The nearly 300,000 people in the US and Canada who call Costco their employer are getting a raise. According to a memo sent to employees last week, the warehouse retailer announced that most of its hourly workers would be getting a pay boost, with top clerks and assistants making almost $32 an hour, plus $1 increases yearly for two years after that, reports Reuters. The memo notes that clerks and assistants on the lower end of the pay ladder will see a 50-cent raise, to $20 or $21 per hour, per CBS News.
Employees will also get more vacation time, with newbies now earning paid time off during their first year of employment, while veteran workers with three decades or more of Costco employment under their belt get an extra week, for a total of six weeks off. The changes will take effect in March. "We believe our hourly wages and benefits will continue to far outpace others in the retail industry," CEO Ron Vachris said in the notice.
News of the pay raises comes after the Teamsters said a strike was averted due to a tentative agreement reached with the retailer. A union spokesperson tells NPR that the wage increases wouldn't have come without the union, which represents workers in six states, putting the squeeze on the company. "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," says Matthew McQuaid. NPR notes that Costco wages are "among the highest in retail, which has helped Costco maintain a lower turnover rate than most rivals." (More Costco stories.)
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