Walmart vs Costco, Vons, and Ralphs

This interesting column by economics writer Holly Sklar points out that Walmart's business model squeezes employees with low wages and few benefits, while Costco starts employees at $11/hour (although most employees earn much more), and provides decent benefits. Costco has a unionized workforce, yet its prices are comparable to Walmart.  

Sklar points out that Walmart CEO Michael Duke made $23.2 million a year His $63,562 a day is more than many small business owners make in a year.

She quotes a professor from the MIT Sloan School of Management: "Even in the lowest-price segment of retail, bad jobs are not a cost-driven necessity but a choice."

That's the choice Walmart has made.

Employees at Vons and Ralphs get paid a living wage, have decent health care and vacation benefits, and have a collective bargaining agreement.