while the midnight deadline drew nearer on Friday, thousands of Costco employees readied themselves for a walkout while the corporation and the workers’ union engaged in negotiations.
In addition to a distribution in Washington state, where roughly 150 truckers near Tacoma joined the Teamsters last year, the Teamsters union covers 18,000 Costco employees throughout six states: California, Maryland, Virginia, New Jersey, and New York.
Whether the strikes would result in store closures is uncertain. In the United States, Costco employs 219,000 people and operates 617 shops. Less than 10% of the stores are covered by the company’s labor agreement with the Teamsters.
Although stores in Oregon and southwest Washington are not covered by the Teamsters contract, product supply in the Northwest may be impacted by a strike that affects drivers at the Sumner, Washington, distribution hub.
In the event that a new three-year contract deal is not negotiated by midnight Friday, when the current contract ends, Costco Teamsters members overwhelmingly approved a strike on January 20.
The Issaquah, Washington, corporation must make a contract offer that matches its sales and earnings growth, according to union members. 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.
In a statement, Teamsters General President Sean O. Brien stated that Costco must either honor the employees who contributed to their success or risk a nationwide walkout. Given the enormous profits made by the company, Costco Teamsters should be awarded a contract that leads the industry. We will shut down Costco if they believe they can take advantage of our members and make billions of dollars.
In a statement, Costco stated that it is negotiating in good faith and has enjoyed a positive relationship with the union for many years.
According to Costco, we have always treated our employees fairly and well throughout the course of our business.
— The Associated Press’s Dee-Ann Durbin
This report was contributed to by The Oregonian/OregonLive’s Elliot Njus.
