Costco raises hourly wages amid Teamsters negotiationsCostco raises hourly wages amid Teamsters negotiations

Costco Wholesale is raising wages for hourly employees to more than $30 per hour for most store workers, according to reports. The move comes as the company faces calls for a nationwide strike by the International Brotherhood of Teamsters, which represents about 18,000 Costco workers in five states, or about 8% of its total U.S. workforce. A spokesperson for Issaquah, Wash.-based Costco could not be reached for comment.

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Teamsters members just days ago voted to authorize a strike, rejecting proposals from the company that the union said did not adequately reflect Costco’s record profitability last year. The strike was slated to begin as soon as Saturday, one day after the contract was scheduled to expire.

A spokesperson for the Teamsters told Supermarket News that the union had resumed bargaining with Costco on Thursday after the previous round of talks ended without an agreement. In addition to wage increases, the union is also seeking improvements to retirement benefits, seniority pay, paid family leave, bereavement policies, and safeguards against surveillance.

By the numbers

• Costco is increasing the hourly wages for its top nonunion employees by $1 per hour each year for the next three years, according to a memo obtained by Reuters. Pay would increase to $30.20 per hour in the first year

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• The lowest scale of workers would receive an increase of 50 cents per hour, to $20, according to Reuters

• In fiscal 2024, Costco reported a 17% increase in net income, to about $7.4 billion, compared to the preceding year; sales increased 5%, to $249.6 billion

• Costco also reported that its selling, general, and administrative expenses increased six basis points in fiscal 2024, which it attributed in part to wage increases effective in 2023 and 2024

In their own words

“Don’t be fooled by Costco’s fake generosity. There are still 18,000 unionized workers who know their worth and are demanding it.” — Matt McQuaid, spokesman, Teamsters Department of Strategic Initiatives