Costco Wholesale is reportedly planning to hike pay for most of its US workers to over $30 an hour after union members threatened to strike.
The retailer will boost pay for its top store employees over the next three years – increasing wages by $1 to $30.20 an hour in the first year and an extra dollar in each of the next two years, according to a memo sent to Costco staff this week.
Costco’s promised pay hike also includes an increase of 50 cents, to $20 an hour, for low-scale employees, according to the memo.
“With these changes, we believe our hourly wages and benefits will continue to far outpace others in the retail industry,” the company said in the memo, which was signed by CEO Ron Vachris.
Earlier this month, Costco Teamsters union members said they voted in favor of a nationwide strike as talks to reach a new contract stalled ahead of a deadline ending Friday.
“From day one, we’ve told Costco that our members won’t work a day past January 31 without a historic, industry-leading agreement,” Teamsters General President Sean O’Brien said in a statement. “If they refuse, they’ll have no one to blame but themselves when our members go on strike.”
The union, which represents more than 18,000 Costco workers, said 85% of its members voted to authorize a strike.
Teamsters leaders accused Costco of refusing to share its record $7.4 billion in annual profits in 2024 with workers, and staffers have complained about inadequate pay, benefits, seniority rights and paid leave policies.
Costco did not immediately respond to a request for comment.
The union represents Costco members in New York, New Jersey, California, Maryland and Washington.
Earlier this month, Costco Teamsters organized practice pickets in Hayward, Calif. and Sumner, Wash., as well as a rally at a Westbury Costco on Long Island.
The strike would hit less than 10% of Costco locations in the US, the retailer has said.
With Post wires
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