'Give a Fair Contract or Else': 18,000 Costco Workers Prepare to Strike Over Pay and Conditions

More than 18,000 Costco workers are preparing to strike unless the company agrees to a contract that reflects its record-breaking profits by 31 January. The Teamsters union, which represents the employees, has accused Costco of rejecting nearly all of its proposals, calling the retailer's stance 'aggressive' and 'anti-union'.

The potential strike could disrupt operations across Costco's 600+ stores in the US, putting pressure on the retail giant amid rising worker activism and corporate profits.

Why Workers Are Threatening to Strike

The Teamsters union has been pushing for a new contract that includes improved paid family leave, seniority rights, increased sick time, and safeguards against workplace surveillance. However, union leaders say that Costco has refused to negotiate in good faith.

According to Teamsters General President Sean M. O'Brien, Costco rejected 98% of the union's proposals, which he called a 'troubling unwillingness to bargain'.

'Costco is known for offering higher wages than competitors, but it is failing to provide contracts that reflect its record profits,' O'Brien stated.

The union has also accused Costco of unfair labour practices, including harassing union representatives and blocking access to facilities, claims that Costco has denied.

Costco's Response: 'We Have a 40-Year Track Record of Fair Bargaining'

Despite the growing tension, Costco executives insist they are committed to reaching a fair agreement with the Teamsters. During a recent earnings call, Costco CEO Ron Vachris told investors that the company values its relationship with the union.

'We have a 40-year track record of dealing fairly with the Teamsters union,' Vachris said, but declined to comment on specific contract negotiations. Costco, which earned £5.9 billion ($7.4 billion) in profits last year, has faced criticism from workers who argue that its soaring revenues should result in higher pay and benefits.

Since the Teamsters' last contract renewal in 2022, Costco's revenues have jumped 12% to £200 billion ($249.6 billion).

Union Mobilisation: Workers Show Strength Ahead of Deadline

In December 2024, Teamsters leaders organised a strike vote, with an overwhelming 85% of members supporting the decision. Ahead of the 31 January deadline, workers have held 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 settle for anything less than a 'historic, industry-leading' agreement.

Costco Faces Pressure as Teamsters Take on Amazon

This showdown with Costco comes as the Teamsters ramp up broader efforts to challenge major retailers, including Amazon.

In December 2024, the union staged a week-long strike against Amazon, affecting nine fulfilment centres. The Teamsters claim to represent nearly 10,000 Amazon workers pushing for higher wages, better benefits, and safer working conditions.

However, Amazon has refused to recognise the Teamsters as an official workforce representative, setting the stage for further conflict.

With just one day left before the 31 January deadline, both Costco and the Teamsters face increasing pressure to reach a deal. If a strike goes ahead, it could cripple warehouse and store operations nationwide, disrupting supply chains and affecting Costco's millions of customers.