Costco and the Teamsters union have come to a preliminary agreement on a new contract, helping to prevent a potential strike, as announced by the union on Saturday. Teamsters representative Matthew McQuaid confirmed the deal, which still needs member approval. Specific details about the agreement have not yet been disclosed, and Costco has not publicly commented on the matter.
The Teamsters represent around 18,000 Costco employees across six states, including California, Washington, Maryland, Virginia, New Jersey, and New York. While the total number of Costco workers in the U.S. stands at 219,000, this labor agreement affects less than 10% of the company’s retail locations.
Earlier this year, on January 20, members of the Teamsters voted overwhelmingly to authorize a strike if a new three-year contract was not finalized by the deadline, which was set for midnight Friday when the previous contract expired.
Union leaders highlighted that they were seeking a contract that meets the needs and expectations of employees, particularly in light of Costco’s substantial sales and profit gains. In its most recent fiscal year, Costco’s revenue increased by 5%, totaling $254 billion, with a remarkable net income of $7.36 billion, which is double the profit the company reported in 2019.
Teamsters General President Sean O’Brien emphasized the importance of fair compensation, stating, “Costco Teamsters deserve a top-level contract that reflects the company’s significant profits. If Costco believes it can take advantage of our members while it continues to earn billions, we are ready to take action.”
