Investing.com-- Costco Wholesale Corp (NASDAQ:COST) is set to increase wages for most of its hourly U.S. workers to over $30 per hour, according to multiple reports citing a memo sent to employees this week, as the company continues negotiations with unionized employees ahead of a looming contract deadline.
The pay increase will take effect gradually over the next three years, with hourly wages for top-scale workers rising by $1 in March to $30.20, followed by two additional $1 increases in subsequent years, multiple reports confirmed.
The memo was also seen circulating on the social media platform X, but no official announcement by the company has been made yet.
Entry-level workers will also receive a 50-cent raise, bringing their starting wage to $20 per hour, the memo showed.
The wage hikes come amid contract talks with the Teamsters union, which represents over 18,000 Costco workers nationwide. The union had previously voted to authorize a strike, with 85% of its members in favor, citing demands for improved pay and benefits. The current collective bargaining agreement expires on Jan. 31.
CEO Ron Vachris stated in the memo that Costco’s wages and benefits “will continue to far outpace others in the retail industry.”