Thousands of employees at Costco are on the verge of a potential strike as a midnight deadline approaches on Friday, with negotiations underway between the management and the workers’ union.
The Teamsters union, representing around 18,000 Costco workers across six states—California, Washington, Maryland, Virginia, New Jersey, and New York—has stated that their members are ready to take action if an agreement isn’t reached.
It remains uncertain whether these strikes would lead to the closure of stores. Currently, Costco employs about 219,000 individuals in the United States and operates 617 stores. The company has indicated that the labor contract with the Teamsters applies to a small fraction—less than 10%—of its stores.
Back in January, Teamsters members overwhelmingly voted to authorize a strike if a new three-year agreement was not secured by the established deadline. The current contract is set to expire Friday at midnight.
Union representatives argue that the Issaquah, Washington-based company needs to provide a contract offer that adequately reflects the significant growth in sales and profits the company has experienced. In its latest fiscal year ending on September 1, Costco recorded a revenue increase of 5%, reaching $254 billion, and reported a net income of $7.36 billion—twice the profits seen in 2019.
“Costco is faced with two options: either honor the workers who have contributed to their success or brace for a national strike,” emphasized Teamsters General President Sean O’Brien in a statement. “The workers at Costco deserve a contract that is in line with the impressive profits the company has generated. If Costco believes they can take advantage of our members while accumulating billions, they should prepare for a shutdown.”
In response, Costco stated that it has maintained a strong relationship with the union over the years and is currently negotiating with integrity.
“Throughout our company’s history, we have always treated our employees fairly and with respect,” Costco affirmed.
