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.

Costco and the Teamsters union have reached a tentative agreement on a new contract, avoiding a strike, the union said Saturday. Teamsters spokesman Matthew McQuaid confirmed the agreement, which will have to be approved by members.

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 $