By Connor Hart

Many of Costco Wholesale's employees in the U.S. are getting a raise.

The retailer raised by $1 the pay of its top-of-scale employees, with clerks now set to make to $31.90 per hour and assistants' to $30.20 starting in March, according to a memo sent to employees this week.

Those employees will receive an additional $1-per-hour raise in each of the following two years.

Additional compensation changes include increasing the pay for bottom-of-scale by 50 cents an hour, raising the supervisor premium to $2 from $1.50, and giving new employees vacation time during their first year with the company, according to the memo.

The raise comes after Costco Teamsters union members earlier this month authorized a strike if the retailer refused to agree to a new collective agreement. The Costco Teamsters National Master Agreement, covering more than 18,000 Costco workers, is set to expire Friday.

"With these changes, we believe our hourly wages and benefits will continue to far outpace others in the retail industry," Costco said in the memo signed by Chief Executive Ron Vachris.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

January 31, 2025 14:23 ET (19:23 GMT)

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