was perfectly readable!)
You make many good points.
I have mixed feelings about encouraging people to shop locally. I myself try to patronize independent stores, especially in my own neighborhood, whenever possible.
Yet that is often a luxury only people with a decent income can afford. When I see articles in places (eg) like Utne urging people to buy organically grown strawberries at their farmer's market, I think, how nice for you. Most people can't afford to plunk down $3.89 for a pint of fruit.
It's like telling a stressed-out low-income single mom she needs to meditate and get massages. It's completely unrealistic.
I can't blame the average consumer for shopping based only on price and convenience. Life is hard. Shopping with a conscience is simply out of range for most people.
Now, I realize this is part of the whole cycle that big box stores take advantage of. But I don't know that I can in good conscience say to anyone else, Spend more money for the same item, because it's better for society as a whole.
I appreciate your returning to flesh out your ideas. If you want, you can register at Blogger without having a blog yourself. When you post your comment, there's an option for that. You don't have to, of course, but bloggers will take your comments more seriously if they are not anonymous. Thanks again.
Of course, once you get the ID, it's really tempting to have your own blog....
For what it's worth, Laura, if you're into that kind of thing, there is a large farmers market in downtown Toronto on Front Street, just about a seven or eight minute walk east of Union Station. It's called St. Lawrence Market. Place is full of history. At one time in the 19th century, the upper floor served as Toronto City Hall. Reputedly, during one meeting the floor gave way and several politicians wound up skewered on the meat hooks below. But, er, um... you know, don't let that stop you... it was a long time ago. :) Anyway, in Port Credit, you're on the Lakeshore GO line, and that runs on weekends, so you could visit the market from time to time without much trouble at all.
There's also Kensington, but you'd probably have to catch the street cars on King St. and Spadina Ave. to get there from St. Lawrence Market.
LP, I love markets. We visit them in every city or country we find ourselves in. I've heard of the St. Lawrence Market (from Toronto tourism info) but haven't been yet.
This story makes it extra cool! Sounds like a piece of old New York.
In the US, the best markets I've seen are Pike Place in Seattle (amazing place) and Philadelphia's Reading Terminal Market. There was talk of doing something similar at the World Trade Center site, but sadly, that seems to have faded away.
Anyway, in Port Credit, you're on the Lakeshore GO line, and that runs on weekends, so you could visit the market from time to time without much trouble at all.
That's exactly why we wanted to live in Port Credit! Not the market per se, but the train line and proximity to downtown.
There are also farmers' markets around town throughout the week - Riverdale Farm on Tuesdays, Nathan Phillips Square on Wednesdays, Mel Lastman Square on Thursdays, etc. St. Lawrence Market is certainly the king, though. Be sure to go upstairs and check out the historical exhibit.
I've often meant to read Nickel and Dimed and your comments were the final straw, so I went out and bought it this morning. Very interesting so far. You might also like Dispatches From the Poverty Line, by Pat Capponi (1997). It will give you the Toronto perspective on lifestyles of the desperately poor and mentally ill, written by one of their own.
Thanks, Marnie - I'll save the title. The Working Poor by David K Shipler is a good compliment to Nickled and Dimed, too.
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