A strike could have disrupted by popular wholesale outlet's operations
of ConsumerAffairsCostco Wholesale and the Teamsters union have reached a tentative agreement on a new contract, averting a strike that could have disrupted operations. The International Brotherhood of Teamsters confirmed the agreement on Saturday, with the union stating that further details would be shared soon.
The agreement, which still requires approval from union members, marks a crucial step in negotiations that had been tense leading up to the contract's expiration.
Teamsters spokesman Matthew McQuaid confirmed that the deal was reached, though he noted that specific details would remain confidential until the union members had a chance to review and vote on the proposal. The union represents about 18,000 Costco workers across five states, making up roughly 8% of Costco's total U.S. workforce. Costco operates 617 stores in the U.S. and employs a total of 219,000 people in the country.
The negotiations came to a head on January 20, when Costco Teamsters members voted overwhelmingly in favor of a strike if a new contract wasnt finalized by the expiration of the current agreement on January 31. A resounding 85% of the union's members voted in favor of striking, citing concerns that Costco's failure to offer a contract that reflected the companys booming profits was unfair to its workers.
Record profits, demands for higher pay
Costco had reported record profits for the most recent fiscal year, with a revenue increase of 5%, reaching $254 billion, and a net income of $7.36 billion, more than double its 2019 profit.
The Teamsters had been lobbying for higher wages, improved retirement benefits, seniority pay, and better family leave policies. Workers also sought increased protections against surveillance and enhanced bereavement policies.
In response to union demands and to help avoid a strike, Costco announced last week that it would raise wages for most of its hourly employees to over $30 per hour, though it remains unclear whether this wage increase played a role in averting the strike.
The tentative agreement signals progress in the ongoing negotiations, but the deal still needs to be voted on by union members. If ratified, the new three-year contract will set the terms for the next phase of Costco's labor relations with its employees. Until then, details of the contract will remain confidential, and both sides will wait for the membership vote to determine the final outcome.
Photo Credit: Consumer Affairs News Department Images
Posted: 2025-02-04 22:33:32
