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Costco’s 2025 Non-Union Pay Raises and the Teamsters Contract: What Happened

Costco’s March 2025 non-union pay increases landed just before a Teamsters contract deadline. The parties later reached a deal, and the union reported ratification in April.
From TheFinanceBase Team4 min to read
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Costco’s March 2025 pay increases applied to non-union hourly employees—not the roughly 18,000 workers covered by a separate Teamsters contract. That contract expired on January 31, 2025, but Costco and the union reached a tentative agreement hours later, averting a threatened strike. In April, the Teamsters reported that members had ratified the agreement. So the headline’s “waiting” describes the moment the non-union raises were announced, not the eventual outcome.

Who received Costco’s March 2025 raises?

The announced increases were for non-union hourly employees. Teamsters-represented workers were negotiating under their own national agreement, with separate wages, benefits, and workplace terms. The two groups therefore did not receive raises through the same announcement or under the same arrangement.

CBS News reported that, beginning in March 2025, top-of-scale clerks were set to earn $31.90 an hour and top-of-scale assistants $30.20. At the bottom of the reported scale, clerks were set to earn $21 an hour and assistants $20. CBS also reported that top-of-scale assistants would receive $1 hourly increases in March 2025, March 2026, and March 2027. These are reported schedule figures, not a complete pay grid for every job, location, or tenure level. CBS News’ report on the announced pay changes does not establish every rate in force today.

Non-union hourly role Reported rate beginning March 2025
Clerk, top of scale $31.90 an hour
Assistant, top of scale $30.20 an hour
Clerk, bottom of scale $21 an hour
Assistant, bottom of scale $20 an hour

Rates and schedule above are those reported by CBS News for the March 2025 announcement; they should not be treated as a complete current 2026 wage schedule.

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Why were workers described as waiting?

The timing put the non-union announcement alongside a high-stakes contract deadline. The Teamsters said 85 percent of Costco Teamsters had voted to authorize a strike if an agreement was not reached. The national agreement covered more than 18,000 workers and expired at midnight on January 31, 2025. The strike-authorization figure is the union’s reported vote result, not a measure of how many workers actually went on strike. The Teamsters’ strike-authorization announcement described the vote and deadline.

Before the tentative deal, Teamsters General President Sean O’Brien said, “Costco Teamsters deserve an industry-leading contract that reflects the company’s massive profits. If Costco thinks they can exploit our members while raking in billions, we’ll shut them down.” The statement was made during bargaining, before the parties announced an agreement. The Associated Press’ coverage reported the union’s position.

Did Costco Teamsters strike, and what happened to their contract?

No strike followed the deadline: Costco and the Teamsters announced a tentative agreement hours after the contract expired. In April 2025, the union reported that more than 18,000 Costco Teamsters had ratified a national master agreement. The Teamsters characterized the agreement as providing higher wages, a 22 percent increase in employer pension contributions, and more than 40 language improvements. Those descriptions and figures come from the union’s announcement. The Teamsters’ ratification announcement summarizes the reported outcome.

For specific provisions, the union’s February 8, 2025 final voting document is more useful than a broad summary. It is the appropriate source to consult when checking what the agreement says about particular terms; the ratification announcement alone is not a full contract text.

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How should the two pay announcements be compared?

The non-union raise announcement and the Teamsters’ ratified agreement are different instruments. A fair comparison needs to distinguish hourly rates and scheduled increases from pension contributions and enforceable contract language. The announced non-union figures cited above do not supply equivalent data for every Teamsters classification, while the union’s summary does not provide a complete comparison of individual wage rates.

  • Hourly wages: The non-union figures were reported for selected clerk and assistant positions. Check the union voting document for contract-specific terms rather than assuming the non-union schedule applied to represented employees.
  • Effective dates and retroactivity: The non-union schedule was reported as beginning in March 2025. The summarized sources do not establish all Teamsters wage effective dates or whether every provision was retroactive.
  • Pensions and other benefits: The Teamsters reported a 22 percent increase in employer pension contributions under the ratified agreement. That is not the same measure as hourly pay.
  • Contract protections: The Teamsters reported more than 40 language improvements. The union’s final voting document is the better source for assessing particular provisions on workplace terms.

What is known—and not known—about the raise’s motive and current pay

The timing prompted competing interpretations, but it does not establish why Costco set the non-union increases when it did. Teamsters spokesperson Matt McQuaid called the increase “fake generosity” and argued that non-union workers lacked the retirement security and job protections of a union contract. That was the union’s view, not proof of Costco’s motive. CBS reported that CEO Ron Vachris told employees, “We believe our hourly wages and benefits will continue to far outpace others in the retail industry.” That is Vachris’s statement as quoted in the company memo, not an independent comparison of retail compensation. CBS News’ account includes the company’s reported rationale and the union’s response.

The figures reported for March 2025 do not establish a full Costco wage schedule as of October 2026. They do not cover every classification, tenure level, market, or bargaining unit. For an individual rate, the relevant location, job classification, and employment terms matter; the cited announcement alone cannot determine an employee’s current pay.

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