.
Feedback

Union Workers Jeer Sinegal at DNC

About a dozen conventiongoers held up union signs when the Costco CEO spoke at the Democratic National Convention.

Charlotte, NC -- When former Costco CEO Jim Sinegal addressed the Democratic Nation Convention on Wednesday night, about a dozen conventiongoers held up union signs and jeered him.* Patch caught up with one of them, Karl de Jong, who said he wants to take money out of politics:

What line of work are you in?

I am a union stage hand. The people who install the lighting and the video and the sound here.

Are you in Seattle?

I am in Seattle.

It sounds like you’re not too happy with Mr. Sinegal.

Mr. Sinegal and his corporate folks wanted to lock up the liquor industry that was established as a state industry in Washington, and thus have displaced public workers.

Union workers?

Yes that’s correct. And after an initiative which they spent millions of dollars on, the price has gone up.  It’s a bit of a bait and switch for the citizens of Washington. And with their return on investment, I cannot believe that their shareholders decided to spend so much money to chisel away the state liquor business.

Do you feel like he’s being dishonest?

I’m not gonna call the man a liar.

In previous generations, people who disagreed with the party might have been a bit louder.

(laughing) I don’t think I’m sitting here quietly.  I’m talking to you. I am holding a union sign that says “Good Jobs Now.”

I guess what I’m trying to say is you’re not out rioting in the street.

I work within the system.

* - CORRECTION - Sinegal was originally identified as the CEO. He formerly held that position, but still retains a seat on the Board of Directors.

