Costco Wholesale will raise wages for most of its hourly U.S. store workers to over $30, according to a memo sent to employees this week. Top-tier employees will see a $1 increase to $30.20 in the first year, with another $1 added each of the next two years, per the memo cited by Reuters.

The pay hike follows a vote by Costco Teamsters union members in favor of a nationwide strike as they negotiate a new contract ahead of the January 31 deadline.

The Costco Teamsters union, which represents over 18,000 workers, previously stated that 85% of its members voted to approve a strike.

According to the memo, entry-level employees will also receive a pay increase, with wages rising by 50 cents to $20 per hour.

 

In a company memo CEO Ron Vachris said “With these changes, we believe our hourly wages and benefits will continue to far outpace others in the retail industry.

“There’s a plain and simple reason Costco chooses to offer industry-leading wages” and various benefits, the memo said. “We believe our employees are the very best in the retail industry.”

Costco Wholesale Corporation is one of the largest retail chains in the world, known for its membership-based warehouse club model. Founded in 1983 in Seattle, Washington, Costco has grown into a global retail giant with hundreds of locations across the United States and internationally.

Costco operates on a high-volume, low-margin business strategy, offering a wide range of products, including groceries, electronics, appliances, clothing, and household essentials. The company is recognized for its competitive pricing, bulk packaging, and exclusive Kirkland Signature private-label brand.