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Members of the International Brotherhood of Teamsters, representing more than 18,000 Costco (COST, Financials) workers, have voted to authorize a strike ahead of the Jan. 31 expiration of their collective bargaining agreement.
With reference to unresolved discussions over salaries and benefits, a Teamsters statement claims that 85% of members voted in support of the action.
The Teamsters said in their statement that the strike vote results from the company's inability to make an offer suitable for employees. General Union President Sean M. O'Brien said the vote captures workers' opinion on the topic. According to the union, members would not work over the contract expiration without a new agreement, the statement said.
Director Tom Erickson of the Teamsters Warehouse Division reportedly stated in a statement that the vote on strike authorization is a direct reaction to the way the business handled talks. According to Erickson, Costco's financial success should enable better salaries and benefits; nevertheless, management has not fulfilled the union's expectations.
According to the Teamsters, Costco's most recent fiscal year's net income$7.4 billionalong with $254 billion in sales show a 135% rise over 2018. The union claimed the corporation has not yet agreed to conditions reflecting its expansion and success, despite these financial successes.
Last week, practice picket events were conducted all throughout the country as employees coordinated activities in California, Washington, New York, and other places. According to their statement, the practice pickets were meant to equip members for any strike action.
According to Bryan Fields, a Costco employee and Teamsters Local 570 member from Baltimore, workers have been absolutely crucial for Costco's success. According to the Teamsters' statement, fields said the strike vote shows their shared preparedness to act should their demands go unmet.
This article first appeared on GuruFocus.