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Costco may have won plaudits within HR departments for its recent stance on DEI, but now more than 18,000 Costco workers are preparing to strike if the retailer does not agree to a new contract by January 31.
As tensions rise over wages, benefits, and workplace conditions, the Teamsters union, which represents the employees, has accused Costco of rejecting nearly all of its proposals, describing the company's negotiating stance as “aggressive” and “anti-union."
A walkout could disrupt operations across Costco’s 600-plus locations, putting pressure on the retail giant at a time of increased worker activism and growing corporate profits.
Worker demands and Costco's response
The Teamsters are pushing for improved paid family leave, stronger seniority rights, increased sick time, and protections against workplace surveillance. Union leaders say Costco has refused to negotiate in good faith, rejecting 98% of their proposals.
Sean O'Brien, General President of the Teamsters, criticized Costco’s approach, calling it a “troubling unwillingness to bargain.” He argues that the company's record-breaking profits, some $7.4 billion last year, should translate into better pay and benefits for workers. Costco's revenue has risen 12% since the last contract renewal in 2022, reaching nearly $250 billion.
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Costco CEO Ron Vachris defended the company’s approach, saying: “We have a 40-year track record of dealing fairly with the Teamsters union.”
He declined to comment on specific contract negotiations and the company has also denied allegations of unfair labor practices, including claims that it has harassed union representatives and blocked access to facilities.
Union mobilization
In December 2024, Teamsters members voted overwhelmingly in favor of a strike, with 85% supporting the decision. Ahead of the deadline, workers have staged practice pickets in key locations, including Hayward, California; Sumner, Washington; and Long Island, New York.
O’Brien has made it clear that workers will not accept anything less than an “historic, industry-leading” agreement. The dispute with Costco is part of the Teamsters’ broader push to hold major retailers accountable, most notably including Amazon.
Last month, the union staged a week-long strike at nine Amazon fulfilment centers, advocating for higher wages, better benefits, and safer working conditions. However, Amazon has refused to recognize the Teamsters as an official workforce representative, setting the stage for future labor battles.
If a Costco strike proceeds, it could significantly impact warehouse and store operations nationwide, disrupting supply chains and affecting Costco’s millions of customers.
O’Brien argues that while Costco offers higher wages than some competitors, it must also provide contracts that reflect its financial success. “Workers are the backbone of this company,” he said. “It’s time for Costco to acknowledge that with a fair contract.”
