The union representing over 18,000 Costco employees nationwide has authorised a potential strike, escalating tensions as the retailer and labour group approach the 31 January deadline for a new contract agreement.
According to the press release, Costco Teamsters members voted to approve the strike action by an “overwhelming” 85% margin. The current agreement, which governs wages, benefits, and other employment terms, is set to expire at the end of January.
Union officials have criticised Costco’s recent counterproposal, with Tom Erickson, Director of the Teamsters Warehouse Division noting, "This strike vote is a direct response to Costco's greed and blatant 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. Management has less than two weeks to fix this — if they don't, they'll face the consequences."
Union members have already conducted practice pickets in locations such as San Diego, California, and Long Island, New York, in preparation for a possible work stoppage. Despite these preparations, the union has confirmed that negotiations will continue into the final week before the contract expiration.
A strike could significantly disrupt Costco’s operations and tarnish its reputation as a company celebrated for its positive treatment of employees and progressive workplace policies.
Last quarter, Costco reported a 7.5% increase in net sales, to US$60.99 billion versus $56.72 billion last year.
Last Friday, Costco (NASDAQ: COST) stock was trading at US$943.2, up 2.6% from Thursday's close of $919.75. The stock reached a day low of $924.57 and a day high of $943.80.
