Jan 30 (Reuters) - Retailer Costco Wholesale

will increase pay for most of its hourly U.S. store workers to

more than $30, according to a memo sent to employees this week.

The company will increase hourly pay for its top of the

scale employees over the next three years, with the pay rising

by $1 to $30.20 in the first year and an extra $1 each in the

subsequent two years, according to the memo.

The pay hike comes after 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.

The union, which represents more than 18,000 workers at

Costco, said at the time that 85% of its members voted to

authorize a strike.

The bottom of the scale employees will also get an increase

of 50 cents to $20, according to the memo.

"With these changes, we believe our hourly wages and

benefits will continue to far outpace others in the retail

industry," the company said in the memo signed by CEO Ron

Vachris.