Costco and the Teamsters union have reached a tentative agreement on a new contract to avoid a potential strike.
The big picture: The Teamsters union represents 18,000 Costco workers across six states: California, Washington, Maryland, Virginia, New Jersey, and New York.
- This agreement applies to less than 10% of Costco’s 617 U.S. stores.
Driving the news: Prior to reaching this agreement, Teamsters members at Costco had voted overwhelmingly in favor of a strike if a new three-year contract was not in place before the expiration of the previous contract.
- Union members aimed for a contract that reflects Costco’s impressive sales and profit growth. Costco saw a 5% revenue increase to $254 billion in the most recent fiscal year, with net income doubling from $7.36 billion in 2019.
What he’s saying: “Costco Teamsters deserve an industry-leading contract that reflects the company’s massive profits. If Costco thinks they can exploit our members while raking in billions, we’ll shut them down,” said Teamsters General President Sean O’Brien in a statement.