Costco has announced that its non-union employees will receive significant pay raises, with the top-end hourly rate increasing by $1 per hour to $30.20 per hour. This increase is expected to benefit over 200,000 workers, and will be accompanied by additional benefits such as an extra week of vacation after 30 years.
The company’s decision comes ahead of a potential strike by its 18,000 unionized employees, who are set to go on strike if a new contract is not reached. However, the non-union employees’ pay increases may help attract top talent in the retail industry.
Costco’s move raises the bar for wages and benefits in the retail sector, where median hourly pay for retail salespersons is around $16 per hour. The company’s CEO Ron Vachris said that the pay increases will continue to “far outpace others” in the industry.
The decision may signal a willingness by Costco to meet the union’s demands, which could prevent a strike. However, labor relations attorney Jane Jacobs noted that strikes can be costly and unfair for all parties involved.
Source: https://www.forbes.com/sites/pamdanziger/2025/01/31/costco-grants-pay-raise-to-hourly-non-union-employees-leaving-18000-union-members-waiting