Costco reaches deal with union after hiking nonunion pay to over $30 an hour

Days after boosting its top wages to more than $30 an hour for most nonunion U.S. store employees, Costco Warehouse reached an agreement with its union workers, the Teamsters said Saturday.

The Teamsters contract expired at midnight, but hours later the union said on X that its negotiators reached a tentative deal with the company. Teamsters spokesman Matt McQuaid confirmed to The Washington Post that a deal has been negotiated, averting a strike. Details of the agreement, which will be presented to union members for a vote, were not immediately available.

Costco Teamsters represent 18,000 workers across six states — only about 8 percent of its workforce. But the rest of Costco’s hourly employees got a raise this week.

Starting in March, workers at the top of the pay scale will receive a $1 per hour raise to $30.20, followed by additional $1 raises each year for two years. Employees on the low end of the scale will receive a 50-cent raise, making their hourly wage $20. Multiple Costco employees who spoke to The Post confirmed the memo, whose contents were first reported by Bloomberg News.

Teamsters members at 56 stores had voted earlier this month to authorize a strike if the parties could not agree on a deal. Costco has more than 600 locations.

Under the old contract, Costco Teamsters earn hourly wages of $17.50 to $32.65, depending on their job and experience. The union sought increased wages and benefits, including more seniority pay, sick time, paid family leave, bereavement policies and protections against surveillance.

Costco is known as one of the higher paying employers in retail. Walmart associates make on average $17.50 an hour. Amazon warehouse employees make on average a base wage of $22 an hour.

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In an email to The Post on Friday, before the deal was reached, McQuaid called the nonunion raise “fake generosity.”

“Don’t forget Costco wouldn’t even be entertaining this increase if not for the immense pressure the Teamsters are putting on them to respect their employees,” he said. “Despite this, Costco is still shorting their workers because nonunion workers lack the retirement security of a defined benefit pension plan and the job protections that come with a union contract.”

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