Costco's Union Workers Authorize Nationwide Strike
A union representing thousands of Costco employees voted to authorize a strike, paving the way for a work stoppage if the labor group and retailer do not reach an agreement, reports CNBC. Costco Teamsters, the union with 18,000 employees for the retailer nationwide, said 85 percent of members voted to approve the action. The current contract between the Teamsters and Costco is set to expire Jan. 31. The union said in a statement earlier this year that the warehouse club retailer rejected a proposal and called Costco’s counterproposal “insulting,” noting that it didn’t reflect the company’s “historic financial success” and offered no enhancement to retirement benefits. Teamsters will negotiate for a final week with Costco, the union wrote in an X post on Sunday.
Total Retail's Take: After recently being in the news for its strong defense of its diversity, equity and inclusion initiatives, Costco is now in turmoil with union representatives. "From day one, we've told Costco that our members won't work a day past Jan. 31 without a historic, industry-leading agreement," remarked Teamsters General President Sean M. O'Brien. As the retailer reaps record profits, Teamster employees are demanding their benefits keep pace. "Despite these record gains, the company refuses to meet the Teamsters' demands for fair wages and benefits that reflect the company's enormous success," the union stated in a press release.
In addition to disrupting day-to-day operations, a strike could also negatively impact public sentiment around Costco, which has been widely praised for its positive treatment of workers and, more recently, as a defender of diversity and inclusion initiatives.
"We are the backbone of Costco," said Bryan Fields, a Costco worker in Baltimore and member of Teamsters Local 570, in a press release. "We drive its success and generate its profits. We hope the company will step up and do right by us, but if they don't, that's on them. The company will be striking itself."
At the risk of stating the obvious, it would be in Costco's best interest to come to an agreement with union representatives before a strike begins.
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Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.