Kris Robbs September 7, 2012 at 11:24 am
Does he know that the State Liquor board raised the taxes and this is the main reason the price is higher. Let's see... No rent, no salaries for the State and they still needed to raise the Liquor tax. Costco is not the reason liquor prices are up, it is our State.
dexterjibs September 7, 2012 at 11:49 am
No Shawn, he may not be rioting in the streets, but his fellow ilk are. As far as the higher liquor prices, anyone with an ounce of intellectual honesty knows why they are higher and it has nothing to do with Costco.
Amber Dodge September 7, 2012 at 12:40 pm
"Good jobs now"? Interesting to hold up that sign while Jim Sinegal is speaking. Considering he spoke about how many jobs Costco hopes to add to the US marketplace over the next year during that speech in addition to suggesting displaced state liquor employees apply for employment at Costco, I think Mr. Sinegal is doing his part to create good jobs now.
Renate Beedon September 7, 2012 at 01:00 pm
I agree - I believe Costco is a good thing for the economy and that they are not responsible for the taxes added to the liquor prices.
His speech was not very inspiring though, in my opinion.
Priya Sinha September 7, 2012 at 06:32 pm
Is Costco a union shop?
Kendall Watson (Editor) September 7, 2012 at 07:22 pm
Hi Priya,
Costco is primarily non-unionized, although some of their Price Club legacy stores were organized shops and remain so — mainly in California and on the East Coast. This is a small fraction of the overall Costco workforce.
Justin Evans September 11, 2012 at 10:42 am
Harvard Business Review did a study and showed that the average Costco Employee makes $17/hr. I would say that "Good Jobs Now" is the business model that Costco is based on. On top of the $17/hr, they still have GREAT benefit packages. (findthedata.com) shows that the average Washington State Liquor Store Employee earned $23.17 / hr. ($48,193.60 yr) Which as a tax payer is ridiculous to think that someone who is doing the same thing as an employee of Safeway / Target / Wal-Mart / Etc... The average wage of a Wal-Mart employee is $10.11 (again, according to the Harvard Business Review). The Washington State liquor store employee was making (or costing us tax payers) over $13/hr MORE than the average checker at any other store. I'd like to THANK Costco for helping save this state money in over inflated salaries. Nothing against trying to make as much as you can, but when a person who sells liquor is making more than the average teacher just starting out ($35,018 - according to the National Education Assoc.) something had to be done.
Priya Sinha September 11, 2012 at 12:54 pm
I believe, if Costco were unionized, they would be part of the UCFW. I wonder what the comparisons are to workers who are part of UCFW. Then I wonder, how many of the Washington State Liquor Employees were absorbed into the labor market and of those absorbed, how many received comparable pay (on the paycheck and in terms of benefits). This is a small set of people. We should be able to find those numbers readily. And, then we can talk about what was the impact on quality of life
Kendall Watson (Editor) September 11, 2012 at 01:34 pm
Great Points, Justin and Priya. A minor quibble/request for clarification: Is the average starting salary for a teacher the national average? If so, then that would be comparing apples to oranges, as Washington state generally has a higher standard of living (i.e costs more to live here than the "average" US state) and you're comparing a state-specific income to a national one.
Priya Sinha September 11, 2012 at 04:21 pm
Kendall. Exactly. Those were the issues my questions meant to pull at.
Christie Anderson September 11, 2012 at 11:29 pm
It is my opinion that if Costco were unionized, I'd be paying more for products. :-)
Priya Sinha September 12, 2012 at 10:47 am
Chris,
Topps, Fred Myers, PCC and I believe QFC are all union shops. The price range on those markets vary. For example, I usually shop at Topp or Fred Myers. The prices are reasonable. In my opinion PCC and QFC are very expensive. All Union shops. Additionally, if you live in Edmonds, like me, you may shop at Petosas. Petosa is not a Union Shop but, the prices are higher compared to Topp and Fred Meyers. Respectfully, your opinion is based on bias not on fact.
Kirkland Tony September 12, 2012 at 11:30 am
Top Foods is Haggen, and QFC is a part of Fred Meyer. They are unionized but vary by target market - i.e. service level. There is no dispute that unionized shops cost more, and result in higher prices than, non-union shops. This is true in the auto industry and in the education industry too. It wasn't Chris who based statements on bias, but rather you.
Let's look at some indisputable fact. The stores you named are considered expensive, except for Top Foods (which you misspelled.) Fred Meyer is expensive for the rather low quality. Meanwhile, Costco, Walmart and Target are considered inexpensive or high-value. And those three chains are not unionized. Quoting back to you, "Respectfully, your opinion is based on bias not on fact."
Justin Evans September 12, 2012 at 11:32 am
The #'s were the starting wages for Washington teachers as I was comparing them to the Washington State Liquor Store Clerks. The NEA (National Education Assoc.) reports the average starting salary for a teacher, nation wide, is $34,935, or $16.79 / HR on a standard 40 hour work week for 52 weeks.
Priya Sinha September 12, 2012 at 12:55 pm
Kirkland,
Thank your for pointing out my misspelling. I have friends working at Top and Fred Meyer. I know those are unionized shops. And, we can argue about quality of service there. That is subjective evaluation. Personally, I think service is fine. "Let's look at some indisputable fact. The stores you named are considered expensive, except for Top Foods (which you misspelled.) Fred Meyer is expensive for the rather low quality. Meanwhile, Costco, Walmart and Target are considered inexpensive or high-value." Is it just that YOU believe those fact that make then indisputable? I don't agree with that statement at all consequently, and logically, they are disputable.
