The looming threat of 18,000 Costco store employees heading to the picket lines appears less likely, with the Teamsters labor union announcing Saturday that it has reached a tentative agreement for a new contract with the grocery chain.

The Teamsters Union said a strike at 56 Costco membership club stores across six states was averted, one day after the wholesale club announced pay for non-union workers will rise to between $20 and $

Wholesale retailer Costco told employees it would hike pay for most of its hourly store workers to as much as $32.

Costco is increasing its pay of its hourly employees to more than 30 dollars an hour, according to a memo obtained by multiple media outlets.