Retail giant Costco Wholesale plans to increase pay for most of its hourly U.S. store workers to more than $30, reports Reuters, who cited a memo sent to employees this week.

According to the memo, Costo will increase hourly pay for its top of the scale employees, or employees in senior positions, over the next three years. The pay will initially increase by $1 to $30.20 in the first year and an extra $1 each in the following two years.

The news about the pay raise comes amid a potential strike. Costco Teamsters union members said earlier this month that they voted in favor of a nationwide strike as they entered final round of talks to reach a new contract ahead of a Jan. 31 deadline, reports Reuters.

Quartz reports the potential wage increase would also come amid Costco’s record profits. In fiscal 2024, Costco reported $254 billion in revenue and $7.4 billion in profits.