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Costco vs. Loblaws: Which Grocery Union is Stronger? (2026 Comparison)

Is the legendary $30/hour Costco wage real? We compare the Costco Employee Agreement against the Loblaws (UFCW) Union Contract, revealing the truth about the $4.00 Sunday Premium, the "Part-Time Guarantee" trap, and why one takes 6 years to top out while the other keeps you at minimum wage.
A split screen showing a Costco employee in a red vest pushing a flatbed cart next to a Loblaws employee in a uniform stocking produce, with a "Pay Scale" graph in the background.

If you are looking for a retail job in Canada in 2026, you generally have two choices:

  1. The "Golden Ticket": Costco.
  2. The "Student Standard": Loblaws (Superstore, No Frills, Zehrs, Fortinos).

Everyone "knows" Costco is better. The urban legend says Costco cashiers drive BMWs and make $70,000 a year.

Meanwhile, Loblaws is seen as the typical minimum wage grind where the Union takes a cut of your small paycheck.

But is the Union actually weaker?

In 2026, the gap between these two retail giants has widened.

Costco (mostly non-union in Canada) operates on an "Employee Agreement" designed to keep unions out by paying above union rates.

Loblaws (heavily unionized under UFCW) operates on a strict "Collective Agreement" that protects you from being fired but makes it incredibly hard to get a raise.

This guide breaks down the math: The Sunday Premium, the "Top Rate" timeline (6 years vs. never), and the reality of paying union dues for a job that barely gives you 15 hours a week.

Not into retail? Check out Night Shift Warehouse Premiums for higher hourly rates or Garbage Truck Runner for outdoor fitness.

The Pay Battle: "The Grid" vs. "Top Rate"

Both companies pay based on Hours Worked. You don't get a raise for working hard; you get a raise for surviving another 1,000 hours.

1. Costco (The "Golden Handcuffs")

  • Starting Rate (2026 Est): $18.50 - $19.50/hour. (Service Assistant).
  • The Climb: You get a $0.50 - $1.00 raise every 1,040 hours (approx. 6 months full-time).
  • The "Top Rate": This is the holy grail. After approx. 12,000 hours (6 years), you jump to the "Top Rate."
    • Service Assistant (Packer): ~$29.00/hour.
    • Service Clerk (Cashier/Driver): ~$31.00/hour.
  • The Bonus: Once you are at Top Rate, you get Bi-Annual Bonuses ($2,500 - $5,000 extra per year).

2. Loblaws (The "Minimum Wage Plus")

  • Starting Rate: Minimum Wage + $0.10 (e.g., $17.30 in Ontario).
  • The Climb: You get a $0.15 - $0.25 raise every 500 or 1,000 hours.
  • The Reality: Because the minimum wage keeps going up, the "Bottom" of the grid keeps rising, eating your raises.
    • Example: You work for 2 years to earn a $0.50 raise. Minimum wage goes up by $0.50. You are now back at the bottom rate. This is called "Compression."
  • Top Rate: Long-term full-timers can make $25+, but Part-Timers are often capped at **$21 - $23/hour** regardless of years served.

Winner: Costco. By a landslide. A 5-year Costco employee makes double what a 5-year Loblaws employee makes.

The "Sunday Premium": The $4.00 Myth

This is the most famous perk in Canadian retail.

Costco's Sunday Premium

  • The Rule: If you work on Sunday, you get an extra $4.00 per hour.
  • Is it real? YES.
  • The Impact: If you are a student making $19/hr, your Sunday shift is **$23/hr**. If you are a Top Rate cashier ($31), your Sunday shift is **$35/hr**.
  • Availability: Everyone fights for Sunday shifts.

Loblaws' Sunday Premium

  • The Rule: Most new contracts (post-2015 hires) have Eliminated the Sunday premium.
  • The Reality: You get paid regular time. Only "Grandfathered" employees (hired before 2005) still get the old $1.60 premium.
  • The Vibe: Nobody wants to work Sundays. It is the busiest day with zero financial incentive.

Union Dues: Protection vs. Cost

Here is the irony: You pay to work at Loblaws. You work for free at Costco.

Loblaws (UFCW Union)

  • Cost: 1.5% - 2% of your paycheck + Weekly Flat Fee (e.g., $0.60).
  • Approx Cost: $15 - $25 per month.
  • What you get:
    • Job Security: It is almost impossible to be fired.
    • Representation: If a manager yells at you, you call the Rep.
  • The Downside: If you only work 8 hours a week, the dues eat a huge chunk of your "coffee money."

Costco (Non-Union Agreement)

  • Cost: $0.
  • What you get:
    • "The Agreement": A contract that guarantees raises and breaks.
    • Open Door Policy: You can complain to head office if your manager is toxic.
  • The Downside: They can fire you easier during probation (90 days). You have to toe the company line.

The "Guaranteed Hours" Trap

This is the #1 complaint from Loblaws employees.

