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- Costco clerks will soon make up to nearly $32 an hour (newsbreak.com)
Costco is boosting pay for hundreds of thousands of employees, with top-tier clerks expected to earn nearly $32 an hour by March. The wage increases, ranging from 50 cents to a dollar per hour, are part of Costco’s ongoing effort to offer competitive compensation. President and CEO Ron Vachris stated the company believes its wages and benefits will remain significantly higher than other retailers.
Starting in March, top-of-scale clerks will earn $31.90 an hour, while top assistants will make $30.20. Further $1 hourly raises are planned for March 2026 and March 2027.
Entry-level clerks and assistants will see their hourly rates rise to $21 and $20, respectively. Costco is also increasing vacation time for newer employees and granting an extra week of vacation to 30-year veterans, bringing their total to six weeks.
Meanwhile, contract negotiations continue between Costco and the Teamsters union, which represents 18,000 Costco workers in six states. The current contract expires at midnight on Friday.
Teamsters members have voted to authorize a strike, demanding a contract that reflects Costco’s strong financial performance. The union cited Costco’s 5% revenue growth to $254 billion and doubled profits since 2019.
Teamsters General President Sean O’Brien warned Costco to respect its workers or face a nationwide strike. He emphasized that Costco Teamsters deserve a top-tier contract that mirrors the company’s substantial profits.
Costco responded by stating it values its long-standing positive relationship with the union and is negotiating in good faith, emphasizing its history of fair treatment of employees. It remains uncertain whether potential strikes would lead to store closures.
Costco employs approximately 272,000 people across the US and Canada, with the majority working in warehouses and distribution. The company credits its compensation and benefits for its high employee retention rate, reported at about 93% last year for employees with at least one year of service. This follows a July 2024 starting wage increase to $19.50 and other adjustments to bring the average hourly rate to $31 by the end of 2024.
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- Costco clerks will soon make up to nearly $32 an hour (newsbreak.com)