ISSAQUAH, Wash. — This story was originally published on MyNorthwest.com.
Costco workers will have some extra money to spend this spring.
The company announced this week it is raising its hourly wages for employees at the top of the pay scale to $30.20/hr and workers at the bottom of the scale to $20/hr in March, according to The Seattle Times, citing a memo to staff attained by Bloomberg News.
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Additionally, employees at the top of the pay scale will receive another $1 per year for the next two years, the media outlet reported. According to Forbes, more than half of the company’s employees are at the top of its pay scale due to low turnover rates.
“With these changes, we believe our hourly wages and benefits will continue to far outpace others in the retail industry,” Costco CEO Ron Vachris wrote in the memo, as reported by Forbes.
Forbes also reported additional benefits will also be given: including an extra week of vacation after 30 years and vacation for new workers in their first year.
However, The Seattle Times stated, the raises will be given to employees at non-union locations. The media outlet added that Costco declined its request for comment.
“Costco has long been the retail employer of choice because of its industry-leading wages and benefits,” Pam Danziger, senior contributor at Forbes, wrote Friday. “This move will raise Costco a couple of notches higher and attract those seeking a retail career, rather than just using a retail job as a stepping stone.”
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Costco employees could go on strike
The announcement of raises comes at the heels of an employee strike. According to The Associated Press, Teamsters members at Costco voted overwhelmingly in favor of a strike if a new three-year contract agreement wasn’t reached by midnight Friday, when the current contract expires.
The Teamsters Union represents 18,000 Costco workers in six states: California, Washington, Maryland, Virginia, New Jersey and New York.
Contributing: The Associated Press
Julia Dallas is a content editor at MyNorthwest. You can read her stories here. Follow Julia on X here and email her here.