In This Article:
Members of the labour union Teamsters’ at US Costco Wholesale locations have authorised a strike, with 85% voting in favour.
The decision comes as negotiations over a new national master agreement have reached an impasse.
The current contract, which covers more than 18,000 workers at the wholesale giant, is set to expire on 31 January.
The authorisation indicates that union members are prepared to walk off the job if their demands for an improved contract are not met.
Teamsters general president Sean O’Brien said: "Our members have spoken loud and clear — Costco must deliver a fair contract, or they’ll be held accountable.
"From day one, we’ve told Costco that our members won’t work a day past 31 January without a historic, industry-leading agreement. Costco’s greedy executives have less than two weeks to do the right thing. If they refuse, they’ll have no one to blame but themselves when our members go on strike."
In anticipation of potential industrial action, Costco Teamsters have been organising practice pickets across the country.
These demonstrations serve as both a show of unity among the workforce and a rehearsal for potential strike scenarios.
Teamsters Warehouse Division director Tom Erickson stated: "The strike vote is a direct response to Costco’s greed and blatant disregard for the bargaining process.
"Costco claims to treat workers better than the competition, but right now, it’s failing to live up to that reputation. Management has less than two weeks to fix this — if they don’t, they’ll face the consequences."
Costco operates a total of 897 warehouses worldwide, with 617 in the US and Puerto Rico, and the remainder in countries including Canada, Mexico, Japan and the UK.
It runs e-commerce platforms in Australia, Canada, Japan, Mexico, South Korea, Taiwan, the UK and the US.
Costco's financial performance has been robust in recent years, with the company reporting $254bn in annual revenue and $7.4bn in net profits for the fiscal year ended 1 September 2024.
Despite these profits, the company has not reached an agreement with the Teamsters on wages and benefits.
Costco employee in Baltimore and Teamsters Local 570 Bryan Fields stated: "We are the backbone of Costco. We drive its success and generate its profits. We hope the company will step up and do right by us, but if they don’t, that’s on them. The company will be striking itself."
"Costco Teamsters vote to strike over unfair contract amid record profits " was originally created and published by Retail Insight Network, a GlobalData owned brand.