Costco and Teamsters negotiate preliminary contract deal, sidestepping a strike

Costco and the Teamsters union have come to a tentative agreement on a new contract, helping to avert a potential strike, as reported by the union on Saturday.

Teamsters spokesperson Matthew McQuaid verified the news, indicating that the agreement now awaits approval from its members. Specifics of the deal have not been disclosed at this moment. The union has also reached out to Costco for comments but has not received a response yet.

Representing 18,000 Costco employees across six states—California, Washington, Maryland, Virginia, New Jersey, and New York—the Teamsters union plays a significant role in the company’s labor sector. Costco employs a total of 219,000 people in the U.S. and operates 617 stores nationwide; however, the union’s agreement pertains to fewer than 10% of these locations.

Earlier this year, on January 20, Teamsters members at Costco expressed strong support for a strike if the company failed to reach a new three-year contract by the midnight deadline on Friday, when the existing contract came to an end.

Union representatives aimed for Costco—headquartered in Issaquah, Washington—to propose a contract that reflects the company’s growth in sales and profits. The company’s revenue increased by 5% to reach $254 billion in its latest fiscal year, which concluded on September 1, while net income surged to $7.36 billion, marking a doubling of profit since 2019.

“Teamsters at Costco deserve a top-tier contract that mirrors the substantial profits of the company. If Costco believes it can take advantage of our members while profiting immensely, we will take action,” stated Teamsters General President Sean O’Brien.