Despite Costco claims it has a stable “cared-for employee base,” over 18,000 employees disagree. Costco Teamsters have voted to strike on January 31.
Costco Teamster practice strikes have been held in Long Island, NY; Sumner, WA; and San Diego, Long ... [+]
The Teamsters have been at loggerheads with Costco since last August after the company refused to accept a card check agreement that would make it easier for nonunion Costco workers to join the union – only 8% of its 219,000 American employees are Teamster members.
With its current contract to expire on January 31, 2025, the Teamsters and Costco began negotiations in mid-December and have gotten nowhere, leading to 85% of Costco union members to vote for a strike after the company rejected proposals for increased seniority pay, paid family leave, bereavement policies, sick time and safeguards against surveillance.
Practice strikes have been held in Long Island, NY; Sumner, WA; and San Diego, Long Beach and Hayward, CA.
A pending strike will impact only about 50 of the company’s 624 U.S. stores located in five states, including New York, New Jersey, Virginia and Washington, with the largest share of impacted stores in California.
Despite company claims it is pro-union, the Teamsters allege that the company expelled union representatives from stores, harassed and intimidated workers for wearing Teamsters buttons, sent employees home and blocked the Teamsters from providing updates on in-store union bulletin boards during negotiations.
Since the Teamster’s current 2022 contract, Costco revenues have increased 12%, from $222.7 billion to $249.6 billion, and profits have grown 26%, reaching $7.4 billion from $5.8 billion.
The Teamsters ask that Costco recognize the contribution of its members to company results instead of “catering to Wall Street shareholders at the expense of workers,” the Teamsters said in a statement.
"This is not the Costco I joined 37 years ago. Something has changed, and not for the better. We can all feel the shift in the corporate culture. Management has become disconnected and dismissive, eroding the appreciation and respect we once had. The top executives have chosen to prioritize corporate shareholders over the very workers who drive this company's success."
Costco faces a shareholder proxy vote tomorrow submitted by the National Center for Public Policy Research asking the company to conduct research and publish a report about the risks of its diversity, equity and inclusion (DEI) policies. The company’s board has unanimously rejected the proposal and asks shareholders to do the same.
In its response to the proposal, the board acknowledges its DEI efforts enable the company to attract and retain employees who help “our business succeed.”
Costco has a reputation as one of the best employers in the retail industry with industry-leading pay and benefits. Barron’s reports Costco’s average hourly pay rate was about $31 last year, meaning a full-time employee makes around $64,000 per year. Entry level jobs start at $19.50 per hour.
After Costco workers in Norfolk, VA voted to join the Teamsters late last year, Costco former CEO Craig Jelinek and current CEO Ron Vachris wrote a joint memo to employees stating we are “not disappointed in our employees; we’re disappointed in ourselves as managers and leaders,” according to CNN. They claimed the decision to unionize “constitutes a failure on our part.”
Costco did not respond to a request for comment.
Costco's unionized workers vote to authorize nationwide strike (ABC News, 1/20/2025)
Costco Teamsters vote to authorize US-wide strike, union says (Reuters, 1/19/2025)