Costco to Pay Most Workers Over $30 an Hour After Dramatic Raise

Costco Wholesale announced that they would be increasing pay for the majority of the retailer's hourly workers to over $30 per hour, according to a memo sent out to employees.

The retailer announced that it would be increasing pay for top-of-the-scale employees over the course of the next three years, with hourly pay initially rising by $1 to $30.20 within the first year and an additional $1 each in the following two years.

Last week, the Costco Teamsters labor union voted to authorize a strike by an 85% margin if their dispute regarding fair wages was not resolved with the company, reported Reuters. The strike was set to begin on February 1.

The Costco Teamsters National Master Agreement, which represents more than 18,000 company employees, was set to expire on January 31.

In its first quarter ending on November 24, Costco saw a 7.5% increase in net sales, earning a total revenue of $60.99 billion. This allowed for the retailer to bolster same-store sales by 7.1%. Furthermore, for the fiscal year 2024, the company experienced a 5% increase from the previous fiscal year, earning a reported $249.6 billion from net sales.

"Our members have spoken loud and clear — Costco must deliver a fair contract, or they'll be held accountable," said Teamsters General President Sean M. O'Brien. "From day one, we've told Costco that our members won't work a day past January 31 without a historic, industry-leading agreement."

The memo further announced that bottom-of-scale employees would also receive a pay increase of 50 cents, bringing their hourly wage up to $20.

"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 signed by CEO Ron Vachris.