Retail giant Costco announced plans for a substantial wage increase for its US store employees, with top-scale workers set to earn over $30 per hour within the next three years.
According to an internal company memo, the pay raise will roll out gradually, starting with a $1 increase that brings top-tier worker wages to $30.20 per hour. Two additional $1 increases will follow in subsequent years. Entry-level employees will also see their hourly rates climb by 50 cents to $20.
The wage boost comes amid mounting pressure from the Teamsters union, which represents more than 18,000 Costco workers. Union members recently demonstrated their bargaining power by voting overwhelmingly to authorize a nationwide strike, with 85% supporting the action.
This move by Costco could spark changes across the retail sector, as companies compete to attract and retain workers in a challenging labor market. The wage increase reflects broader economic shifts, where businesses face growing pressure to offer more competitive compensation packages.
For Costco employees, the planned raises represent a concrete improvement in their earning potential. The phased implementation over three years provides workers with a clear timeline for wage growth while allowing the company to manage the financial impact of these increases.
The decision underscores the growing influence of organized labor in shaping corporate wage policies, as unions continue to advocate for better compensation and working conditions across various industries.