Tilly on Costco’s Labor Policy
Urban Planning chair Chris Tilly appeared on Yahoo Finance Live to discuss Costco’s labor policy and the impact of the Teamsters Union reaching a contract with the big-box retailer. Tilly was asked about the increasing pressure on Costco as some competitors raise employee benefits — and prices — to try to be more competitive. “I think that there’s two sources of pressure. One is, in fact, that competitor pressure,” Tilly said. “Nonetheless, there’s also a source of pressure because as inflation goes up, workers’ expenses go up. And Costco has to keep pace with that.” As an example, Tilly explained that, during negotiations, Costco offered a settlement that workers turned down in August, threatening to go on strike. “And so I think that’s the other source of pressure. And that’s going to continue, both because inflation is continuing and because right now the worker shortage is continuing.”
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