Costco’s Latest Store Change Has Members So Excited
Costco continues to garner a devoted following, with fans obsessing over the warehouse store’s new snacks, bakery items, frozen foods, and even homeware gems. The retailer is now winning over shoppers once again with a new store policy that could greatly affect the future of many of its employees.
Costco plans to roll out a pay increase for its nonunionized workers over the next three years, according to an internal memo sent to employees. This move has resonated with shoppers — many of whom are now choosing to support the warehouse retailer in response to its commitment to investing in its workforce.
Here’s what you need to know about Costco’s new wage increase: Starting in March 2024, store clerks and assistants at the top of the pay scale will see their hourly pay go up by $1 to $30.20 an hour, with another $1 increase each year thereafter. For entry-level employees, wages will rise by 50 cents to $20 an hour. “With these changes, we believe our hourly wages and benefits will continue to far outpace others in the retail industry,” the company said in the memo.
This policy rollout comes as the International Brotherhood of Teamsters, representing nearly 18,000 Costco employees, pushes for better pay and benefits. Their efforts are part of ongoing negotiations before their contract expires on Friday, February 7. “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,” Matthew McQuaid, a Costco Teamsters spokesperson, said in an email sent to NPR.
A few days ago, Costco also announced it would continue its commitment to DEI (diversity, equity, and inclusion) policies, even as many companies are falling short of their initial promises to prioritize company culture. As a result, many shoppers are not only attracted to Costco for its wide range of products, but are also choosing to support the company for its commitment to investing in and supporting its employees.
When news of Costco’s wage increase for employees spread on social media, people quickly took to the comments to show their support. Complex, a pop culture news platform, posted about the store policy change, and one user commented, “I’m going to get my Costco membership.” Another added, “Support Costco at all costs. We need all other stores, companies, and businesses to match this, or better. I’m talking about all the ones making hundreds of millions, billions. I’m going to Costco more often, starting now.”
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