Costco, Teamsters Reach Tentative Contract Agreement, Avoiding a Strike

Union Reps Confirm Deal, But Details Remain Under Wraps

Teamsters spokesman Matthew McQuaid confirmed the agreement, which will have to be approved by members. Details of the agreement weren’t immediately available. The Associated Press left a message seeking comment with Costco.

The Union’s Concerns

The Teamsters union represents 18,000 Costco workers in six states: California, Washington, Maryland, Virginia, New Jersey, and New York. Overall, Costco has 219,000 U.S. employees and 617 U.S. stores. The company said its labor agreement with the Teamsters applies to less than 10% of those stores.

The union’s top priority was a new contract agreement that reflects Costco’s sales and profit growth. Costco’s revenue rose 5% to $254 billion in its most recent fiscal year, which ended September 1. The company reported net income of $7.36 billion, double its profit in 2019.

What Did the Union Achieve?

“Costco Teamsters deserve an industry-leading contract that reflects the company’s massive profits. If Costco thinks they can exploit our members while raking in billions, we’ll shut them down,” Teamsters General President Sean O’Brien said in a statement.

The Rationale Behind the Strike Vote

On January 20, Teamsters members at Costco voted overwhelmingly in favor of a strike if a new three-year contract agreement wasn’t reached by midnight Friday, when the current contract expired. The union wants a deal that reflects the company’s financial success.

Avoiding Disruption

The tentative agreement avoids a potentially disruptive strike and ensures continued service for customers.

What’s Next?

The agreement now needs to be ratified by the union’s membership. If approved, it would mark the first new contract between the Teamsters and Costco since 2016.

Frequently Asked Questions

Q: What is the significance of the agreement?

A: The tentative agreement avoids a potential strike by the Teamsters union and provides a new contract for 18,000 workers at Costco stores in six states.

Q: What are the key issues behind the strike vote?

A: The union’s top priority is a new contract agreement that reflects Costco’s sales and profit growth.

Q: What does the agreement mean for customers?

A: The agreement avoids disruption to service at Costco stores, ensuring continued operation of the company’s warehouses and delivery services.

Q: Will the agreement impact self-checkout card sharing?

A: No, the agreement is focused on the labor contract between the Teamsters and Costco. The company is still addressing abuse of card sharing at self-checkout counters by doing spot checks.