More than 18,000 workers represented by the International Brotherhood of Teamsters, a prominent labor union, are prepared to strike if Costco Wholesale fails to meet their demands for a new contract. With the current agreement set to expire on Jan. 31, over 85% of union members nationwide voted in favor of authorizing a strike, demanding higher wages, improved benefits, and better working conditions.
Costco, which reported $254 billion in revenue and $7.4 billion in net profits for fiscal 2024, has faced growing criticism from its employees, who argue that the company’s financial success warrants more substantial investment in its workforce.
“Our members have spoken loud and clear—Costco must deliver a fair contract, or they’ll be held accountable,” said Sean M. O’Brien, president of the Teamsters. “From day one, we’ve told Costco that our members won’t work a day past January 31 without a historic, industry-leading agreement.”
Workers Demand Fair Treatment
The Teamsters union represents warehouse workers, truck drivers, and other essential personnel across various industries, including retail. At Costco, union members have been holding practice pickets in preparation for a potential strike, with demonstrations in states such as California, Washington, and New York.
Bryan Fields, a Costco employee in Baltimore, emphasized the importance of fair treatment. “We are the backbone of Costco. We drive its success and generate its profits. If the company doesn’t step up, the responsibility falls on them. They’ll be striking themselves.”
Union leaders accuse Costco of neglecting the bargaining process despite its financial growth. “This strike vote is a direct response to Costco’s greed,” said Tom Erickson, director of the Teamsters Warehouse Division. “Costco has less than two weeks to fix this. If they don’t, they’ll face the consequences.”
Additional Pressure on Costco
The labor dispute comes as Costco also faces criticism over its Diversity, Equity, and Inclusion (DEI) programs. On Jan. 23, shareholders will vote on a proposal to eliminate these initiatives, introduced by the National Center for Public Policy Research, a conservative think tank. The group claims DEI efforts are financially risky and discriminatory.
Costco’s Board of Directors opposes the proposal, stating that DEI initiatives reflect the company’s values and benefit its operations.
What’s Next?
As the Jan. 31 deadline approaches, Costco faces mounting pressure to resolve the contract dispute and avoid a nationwide strike. Whether or not an agreement is reached will depend on the company’s willingness to address the demands of its workers and union representatives.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.
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