Tentative Contract Secured Between Costco and Teamsters, Averting Strike

Costco and the Teamsters union have tentatively settled on a new contract, according to a union announcement on Saturday.

Matthew McQuaid, a spokesperson for the Teamsters, confirmed that the accord still requires approval from its members. Specifics of the agreement remain undisclosed as of now. The Associated Press reached out to Costco for remarks.

The Teamsters union stands for 18,000 Costco employees spread over six states: California, Washington, Maryland, Virginia, New Jersey, and New York. Costco employs a total of 219,000 individuals across 617 locations in the United States. The labor contract negotiation with the Teamsters encompasses less than 10% of these stores.

Earlier, on January 20, a large majority of Teamsters at Costco signaled their readiness to strike if no new three-year agreement was reached by the deadline of midnight Friday, coinciding with the expiration of the current contract.

Union members demanded that Costco in Issaquah, Washington extend a contract offer that mirrors the company's sales and profit uptick. In the most recent fiscal year, ending September 1, Costco's revenue saw a 5% increase to $254 billion, with net earnings soaring to $7.36 billion, doubling figures from 2019.

"Teamsters at Costco merit a leading contract in the industry that aligns with the company's substantial earnings," stated Sean O'Brien, General President of the Teamsters, emphasizing readiness to halt operations should Costco continue to prioritize profits over its workforce.