A strike that would have seen some 18,000 workers at Costco around the US walk off the job at midnight was averted on Saturday, with the Teamsters union reaching a tentative agreement just before the deadline.
Full terms of the deal have not yet been disclosed publicly.
Teamsters members employed by the retailer voted overwhelmingly to authorize a walkout last month while negotiations over a new contract stalled. Citing Costco’s surging profits, which hit $7.4bn last year, the union has called for significant wage increases and improvements to benefits.
“From day one, we’ve told Costco that our members won’t work a day past January 31 without a historic, industry-leading agreement,” said the Teamsters general president, Sean O’Brien, in statement.
In January the Teamsters announced that members had voted 85% in favor of a strike, with the union holding practice pickets and rallying outside Costco’s headquarters in Washington during the company’s annual shareholder meeting.
The union said their questions submitted to the shareholder meeting went unanswered, accusing the company’s negotiators of “nickel and diming” workers at the bargaining table while the company’s board has approved “outrageous” salaries for corporate executives. The Costco CEO, Rich Vachris, received more than $12m in total compensation in 2024, his first year in the position.
“We’re demanding a contract that matches the success we made possible,” said Paul Lowrie, a Costco fleet driver in Sumner, Washington said in a press release.
Ahead of the proposed strike, Costco announced pay increases for most of its store employees, with $1 an hour increases for top scale employees to $30.20 an hour, and $1 an hour annual increases over the next two years, claiming the pay increases will bring the hourly pay for most store workers to over $30 an hour. Workers on the bottom of the wage scale will receive a $0.50 increase to $20 an hour.
As several large corporations have rescinded their diversity, equity, and inclusion policies as Trump has taken office, including Walmart, McDonald’s and Target, Costco has defended its DEI policies. Republican state attorney generals have threatened the company for doing so.
