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‘Not even enough to buy a Costco hot dog’: Costco announces raises for employees. Then the backlash starts

‘I might just go get a Costco membership to support this.’

Photo of Anna Good

Anna Good

2 panel image on the left is the exterior of a Costco store and on the right is a tweet from a Costco employee.

Costco announced wage increases for its hourly U.S. employees, but not all workers are celebrating equally. Long-term employees at the top of the pay scale will see their wages rise from $29.20 to $30.20 an hour (a $1 per hour raise) starting in March 2025, with two more $1 raises in 2026 and 2027.

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Entry-level employees, meanwhile, will receive just a 50-cent bump, bringing their hourly rate to $20.

Costco raises wages — and draws mixed reactions

Costco touts its competitive pay structure as a reason for low turnover and high worker satisfaction, yet the discrepancy in wage hikes between veteran and entry-level employees raises questions about how the company values its newest hires. Critics argue that with inflation and cost of living on the rise, a 50-cent raise doesn’t go far enough to support new workers.

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Teamsters's response to Costco's wage increase announcement.
@Teamsters/X

Still, Costco remains one of the highest-paying retailers in the country, a fact that CEO Ron Vachris emphasized in an internal memo. Their wages and benefits “will continue to far outpace others in the retail industry,” he wrote. 

Teamsters union and social media claim that the raises aren’t good enough

Costco is in the middle of contract negotiations with the Teamsters union, which represents over 18,000 Costco workers nationwide, and while the raise is one of the union’s demands, they and workers agree that it is not enough.

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Earlier this month, 85% of Teamsters members voted to authorize a strike if negotiations didn’t meet their demands for both better benefits and pay. Now, with the collective bargaining agreement set to expire on Jan. 31, the union is making it clear that the proposed raises are not enough.

According to a post on X, formerly known as Twitter, the Teamsters account writes, “Costco reported $7.4 billion in profits last year — a 135 percent increase since 2018. So how’s the company rewarding workers? By proposing less than 3 percent raises, kicking workers just $1 in the first year of a new contract. That’s not even enough to buy a Costco hot dog.”

Others on social media shared their personal experiences working at Costco or views on the pay raise.

Tweet response to Costco's wage increase announcement. Text reads, 'I'm a 24 year employee of Costco. I've been an topped out Supervisor since 2005. When you look at the value of the dollar and the cost of living Costco is $6-7 behind on the top out wages. These 2.6% raises are are not keeping up with pay we were used to 10-15 years ago'
@King_Kenne_/X
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Tweet response to Costco's wage increase announcement. Text reads, 'For those following the rollback on DEI initiatives: While @Costco still has initiatives in place, they are union busting! Words mean nothing if you aren’t paying your workers a living wage! @Teamsters may go on strike by the end of the week. DO NOT CROSS THE PICKET LINE IF SO!'
@unionhabibti/X
Tweet response to Costco's wage increase announcement. Text reads, 'Absolutely love working for Costco Buttt this is only for supervisor and TOS employees. Everyone else is getting $1 raise every march for the next three years starting this march ON TOP of the hourly raises you get.'
@unionhabibti/X
Tweet response to Costco's wage increase announcement. Text reads, 'Been there less than 13 months and I’ve been promoted, forklift trained, have received 3 hourly raises(one I just got two days ago) 1 company wide raise and about to get another in less than a month. I WISH I could’ve started working here out of high school.'
@smokeyflarez/X
Reddit response to Costco's wage increase announcement. Text reads, 'Time to get a job at Costco…'
@smokeyflarez/X
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Reddit response to Costco's wage increase announcement. Text reads, 'Truth. I worked there for about 2 years. They have hiring seasons (usually right after holidays and budgets have been finalized for upcoming FY). It’s also a pretty big step up in terms of work required and responsibility as far as retail work goes. If you can make it off the front end as a cashier’s assistant, you can do pretty much anything there. That first year or so is the weed out spot'
u/MuteTadpole via Reddit
Reddit response to Costco's wage increase announcement. Text reads, 'My nearest Costco is in El Paso, TX where minimum wage is still the federal minimum of $7.50. I live right across the border in New Mexico where it’s $12.65 in my city. $20 an hour in El Paso can buy a lot.'
u/Mecca_Lecca_Hi via Reddit
Reddit response to Costco's wage increase announcement. Text reads, 'The top performers at the target I worked at got like 20 cents. Most got five or ten. I am THIS close to boycotting target. In fact I might just go get a Costco membership to support this.'
u/Mecca_Lecca_Hi via Reddit
Reddit response to Costco's wage increase announcement. Text reads, 'While this is great that Costco is doing it, let's not ignore the fact that it's a response to a union activity. The union, its members, and Costco win. Everyone wins and everyone makes money. Maybe a few execs or share holders get a few less dollars, but there is enough to go around. Adding in the DEI support, switch back to Coke products, and retaining the 1.50 hotdog, it's an awesome week'
u/Mecca_Lecca_Hi via Reddit
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Reddit response to Costco's wage increase announcement. Text reads, 'Costco is really going out of their way to prove a corporate entity can do good things regarding its labor and practices while also being profitable. I’m not saying Costco is perfect by any means, I’m sure there are gripes about stuff, but at least they are trying not to be evil profiteering shitlords who cave to authoritarian pressures and these are the types of companies we should be funneling out investments and business to as a public - this is how we really start to move the needle for good change and make our voice heard / reward those who are trending away from the exploitation of our society.'
u/BBTB2 via Reddit

Costco’s DEI statement 

While some corporations, public universities, and organizations have followed political pressure to remove diversity, equity, and inclusion (DEI) initiatives, Costco is making it clear that it won’t be backing down.

In Costco’s Notice of Annual Meeting of Shareholders document, the company firmly rejected a shareholder proposal claiming DEI initiatives could lead to “illegal discrimination” against white, Asian, male, or straight employees. The Board of Directors dismissed these concerns, stating that respect and inclusion remain core to the company’s operations. 

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In their response to the proposal, the board wrote, “Combined with our obedience to the law, service to our employees, members and suppliers has rewarded our shareholders. This is our code of ethics. Our focus on diversity, equity and inclusion is not, however, only for the sake of improved financial performance but to enhance our culture and the well-being of people whose lives we influence.”

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