Costco has reached a tentative agreement with its union, the Teamsters, just before the strike deadline. The agreement will be presented to union members for a vote.
Earlier this week, the company announced it would raise pay for non-union employees in the US to over $30 an hour, in a phased approach over three years. Entry-level workers will receive a 50-cent increase, starting at $20 per hour.
The move comes as the International Brotherhood of Teamsters union, representing over 18,000 Costco workers, threatened a nationwide strike if a new contract wasn’t reached by January 31. The pay increase does not apply to union members.
Costco’s CEO has announced that these increases will “far outpace others in the retail industry.” However, the company faces criticism from attorneys general of 19 states, who urged CEO Ron Vachris to end discriminatory diversity and inclusion practices.
Despite the controversy, Costco shareholders rejected a proposal to halt DEI practices in January. The company maintains its commitment to inclusion is based on merit, not quotas or preferences.
A tentative agreement between Costco and its union brings relief ahead of the strike deadline, with further details to be shared soon.
Source: https://www.foodandwine.com/costco-pay-increase-8783966