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Costco to raise minimum wage

Coscto Wholesale Corp. is giving its employees a boost as the battle to attract workers in a tight labor market intensifies.

The warehouse club giant on Friday said it will raise its minimum wage from $13 to $14, effective June 11. Company CEO Richard Galanti revealed the news in the chain’s quarterly earnings call with investors, saying about 130,000 employees will benefit from the hike. Others will see raises between 25 and 50 cents per hour when the new rate takes effect.

Galanti said the increase is expected to cost between $110 million and $120 million annually. However, due to the new GOP tax law, Costco expects a 7% drop in its tax rate.

Earlier this year, Walmart announced that it would raise starting wages for its hourly employees from $9 to $11. And in March, Target Corp. said it is raising its minimum hourly wage to $12 this year, starting with existing associates, with the move part of the retailer’s previously announced initiative to raise the minimum wage to at least $15 an hour by 2020.
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