Costco Wholesale Corp. has announced a pay increase for most of its hourly U.S. employees, raising the top wage to over $30 per hour over the next three years. The move comes as the company continues negotiations with the Teamsters union, which represents less than 10 percent of Costco’s 219,000 U.S. employees and has voted to authorize a strike if a new collective bargaining agreement is not reached before the current contract expires on Friday, according to the Financial Post.

According to a memo from Costco CEO Ron Vachris, employees at the top of the company’s pay scale will see their wages increase by $1 per hour in March to $30.20, with additional $1 per hour raises scheduled for each of the next two years. Workers at the lower end of the pay scale will receive a $0.50 per hour raise, bringing the starting wage to $20 per hour. The increases apply only to employees at non-union locations.

Costco has declined to comment on the decision.

Union Pressure and Strike Authorization Matthew McQuaid, a spokesperson for Costco Teamsters, stated that while the union is pleased to see pay increases, it believes union pressure played a key role in prompting the decision. The union contract covering thousands of Costco’s unionized employees expires on Friday, and members had already authorized a strike if a new agreement was not reached.

Locally, the Costco in Clermont stands to also benefit from this decision and would become one of the highest paying jobs in the wholesale industry. The average pay for Sam’s Club and BJ’s Wholesale Club employees sit between $15 and $17 hourly.