Costco to raise hourly pay for most US store workers to over $30

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(Retuers) - Retailer Costco Wholesale will boost pay for most of its hourly U.S. store workers to more than $30, according to a note sent to employees this week.

The company plans to gradually boost the hourly wages of its highest-paid workers over the next three years. The salary will start to increase immediately by $1, so the top rate will be $30.20 per hour. In each of the following two years, the wage will rise by an additional $1.

The pay hike comes after Costco Teamsters union members said earlier this month that they voted in favor of a nationwide strike as they entered final round of talks to reach a new contract ahead of a Jan. 31 deadline.

The union, which represents more than 18,000 workers at Costco, reported that 85% of its members voted in favor of a strike authorization at the time.

Employees at the lower end of the scale will receive a $20 to $20.50 pay increase, based on the company memo.

"The changes we've made will keep our hourly wages and benefits far ahead of what most other retailers are offering," the company said in a memo signed by CEO Ron Vachris.

(Reporting by Rishabh Jaiswal in Bengaluru; Editing by Subhranshu Sahu)