Thousands of Costco employees are on the verge of a strike if a new contract is not agreed on.
The big picture: Costco Teamsters voted to authorize a nationwide strike if the new deal is not reached before the current contract expires at the end of the month.
- The vote had 85% of the union members in favor of the strike, signaling strong support for potential work stoppage if Costco fails to meet the demands set forth by the union.
Driving the news: The potential strike could disrupt Costco’s daily operations and affect the public perception of the retailer, which has been recognized for its positive treatment of employees and commitment to diversity and inclusion initiatives.
- Costco had reportedly rejected a proposal from the union, leading to accusations of being greedy by the Teamsters representatives. The counterproposal from Costco was described as “insulting” and inadequate in addressing the workers’ demands.
- Teamsters conducted practice pickets in various locations, including San Diego and Long Island, as preparation for the strike, setting the stage for a potential conflict between the union and the retail giant.
What they’re saying: “Costco’s greedy executives have less than two weeks to do the right thing,” said Teamsters President Sean O’Brien in a statement. “If they refuse, they’ll have no one to blame but themselves when our members go on strike.”
- Tom Erickson, the director of the Teamsters Warehouse Division, said the strike vote is a direct response to Costco’s greed and disregard for the bargaining process.
- “Costco claims to treat workers better than the competition, but right now, it’s failing to live up to that reputation,” Erickson said in a statement. “Management has less than two weeks to fix this – if they don’t, they’ll face the consequences.”