Costco, Teamsters reach tentative contract agreement and avoid a strike

Costco and the Teamsters union have tentatively agreed on a new contract, successfully avoiding a strike, as announced by the union on Saturday. This agreement, which needs member approval, follows significant negotiations, although specific details have not yet been released. The Associated Press has reached out to Costco for further comments.

The Teamsters union represents approximately 18,000 Costco employees across six states: California, Washington, Maryland, Virginia, New Jersey, and New York. Despite the union's influence, it's worth noting that this contract affects less than 10% of Costco's 617 U.S. stores, where the company employs a total of 219,000 workers.

Concerns heightened earlier this month when Teamsters members voted overwhelmingly in favor of a potential strike if a new three-year contract was not negotiated by the deadline, which coincided with the expiration of the current contract. Union members demanded an offer that was commensurate with Costco's sales and profit achievements.

In its latest fiscal year, Costco reported a revenue increase of 5%, reaching $254 billion, with a net income of $7.36 billion—more than double its profit from 2019. These figures fueled the union's demands for a contract that aligns with the company’s substantial financial success.

Teamsters General President Sean O’Brien emphasized the need for an "industry-leading contract" reflecting Costco's profits, warning that any attempts to underpay members would lead to serious repercussions. The agreement signifies a critical juncture for both the company and its workforce as they strive to meet mutual interests.