Costco Raises Pay for Workers, Negotiations with Union Continue Amid Potential Strike

Costco Raises Pay for Workers, Negotiations with Union Continue

Costco is raising its pay for hundreds of thousands of workers, with clerks at the top of the retailer's pay scale set to make almost $32 an hour in March. This move continues Costco's strategy of staying ahead of the competition in terms of worker compensation.

The Issaquah, Washington-based retailer will pay top-of-the-scale clerks $31.90 an hour and top-of-the-scale assistants $30.20 an hour, starting in March. The latest version of a three-year employee agreement calls for two additional $1 hourly increases in March 2026 and March 2027. Bottom-of-scale clerks and assistants are getting 50-cent hourly increases, making $21 and $20 per hour, respectively.

The company is also adding vacation time for new employees during their first year, and giving workers with 30 years of employment an additional week of time off, providing six weeks in all.

Meanwhile, negotiations continue between Costco and the union representing thousands of its workers. The current agreement is set to expire on Friday at midnight, and Costco Teamsters have voted to authorize a strike.

California, Maryland, New Jersey, New York, Virginia and Washington. Union members say Costco needs to offer a labor contract that reflects its sales and profit growth. The company's revenue rose 5% to $254 billion in its most recent fiscal year, which ended Sept. 1. It reported net income of $7.3 billion, double its profit in 2019.

respect the workers who made them a success or face a national strike," Teamsters General President Sean O'Brien said in a statement. "Costco Teamsters deserve an industry-leading contract that reflects the company's massive profits. If Costco thinks they can exploit our members while raking in billions, we'll shut them down."

Costco told the Associated Press in a statement that it has long had a good relationship with the union and is negotiating in good faith.

"We have always treated our employees fairly and well throughout the history of our company," Costco said.

It's unclear if the strikes would close stores. Costco, which operates 897 warehouses, including 617 in the U.S. and Puerto Rico, did not immediately respond to a request for comment.