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Costco is raising pay for most workers as Friday night deadline looms on a new contract with its unionized employees.

"We believe our hourly wages and benefits will continue to far outpace others in the retail industry," Ron Vachris, the retailer's president and CEO, said in a memo Tuesday to employees.

Costco will increase its pay for nonunion employees, meaning most of its hourly workers will get paid more than $30 an hour.

A day before Costco union members were due to go on a nationwide strike, the company announced pay raises for all non-union employees.