Costco Hikes Hourly Pay for Most Store Workers to Over $30
Retailer Costco Wholesale has announced that it will increase hourly pay for most fixed-wage U.S. store workers to over $30. The pay hike will be implemented in a phased approach over the next three years, with the starting hourly pay rising by $1 to $30.20 in the first year, followed by an additional $1 each in the subsequent two years.
The pay hike follows Costco’s contract talks with the Teamsters union, which represents over 18,000 Costco workers nationwide and has voted to authorize a nationwide strike for improved pay and perks. The final round of talks is ongoing to reach a new contract before the January 31 deadline.
According to a memo sent to employees, entry-level workers will also receive a 50-cent rise, bringing their starting wage to $20 per hour. In a statement, CEO Ron Vechir mentioned that Costco’s wages and benefits will continue to significantly exceed those offered by other retailers in the industry.
The company is still in talks with the Teamsters, who are demanding higher wages, enhanced benefits, and better workplace policies for employees. If the strike proceeds, it could impact Costco stores across multiple states, including New Jersey, New York, Virginia, and Washington.
In addition to the labor disputes, Costco is also facing other issues. Nineteen Republican attorneys general are demanding that the company discontinue its diversity, equity, and inclusion (DEI) programs, arguing that they violate Supreme Court decisions and are discriminatory. The company is also facing backlash from shareholders, with over 98% rejecting a request to evaluate the risks related to the company’s DEI policies.