Loblaws: "Available Anytime, Scheduled Never"

  • The Rule: To keep your job, you often have to provide "Open Availability" for certain days.
  • The Trap: You say "I am free all weekend." They schedule you for one 4-hour shift.
  • The Result: You can't get a second job because you might be scheduled, but you don't get enough hours to pay rent.
  • The "Call-In": "Can you come in in 30 minutes?" If you say no too many times, they stop calling.

Costco: The "Minimum Hours" Check

  • Full Time: Guaranteed 40 hours.
  • Part Time: Guaranteed 25 hours (in most buildings).
  • The Difference: Costco Part-Time is actually a "Part-Time Job" that pays bills. Loblaws Part-Time is "Pocket Money."
  • Note: Costco also hires "Limited Part Time" (LPT) students with no guarantee (Fri/Sat/Sun only), which is perfect for students.

Meat Cutter & Specialized Roles

If you want to make $30/hour fast, put down the cash register and pick up a knife.

The Meat Department

  • Loblaws:
    • Job: Meat Clerk (Stocking).
    • Pay: Standard grid ($17-$19).
    • Butcher: Requires trade certificate. Pays $24 - $28/hour.
  • Costco:
    • Job: Meat Cutter.
    • Pay: Starts on a higher scale (Scale A). Hits top rate faster.
    • Top Rate: $32.00+ / hour.
    • Task: Trimming massive loins. It is cold (-4°C) and physically hard, but the pay is incredible.

The Bakery

  • Costco Baker: Also on the higher "Scale A."
  • The Shift: often 4:00 AM start.
  • The Perk: You finish at 12:30 PM and have the whole day off. Plus, no customers to deal with.

Student Leave (LOA) Policies

What happens when exams start?

  • Costco (Student Retention Program):
    • You can take a Leave of Absence (LOA) for University.
    • You work summers and winter break.
    • The Perk: You keep your seniority and your "Hours Bank" doesn't reset. You keep climbing the pay scale every summer.
  • Loblaws:
    • Similar policy, but managers are often stricter. They might say "If you can't work weekends, we have to let you go."
    • Result: You quit and get rehired next summer at the bottom of the pay grid again.

Practical Questions Answered

"Is it hard to get hired at Costco?"

YES. Extremely.

  • The Stat: Costco receives 5,000+ applications per store opening.
  • The Hack: Do not apply online.
    • Go to the warehouse Tuesday - Thursday between 2pm - 4pm.
    • Bring a resume. Ask to speak to a "Manager" (not a supervisor).
    • Say: "I have open availability and I am willing to work in the Food Court or Sanitation." (Nobody wants those depts).

"Does Loblaws really pay minimum wage forever?"

Basically.

  • Unless you are Full-Time (which takes 5-10 years to achieve), you will likely hover within $1.00 of minimum wage your entire career.
  • Why stay? It is low stress. Costco is High Stress. At Costco, you are timed on how fast you scan items (Items Per Minute). At Loblaws, nobody cares.

"Can I transfer stores?"

Yes for both.

  • Costco: Very easy to transfer to another warehouse (even in another province). Great for students moving for school.
  • Loblaws: Harder. You often have to quit and be rehired by the new Franchise owner, losing your seniority.

Frequently Asked Questions

Do I get a free membership?

  • Costco: Yes. You get a free Executive Membership (Value $130) + 3 free memberships for family/friends. This is a huge perk.
  • Loblaws: You get a 10% Discount Colleague Card.
    • The Catch: It creates a "Company Store" dynamic where you give your paycheck right back to them.

What are the benefits like?

  • Costco: Excellent. 80% dental, prescription drugs, glasses. Part-timers qualify after probation.
  • Loblaws: Good, but qualification is harder. You often need to maintain a certain average of hours to keep them.

Do they drug test?

  • Costco: Yes (Swab test) for "Safety Sensitive" positions (Forklift, Tire Centre).
  • Loblaws: Generally No, unless there is an accident.

Summary: The Winner is Clear

  1. Apply to Costco First: It is a legitimate career path with a living wage ($30/hr) and Sunday Premiums.
  2. Use Loblaws as Backup: It is a fine "first job" for 16-year-olds, but do not stay past university. The union dues and low wage cap make it a dead end.
  3. Target the "Bad" Departments: To get into Costco, apply for Sanitation (Cleaning) or Food Court. Once you are in, you can transfer to Electronics later.
  4. Check the Agreement: If you are at Loblaws, read your local contract. If it doesn't guarantee hours, start looking elsewhere.

About the author

Jeff Calixte (MC Yow-Z) is a Canadian career researcher and digital entrepreneur who studies hiring trends, labour market data, and real entry-level opportunities across Canada. He specializes in simplifying the job search for newcomers, students, and workers using practical, up-to-date information.

Sources

Note

Job availability, wages, and hiring conditions can vary widely by province, employer, season, and experience level. All salary ranges and job examples in this guide are estimates based on current labour market data. Always confirm details directly with the employer before applying.

Published by:

Mc Yow-z Jeff Calixte