Teamsters Accuse Costco of Rejecting 98 Percent of Contract Demands

A Costco store in Richmond, Calif., on July 11, 2024. Justin Sullivan/Getty Images

Negotiations for a new worker contract between retail store chain Costco and labor union International Brotherhood of Teamsters could not reach a deal, with the union claiming that the company is not accepting their demands.

Costco’s worker contracts are set to expire on Jan. 31, 2025. On Nov. 11, Costco rejected several proposals made by Teamsters, including policies regarding paid family leave, sick time, safeguards against employee surveillance, and paid time off for employees during the death of their loved ones, according to a Dec. 12 statement from the union.

“By dismissing approximately 98 percent of the proposed provisions, the wholesale giant has signaled a troubling unwillingness to bargain in good faith and is taking an aggressive anti-union stance,” the union said.

If the company fails to present an “acceptable collective bargaining agreement” before the expiry of current worker contracts, more than 18,000 Costco employees will have no option but to strike, the group said.

Teamsters pointed out that Costco is the third biggest retailer globally, with net profits of $6.3 billion last year. The union accused the company of ditching its earlier “pro-worker” reputation to instead prioritize “corporate greed.”

The Epoch Times contacted Costco for comments regarding the Teamsters’ claims but received no reply by publication time.

The union represents 1.3 million workers in the United States, Puerto Rico, and Canada.

Costco has been at odds with the Teamsters on several occasions. On Sept. 4, the company issued a letter to workers accusing a Teamsters press release of propagating false information regarding another contract negotiation involving drivers.

The company claimed that the union’s press release “inaccurately accused Costco of delays and threatened a possible future strike by the drivers.” Costco said it had engaged in a “cordial and respectful” discussion with the union at the time.

Regarding ongoing negotiations, Sean M. O’Brien, the Teamsters’ general president, blamed the company for continuing to “waste time with surface bargaining.” Costco’s actions were “pushing“ the union ”closer to a labor dispute every day,” he said.

The union recently accused the business of not showing up at a scheduled bargaining meeting.

Michele Javier, a Costco worker, claimed their proposal would improve the working conditions of employees and push forward careers.

“We are determined to win the contract we deserve and ready to do whatever it takes to hold Costco accountable,” Javier said.

Labor Complaint, Worker Stoppages

Teamsters recently filed several unfair labor practice charges against the business. It accused Costco of attempting to suppress union activities.

“The company expelled union representatives from stores, harassed and intimidated workers for wearing Teamsters buttons and attire,” it said.

Costco also “sent employees home, and even changed locks on union bulletin boards after the company removed literature and blocked the Teamsters from providing future updates,” it said.

There has been a surge in major work stoppages in the country since 2020, according to data from the U.S. Bureau of Labor Statistics.

A major work stoppage involves at least 1,000 employees and includes worker-initiated strikes and lockouts from employers.

In 2020, eight major work stoppages began, which doubled to 16 in the next, then to 23, and 33 last year.

Major work stoppages involved more than 450,000 employees in 2023. The information sector, including the motion picture industry, saw the highest number of employees taking part in these stoppages, followed by health care and social assistance, educational services, and manufacturing.

Meanwhile, Costco recently reported its first quarter fiscal year 2025 results, with net sales rising by 7.5 percent year over year. The company netted more than $62 billion in revenues. Net income rose to $1.79 billion from $1.58 billion.

Costco operates 897 warehouses worldwide, with the United States accounting for the bulk with 617 facilities. Canada had the second-highest number of warehouses, followed by Mexico and Japan.