The Teamsters union announced on Saturday that it and Costco had struck a provisional agreement on a new contract, preventing a walkout.
The agreement must be approved by members, according to Teamsters spokesperson Matthew McQuaid. The agreement’s specifics were not immediately accessible. The Associated Press messaged Costco to request comment.
18,000 Costco employees throughout six states—California, Washington, Maryland, Virginia, New Jersey, and New York—are represented by the Teamsters union. In total, Costco employs 219,000 people in the US and operates 617 shops. Less than 10% of the stores are covered by the company’s labor agreement with the Teamsters.
In the event that a new three-year contract deal was not negotiated by midnight Friday, when the current contract ended, Costco Teamsters members overwhelmingly approved a strike on January 20.
The Issaquah, Washington-based corporation was asked by union members to submit a contract offer that reflected its growth in sales and profits. In its most recent fiscal year, which concluded on September 1, Costco’s revenue increased by 5% to $254 billion. The business doubled its earnings in 2019 with a reported net income of $7.36 billion.
Given the enormous profits made by the company, Costco Teamsters should be awarded a contract that leads the industry. In a statement, Teamsters General President Sean O. Brien said, “We will shut down Costco if they believe they can take advantage of our members while making billions.”
— The Associated Press’s Dee-Ann Durbin
