In a decisive move, over 18,000 Costco employees represented by the International Brotherhood of Teamsters voted 85% to authorize a nationwide strike. This action is motivated by the company’s continued reluctance to participate in constructive negotiating and its refusal to offer a fair contract that reflects its significant financial success. The current Costco Teamsters National Master Agreement will expire on January 31.
The International Brotherhood of Teamsters
Teamsters General President Sean M. O’Brien reinforced the union’s position, saying, “Our members have spoken loud and clear, Costco must deliver a fair contract, or they’ll be held accountable.” He also stated that if an industry-leading agreement is not achieved by January 31, members are ready to strike.
Mock Pickets in Preparation
Costco Teamsters nationwide have set up mock pickets in preparation for possible strike action. Recent demonstrations in Hayward, California; Sumner, Washington; Long Island, New York; and San Diego, California, demonstrated the union’s ability to mobilize.
Union Criticism of Costco’s Approach
Tom Erickson, Director of the Teamsters Warehouse Division, blasted Costco’s negotiating strategy, saying, “This strike vote is a direct response to Costco’s greed and blatant disregard for the bargaining process.” He asked management to make the necessary corrections as soon as possible to prevent more repercussions.
Costco’s Record-Breaking Profits
For the fiscal year 2024, Costco recorded net sales of $249.6 billion, which was 5% higher than the year before. Furthermore, the company’s net income increased by 17% from fiscal year 2023 to $7.37 billion.
The business has not yet complied with the Teamsters’ requests for equitable pay and benefits that correspond with its financial expansion, even in spite of these record-breaking profits.
Workers’ Sentiment
Bryan Fields, a Costco employee in Baltimore and a member of Teamsters Local 570, articulated the workers’ sentiment: “We are Costco’s backbone.” We create its earnings and propel its success. We hope the firm will take responsibility for us, but if they don’t, that’s their fault.”
Awaiting Costco’s Response
As the January 31 deadline approaches, the union and its members are awaiting Costco’s response, emphasizing that the company’s future steps will determine if a strike is necessary.
Author
Tahir Bin Aleem
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