Retailer Costco Wholesale has announced it will hike hourly pay for most fixed-wage U.S. store workers to more than $30.
Hourly pay for top-tier employees will be increased by the company in a phased approach over the upcoming three years with the pay rising by $1 to $30.20 in the first year.
It will be followed by an additional $1 each in the subsequent two years, Reuters reported, citing a memo sent to the employees.
The pay hike follows Costco’s contract talks with the Teamsters union, which represents over 18,000 Costco workers nationwide and voted to authorize a nationwide strike for improved pay and perks. The final round of talks is ongoing to reach a new contract before the Jan. 31 deadline.
The memo, which was circulating on social media, indicates that entry-level workers will also get a 50-cent rise, bringing their starting wage to $20 per hour, the memo showed.
CEO Ron Vachris emphasized that Costco’s wages and benefits “will continue to significantly exceed those offered by other retailers in the industry.”
Costco and Teamsters are still in talks. The Teamsters want higher wages, enhanced benefits and better workplace policies for employees.
Costco contends that the proposal fails to adequately reflect Costco’s financial success in recent years. If the strike proceeds, it could impact Costco stores across multiple states, including New Jersey, New York, Virginia, and Washington.
Costco is also facing other issues.
Nineteen Republican attorneys general are demanding that its diversity, equity, and inclusion (DEI) programs be discontinued. They argued that these actions violate Supreme Court decisions and are discriminatory.
The attorneys general have asked Costco to either end its DEI programs within 30 days or give an explanation for keeping them in place.
Source : https://www.ibtimes.com/costco-boosts-hourly-pay-over-30-amid-union-tussle-dei-backlash-3761809
