Costco faces employee backlash over new member benefit | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

There’s a reason people are willing to spend money on a Costco membership when they can shop at just about any other store without having to pay to walk in the door.

Costco is known not just for its ultra-low prices, but also for its outstanding customer service. And that’s something consumers are willing to pay for.

Most retailers, for example, give you somewhere in the ballpark of a 30-day window to bring items back for a refund. At Costco, with few exceptions, you can return any item at any time without a hassle — even products you purchased a year ago.

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Costco also keeps close tabs on its inventory to make sure the items it stocks are high in quality.

You won’t find nearly the same selection of products at Costco as you will at your local Target or Walmart. In exchange, though, as a member, you can feel more confident in your purchases, given Costco’s very high standards.

Costco faces employee backlash over a new member benefit.

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Costco introduces new perk for Executive members

Costco offers two membership tiers — Gold Star and Executive. A Gold Star membership is Costco’s basic offering and costs $65 per year, while the Executive membership costs $130.

But there’s a reason so many Costco shoppers choose to upgrade to the Executive membership tier, despite it costing double.

The more expensive membership gives you 2% back on your Costco purchases, which means if you shop at the store often enough (and spend enough), your membership could actually pay for itself.

Plus, Costco recently sweetened the deal for Executive members by re-introducing early store hours.

Years back, Costco would open its doors 30 minutes early for Executive members. The company did away with that benefit for a pretty lengthy period of time before bringing early shopping hours back in late June.

Now, Executive members have a prime opportunity to shop ahead of the crowds.

New Costco perk is bad for employees

While Executive members may be thrilled with Costco’s latest benefit, store employees feel very differently. In fact, a number of Costco employees took to Reddit to complain about the change.

“I can imagine it’s going to be fun every morning in merchandising. I’m assuming there will be no adjustments to schedules or depot times. Just get it done in less time,” one user wrote.

“Corporate announcing this with 3 weeks notice, while in the middle of a hiring freeze, AND severely cutting hours? Costco is not the same company it once was,” said another.

Other Costco employees expressed concern that non-Executive members would try to get around the rules and sneak in early, causing even more stress and chaos.

This isn’t the only backlash Costco has received from workers lately.

The warehouse club giant was recently accused of withholding pay from union drivers in Washington State. If that issue doesn’t get resolved, Costco could have a huge revolt on its hands, which could, in turn, have a major impact on shoppers.

Similarly, if too many store employees find themselves stressed and miserable over the change to Executive member hours, Costco could end up with a massive worker exodus on its hands.

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For a company that prides itself on an outstanding customer experience, that could be nothing short of a nightmare. And if staffing issues really come to a head, Costco may need to rethink its new Executive membership perk – even if it means disappointing millions of consumers.

Maurie Backman owns shares of Costco.