Statement by Costco Wholesale Corporation CEO, Jim Sinegal, Regarding Class Action Certification
ISSAQUAH, WA -- (MARKET WIRE) -- January 12, 2007 -- Costco Wholesale Corporation ("Costco")
(NASDAQ: COST) CEO, Jim Sinegal, today issued the following comments in
response to the news that Judge Marilyn Hall Patel, US District Judge in
San Francisco, had certified the Ellis vs. Costco case as a class action.
"We were disappointed by Judge Patel's decision to certify this case as a
class action. Since we believe in standing up for our principles when we
have done nothing wrong, we will continue to defend ourselves against these
claims. As Judge Patel's Order makes clear, it would be improper of the
Court to delve into the merits of the claim at the class certification
stage. We remain optimistic that after a trial on the merits, we will
prevail.
"Costco has a well-deserved reputation for fairness to our employees. For
more than twenty years, we have been recognized as an enlightened employer
that looks out for the best interests of its employees when it comes to
pay, benefits, promotions, and fair and open treatment. We believe in the
open door policy that encourages all of our employees to seek immediate
redress for any grievance. These policies apply to all of our employees
without regard to gender, race, ethnicity or any other factor. When it
comes to promotions, the only relevant factor is merit demonstrated through
years of service to the company. We firmly believe in promoting the most
qualified woman or man in every instance. Those who merit a promotion
through their diligence, hard work, flexibility, and perseverance, have
always done well in our company. This is an essential two-way street for
our employees and us. We are dependent for our success and growth on the
growth and development of our people. They are our most important assets.
It would be self-defeating and nonsensical for us to allow for
discrimination in a way that deprives any of our people of an opportunity
for advancement, and we do not tolerate any such discrimination. That is
why merit is the only measure we have ever used in promotions and why we
have more than 250 female General Managers and Assistant General Managers
running Costco warehouses in the U.S. today. Our steadfast insistence on
merit-based promotions from within the company has also resulted in many
women being appointed to warehouse management positions in other countries
where we operate, including some countries in Asia and Latin America where
such diversity is not common nor legally required.
"Since this case was filed, literally hundreds of current and former female
warehouse employees have volunteered to testify in our defense. Many of
them have asked for the opportunity to tell their career stories to Costco.
They report that they have been treated fairly. It is obvious that there
are more men than women in certain warehouse management positions, but
statistics cited out of context do not always tell the whole story. We look
forward to the opportunity to tell the whole story in the proper forum and
at the right time. At the same time, we respect the rights of any current
or former employee who disagrees with us, and therefore take this
opportunity to reiterate that the company will never retaliate against
anyone who participates in the legal process.
"We normally do not comment on pending litigation. We are departing from
that rule in this instance because we feel it is important to reiterate our
guiding principles to all of our stakeholders."