Wholesale retailer Costco has told its employees that pay for most of hourly store workers will increase to more than $30.

In a memo sent to employers obtained by Reuters, Costco will increase pay for its top-of-the-scale employees over the next three years. Pay will go up by $1 to $30.20 an hour the first year, with another $1 increase in the subsequent two years.

"With these changes, we believe our hourly wages and benefits will continue to far outpace others in the retail industry," the memo said.

According to the same memo, bottom-of-the-scale employees will also see an increase of 50 cents, bringing pay to $20 an hour.

Costco is the third largest retailer in the world by revenue only behind Walmart and Amazon, according to Deloitte.

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Pay rise comes as strike looms

The pay increase comes as Costco union members under the Teamsters voted to authorize a nationwide strike earlier this month as new contract negotiations enter the final round of talks ahead of a Friday deadline.

“The vote is a direct result of the company’s continued failure to bargain constructively and refusal to present a fair contract offer that reflects the company's record-breaking profits,” the Teamsters said in a social media post earlier this month.

Representing more than 18,000 Costco workers, the union says 85% of its members voted to authorize the strike. Teamsters spokesperson Matthew McQuaid said the pay increase announced by Costco came to be due to the pressure being put on by the union.

"Don’t be fooled by Costco’s fake generosity. This is not a worker-friendly company — it's a company that’s terrified of worker power," McQuaid said. "There are still 18,000 unionized workers who know their worth and are demanding it."

Costco has grabbed headlines for other initiatives

Last week, Costco shareholders voted down an investor proposal from a conservative think tank that urged management to investigate the business risks of its diversity initiatives. 

More than 98% of shares voted against the proposal, according to preliminary results announced by Costco chairman Hamilton “Tony” James. 

"We owe our success to the more than 300,000 employees who serve our members every day. It is important that they all feel included and appreciated and that they transmit these values to our customers," James said.

He and other board members had asked shareholders to reject the proposal involving the company's diversity, equity and inclusion policies ahead of Costco’s annual meeting.

Following the vote, 19 Attorneys General wrote to Costco CEO Ron Vachris urging Costco to end its DEI initiatives.

Costco did not immediately respond to USA TODAY’s request for comment.

Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Reach him at [email protected] and follow him on X @fern_cerv_.