Costco and the Teamsters union have successfully negotiated a tentative agreement on a new contract, which has averted a potential strike, as announced by the union on Saturday. Matthew McQuaid, a spokesperson for the Teamsters, confirmed that while the details of the agreement have not yet been disclosed, it still requires approval from the union’s members. Efforts to obtain comments from Costco have not been successful.
The Teamsters union represents approximately 18,000 Costco workers across six states: California, Washington, Maryland, Virginia, New Jersey, and New York. While Costco boasts a workforce of 219,000 U.S. employees and has 617 stores across the country, the current labor agreement with the Teamsters pertains to less than 10% of those locations.
The urgency for a new contract escalated earlier this year, as Teamsters members voted in favor of a strike if an agreement was not reached by a deadline of midnight on Friday. The union had advocated for a contract that reflects Costco’s significant sales and profit growth, with the company reporting a revenue increase of 5% to $254 billion for the fiscal year ending September 1, along with a net income of $7.36 billion—double its profit from 2019.
Teamsters General President Sean O’Brien emphasized the need for an “industry-leading contract” that acknowledges the company’s substantial profits, indicating the union’s commitment to ensuring that workers are rewarded fairly.
This tentative agreement marks a positive development for both Costco workers and the company, allowing for continued collaboration and stability within the workforce while addressing the concerns raised by union members. The approval process awaits, yet the anticipation for improved labor conditions instills hope for a favorable outcome.
In summary, the Teamsters union and Costco have reached a tentative contract agreement that requires member approval, effectively dodging a strike and highlighting the importance of fair compensation in light of the company’s financial success.