Costco, Teamsters reach tentative contract agreement and avoid a strike

Costco and the Teamsters union have averted a strike by reaching a tentative agreement on a new contract, as announced by the union on Saturday. Teamsters spokesman Matthew McQuaid confirmed the agreement, which will require approval from union members, but specific details were not disclosed. Requests for comment from Costco were not immediately answered.

The Teamsters union represents around 18,000 Costco employees across six states: California, Washington, Maryland, Virginia, New Jersey, and New York. Despite representing a significant number of workers, this agreement pertains to less than 10% of Costco's total U.S. stores, which number 617 and employ a total of 219,000 people.

Prior to reaching the agreement, Teamsters members voted decisively in favor of a strike if a new three-year contract was not established by the deadline of midnight Friday, as the previous contract was set to expire. The union's membership was advocating for an offer that acknowledged the company's impressive sales and profit growth.

In its most recent fiscal year, Costco reported a revenue increase of 5%, totaling $254 billion, along with a net income of $7.36 billion, which is double its earnings from 2019. The union emphasized that given these substantial profits, workers deserved a contract that was reflective of Costco’s financial success.

Teamsters General President Sean O'Brien stated that Costco workers merit an industry-leading contract and warned that any attempt by the company to undervalue their contributions would not go unchallenged. He stressed the importance of the union's role in ensuring workers' rights amidst Costco's growing profits.