Costco Wholesale is set to increase wages for most of its hourly workers in US stores to more than $30 per hour, as the company faces pressure from unionised workers threatening strike action over pay and benefits.

The retail giant plans to implement the pay rise over a three-year period, with top-scale employees receiving an initial increase of $1 to $30.20 in the first year, followed by additional $1 increases in each of the subsequent two years. Entry-level workers will see their hourly rate increase by 50 cents to $20.

In the company memo announcing the wage increase, chief executive officer Ron Vachris stated: "With these changes, we believe our hourly wages and benefits will continue to far outpace others in the retail industry."

The announcement comes as the Costco Teamsters union, representing more than 18,000 workers, reported that 85 per cent of its members voted to authorise a nationwide strike last week. Workers have already participated in practice pickets across multiple locations from California to New York, including Hayward, Sumner, and Long Island.

"We are the backbone of Costco. We drive its success and generate its profits. We hope the company will step up and do right by us, but if they don't, that's on them," said Bryan Fields, a Costco worker in Baltimore and member of Teamsters Local 570.

The union's demands come against a backdrop of significant financial success for Costco, which reported annual revenue of $254 billion and net profits of $7.4 billion—representing a 135 per cent increase since 2018.

Teamsters general president Sean M. O'Brien had previously warned: "Our members have spoken loud and clear — Costco must deliver a fair contract, or they'll be held accountable." The current labour agreement is set to expire on 31 January.

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