• Costco to raise hourly pay for many employees to over $30 as negotiations with unionized workers continue.
• Non-union employees will see hourly wages increase to $30.20, with an additional $1 raise in each of the next two years.
• Over 18,000 unionized employees are pushing for higher wages and benefits amid a looming strike deadline.

Costco Wholesale is set to increase hourly pay for non-union employees, raising it above $30 per hour as unionized workers prepare for a potential strike. According to an internal memo from CEO Ron Vachris, top-of-the-scale clerks will earn $30.20 beginning in March, with planned increases of $1 each year for the next two years. For those starting at the bottom, pay will also rise by $0.50, bringing their hourly wage to $20. This pay increase comes just as negotiations with the International Brotherhood of Teamsters, representing approximately 18,000 Costco workers across six states, intensify, with their current contract set to expire at midnight on January 31.

In recent months, Costco has experienced a revenue rise of 5% to $254 billion, and with a net income of $7.36 billion—double the profit from 2019—union members argue they deserve compensation that reflects the company’s financial success. A strong vote in favor of a strike has been authorized by the Teamsters union if a new contract is not reached. According to union spokesperson Matthew McQuaid, the pay raises for non-union employees have been influenced by the union’s pressure.

"Costco is still shorting their workers because nonunion workers lack the retirement security of a defined benefit pension plan and the job protections that come with a union contract," he said. Costco's latest pay adjustments signal its ongoing commitment to offering competitive wages in the retail industry, a strategy that has led to their high employee retention rate. This increase further cements Costco’s position as a leading employer in the retail sector, with most workers appreciating the significant wage benefits and vacation time now offered to new employees during their first year.

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