Kirkland Tony September 12, 2012 at 01:46 pm
Just because you personally dispute something doesn't really make it disputable. Some people still don't believe the Earth is round either; that doesn't make it rationally disputable. Likewise, there is no rational dispute that Target, Walmart and Costco are considered the low-price (or high-value) stores. Just for kicks, though, I did a quick google... and found several comparison shopping surveys showing that Walmart and Winco are far below Fred Meyer, which sometimes beats Albertsons. Target and Costco often weren't in the surveys, but was 32% lower than Albertons/Safeway in the Seattle Times survey for items both carried, per unit price. The Seattle Times marked QFC as more expensive than even Fred Meyer but with very high customer satisfaction numbers.
The only reason I even chimed in is that you told Chris his opinion was biased and not based on fact. In your response to me, it seems a bit of Pot meets Kettle. I perceive - it could be wrong - but I perceive you have an affinity for unions. Do you? If so, why?
bigyaz September 12, 2012 at 02:59 pm
Of all the companies to be protesting for regarding "Good Jobs Now" Costco is a questionable choice. It has consistently paid wages significantly higher than its competitors (much to the disapproval of Wall Street) and has extremely high employee satisfaction rates.
Voters decided it was time to end the state liquor monopoly. I feel for those who lost jobs (although I know many found comparable work at retail establishments, including Costco), but this was the right decisions.
Kendall Watson (Editor) September 12, 2012 at 03:17 pm
@Bigyaz - Also a good point. Even the Teamsters in Canada acknowledge this (in that quirky, unfailingly polite Canadian way), where they are presently trying to organize in Costco stores: http://www.unionizecostco.com/index_files/Page266.htm
And voters did finally approve deregulation of liquor sales last year after several failed initiatives. In my opinion, Costco's lawyers learned from the failed I-1100 in 2010 and wrote into the law a special dedicated tax for public safety in the passed initiative, which seems to have peeled off enough votes to pass it.
Kendall Watson (Editor) September 12, 2012 at 03:19 pm
Funny thing is, many news outlets have reported that the tax is apparently making liquor more expensive to consumers than prior to I-1183, but that's another discussion.
Jerry Gropp Architect AIA September 12, 2012 at 04:18 pm
.
All this brings me back to my first job- at a brand new Wallingford Safeway. Joining the Retail Clerks Union under Dave Beck then was not an option. J-
Kirkland Tony September 12, 2012 at 04:43 pm
Kendall, one GREAT thing about the liquor change is that even though prices may be up a bit, selection is up a lot. I don't buy the cheap stuff anyhow, and while the stuff I enjoy is expensive per bottle, it takes a long time to go through a bottle. But the state liquor stores didn't stock a good selection of it because of mandatory minimum sell-rates on anything they carried. Since that's gone, I can get good whiskeys at some nice markets.
Tony Dondero September 12, 2012 at 06:30 pm
Another side-effect of the liquor law is the shoplifting of liquor at grocery and big box stores, which is keeping police and asset protection teams busy. The police blotters the last few months have had at four or five incidents a week it seems.
Kendall Watson (Editor) September 12, 2012 at 06:41 pm
Yes, this has happened on Mercer Island too! I've had several blotter entries with subheds like this "Liquor Thieves Strike Albertons Again" and "Champagne Shoplifters Take Another Case From QFC". More than a dozen of these over the summer in the MIPD blotter.
Kirkland Tony September 12, 2012 at 07:24 pm
The northwest is bizarrely soft on criminals and hard on businesses, in my opinion.
Kendall Watson (Editor) September 12, 2012 at 07:33 pm
The Northwest is "soft on crime"? What about the Three Strikes Law? Washington State voters passed it in 1993 — the first in the nation.
Kirkland Tony September 12, 2012 at 10:33 pm
Kendall, three strikes doesn't matter if you aren't arresting and imprisoning them in the first place. In 2010, Seattle was 13th in the nation for car theft, for example. Even the SPD's own quarterly report shows that Seattle is something like 10% higher in property crimes than "comparable size" cities. Bellevue and Kirkland are much safer. Tacoma is much more dangerous. Exactly what you probably expect. There are some great websites for crime stats by city and even neighborhood.
The Seattle area used to be pretty low for violent crime, but 2012 started with a lot of shootings that may skew that.

Newsletter & Alerts

Get the best stories each day and important breaking news

Subscribe

Not from Bellevue Patch? Find your Local Patch »

Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors. Write a new post... What's up? Make an announcement, speak your mind, or sell something
Venice Buhain (Editor) June 14, 2013 at 12:38 pm
Thanks for sharing, Ashley! I think there's a post on our Garage Sale map for another address in theRead More China Creek neighborhood, but feel free to add yours: http://bellevue.patch.com/groups/weekend-planner/p/upcoming-garage-sales-in-bellevue-map
Aging Resource Alliance seminar next week.
Paul Zohav M.Ed. May 30, 2013 at 01:33 pm
Mercerwood Shore Club Address: 4150 E Mercer Way, Mercer Island, WA 98040 Phone:(206) 232-1622
Paul Zohav M.Ed. May 30, 2013 at 01:35 pm
10am - 12 pm
Joe & Helen Hesketh June 2, 2013 at 10:00 pm
Paul, Trying to find the flyer mentioned in the post. How can we get one? Thanks Joe & Helen