Costco, Teamsters reach tentative contract agreement, avoiding a strike

Costco and the Teamsters union have reached a tentative agreement on a new contract, successfully avoiding a strike, as announced by the union on Saturday. Teamsters spokesman Matthew McQuaid confirmed the agreement, which still requires approval from union members. Specific details of the contract have not yet been released, and Costco was approached for comment on the matter.

The Teamsters union represents around 18,000 Costco workers across six states, including California, Washington, Maryland, Virginia, New Jersey, and New York. Although Costco employs approximately 219,000 individuals in the U.S. and operates 617 stores nationwide, the labor agreement with the Teamsters affects less than 10% of these locations.

Prior to reaching the agreement, Teamsters members had voted overwhelmingly to strike if a new three-year contract was not negotiated by the expiration of the current contract on Friday at midnight. Union members were advocating for a contract offer that would reflect Costco's substantial sales and profit growth.

In the most recent fiscal year, Costco reported a 5% increase in revenue, totaling $254 billion, with a net income of $7.36 billion—double the profits from 2019. These financial successes fueled the union's demands for an industry-leading contract that would recognize the workforce's contributions.

Teamsters General President Sean O'Brien emphasized the necessity of a fair agreement, stating, "Costco Teamsters deserve an industry-leading contract that reflects the company's massive profits." The successful negotiations prevent potential disruptions and ensure continued collaboration between Costco and its workers.