Union Workers at Costco Vote for Nationwide Strike

The Costco logo is displayed on the exterior of a Costco store in Richmond, Calif., on July 11, 2024. Justin Sullivan/Getty Images

Costco employees affiliated with the International Brotherhood of Teamsters labor union are threatening to strike across the United States,  as employment contracts are set to expire by month-end.

“Costco Teamsters nationwide have voted by an overwhelming 85 percent margin to authorize a strike,” said a Jan. 20 statement from the union. “The vote is a direct result of the company’s continued failure to bargain constructively and refusal to present a fair contract offer that reflects the company’s record-breaking profits.”

The current employee contract, covering more than 18,000 Costco workers, is scheduled to expire on Jan. 31.

Last week, Costco Teamster members across the country took part in practice picketing to prepare for the upcoming strike, the union said. Hundreds of members from Hayward, California; Sumner, Washington; Long Island, New York; and San Diego took part in these events.

Costco’s 52-week fiscal year net sales totaled nearly $250 billion, with the company making almost $7.4 billion in net income, which was a 135 percent jump from 2018, the Teamsters said.

Despite these gains, Costco declines to pay workers “fair wages and benefits” reflecting the success achieved by the company, the labor group stated.

“Our members have spoken loud and clear—Costco must deliver a fair contract, or they’ll be held accountable,” Teamsters General President Sean M. O’Brien said in the statement.

“From day one, we’ve told Costco that our members won’t work a day past Jan. 31 without a historic, industry-leading agreement. Costco’s greedy executives have less than two weeks to do the right thing. If they refuse, they’ll have no one to blame but themselves when our members go on strike.”

The union represents 1.3 million members across the United States, Puerto Rico, and Canada.

The Epoch Times reached out to Costco for comment.

Costco and the Teamsters have previously been in conflict. In September 2024, Costco blamed the union for spreading false information related to another employee contract negotiation.

At the time, the company sent a letter to employees saying that the Teamsters “inaccurately accused Costco of delays and threatened a possible future strike by the drivers.”

Profits and Union Issues

Costco recently reported its first-quarter earnings for fiscal year 2025.

Revenues for the 12 weeks ending Nov. 24, 2024, came in at $62.15 billion, up 7.5 percent from the same period last year. Net income jumped by more than 13 percent to almost $1.8 billion.

Costco has registered year-over-year revenue growth for the past 10 quarters. In nine out of the previous 10 quarters, the company has also seen a positive year-over-year growth in net income.

Costco shares have risen by more than 36 percent over the past year and were trading at $943 by the close of trading on Jan. 17.

Costco is also facing criticism over its diversity, equity, and inclusion (DEI) practices. Conservative think tank National Center for Public Policy has asked shareholders and the board of directors to end such policies at the company, citing discriminatory consequences of these actions.

“It’s clear that DEI holds litigation, reputational and financial risks to the Company, and therefore financial risks to shareholders,” the center said in its proposal to Costco.

“With 310,000 employees, Costco likely has at least 200,000 employees who are potentially victims of this type of illegal discrimination because they are white, Asian, male, or straight.”

However, Costco’s board called on shareholders to reject the proposal, saying diversity brings “originality and creativity to our merchandise offering.”

Meanwhile, the Teamsters union has succeeded in getting another group of retail sector employees to their side—workers from the Kroger warehouse in Las Vegas—according to a Jan. 17 statement from the union.

In total, more than 120 workers voted to join the Teamsters, to negotiate for higher wages, job security, better working conditions, and retirement benefit guarantees, the union stated.

“We are building momentum at Kroger and across the entire warehouse industry,” said Tom Erickson, director of the Teamsters Warehouse Division.

“Kroger workers know that the only way to achieve fair treatment, strong protections, and a voice on the job is by becoming Teamsters. We’re committed to organizing more workers at this company and throughout the industry to ensure they get the respect they deserve.”