The Costco Wholesale Corporation and the Teamsters union have reached a tentative agreement to avert a worker strike, according to the union.
“Additional details will be shared soon. The tentative agreement will be presented to the membership for a vote. Stay tuned,” the union press statement read.
The Epoch Times reached out to both the Teamsters and Costco for details on the deal, but neither side responded by press time.
With the worker strikes looming, Costco announced steps this week to boost wages for its employees. According to an internal memo shared by Costco CEO Ron Vachris, the pay raise would see wages for employees at the top of the pay scale rise increase by $1 per hour each year for the next three years.
Starting this March, top clerks would receive $31.90 per hour. In March of 2026, their wages would rise to $32.90 per hour, and then $33.90 per hour in March of 2027. Likewise, top assistants would receive $30.20 per hour this March, $31.20 per hour in March 2026, and $32.20 per hour in March 2027.
Under the revised contracts, employees at the bottom of the scale would receive a 50-cent per hour raise, bringing the lowest-paid clerks to $21 per hour, and the lowest-paid assistants to $20 per hour.
In addition to the pay increase, Costco also agreed to increase vacation time for its employees, granting an additional week of leave for workers with 30 years of employment, as well as vacation for employees in their first year with the company.
In the memo, Vachris noted these new raises follow what he described as an “unscheduled” $1 per hour wage increase in July 2024.
Costco also raised its membership fees for the first time in seven years in July, increasing annual dues between $5 and $10 for Costco members.
“The three-year successive $1.00/hour top-of-scale increases are greater than we’ve done in any Employee Agreement,” Vachris wrote. “With these changes, we believe our hourly wages and benefits will continue to far outpace others in the retail industry.”
