Costco Wage Increase and Union Negotiations

SOURCE www.npr.org
Costco is raising pay for workers, including nonunionized employees, with hourly wages at the top of the pay scale set to go up to $30.20 an hour. The company is facing negotiations with the International Brotherhood of Teamsters, with a strike authorized if a new contract is not reached by the deadline.

Key Points

  • Costco is facing negotiations with the International Brotherhood of Teamsters as their current collective-bargaining contract expires.
  • Hourly wages for store clerks and assistants at the top of the pay scale will go up by $1 to $30.20 an hour, with further increases planned.
  • The company's high wages and benefits help maintain a lower turnover rate compared to competitors.

Pros

  • Hourly wages for many workers will exceed $30 an hour.
  • High wages and benefits contribute to lower turnover rates at Costco.

Cons

  • Nonunion workers lack the retirement security of a defined benefit pension plan and job protections.