The top line
Despite Costco’s claims that it has a stable “caring employee base,” more than 18,000 employees disagree. Costco Teamsters have voted to strike on January 31st.
Costco Teamsters practice strikes in Long Island, New York. Sumner, WA; and San Diego, Long … [+]
Key facts
The Teamsters have been at loggerheads with Costco since last August when the company refused to accept one. Card Check Agreement That would make it easier for non-union Costco workers to join a union — only 8% of its 219,000 U.S. employees are Teamster members.
With its current contract set to expire on January 31, 2025, the Teamsters and Costco began negotiations in mid-December and got nowhere, leading to 85% of Costco union members Voting in favor of the strike after the company rejected proposals for increases in seniority pay, family leave, bereavement policies, sick time and protections against supervision.
Practice strikes in Long Island, New York. Sumner, WA; and San Diego, Long Beach and Hayward, CA.
The pending strike will affect only 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 affected stores in California.
Despite the company’s claims that it is pro-union, Tamers is to blame. that the company kicked union representatives out of stores, harassed and intimidated workers for wearing Teamsters buttons, sent employees home and prevented Teamsters from providing updates on in-store union bulletin boards during negotiations.
Key background
Since Teamster’s current 2022 contract, Costco’s revenue has risen 12%, from $222.7 billion to $249.6 billion, and profit has risen 26%, from $5.8 billion to $7.4 billion.
Instead of recognizing its members’ contributions to the company’s results, the Teamsters said in a statement that Costco “meant to cater to Wall Street shareholders at the expense of workers.”
Important quote
“This is not the Costco I joined 37 years ago. Something has changed, and not for the better. We can all feel the change in corporate culture. Management has become disengaged and disengaged, so much so.” And eroding the respect we once had, top executives have chosen to prioritize corporate shareholders over the workers who drive this company’s success.”
Tangent
Costco is facing a shareholder proxy vote filed yesterday by the National Center for Public Policy Research that asks the company to conduct research and publish a report on the risks of its diversity, equity and inclusion (DEI) policies. is The company’s board has unanimously rejected the proposal and asked shareholders to do the same.
In response to the proposal, the board acknowledged its DEI efforts enable the company to attract and retain employees who help “make our business successful.”
On the contrary
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 wage rate last year was about $31, meaning a full-time employee earns about $64,000 per year. Entry-level jobs start at $19.50 an hour.
After Costco workers in Norfolk, VA voted to join the Teamsters late last year, former Costco CEO Craig Jelinek and current CEO Ron Wichris wrote a joint memo to employees saying we “We’re not frustrated with our employees; we’re frustrated with ourselves as managers and leaders. According to CNN. He claimed that the alliance’s decision was “a failure on our part.”
Costco did not respond to a request for comment.
Further reading
Costco’s unionized workers vote to authorize a nationwide strike. (ABC News, 1/20/2025)
The union says Costco Teamsters voted to authorize a U.S.-wide strike. (Reuters, 1/19/2025)
