Union Threatens Costco With Walkout Unless ‘Record-Breaking’ Agreement Signed

A Costco Wholesale retail club in Austin, Texas, on Dec. 12, 2016. Mohammad Khursheed/Reuters

Labor union the International Brotherhood of Teamsters and retail chain Costco have yet to finalize employee contracts, with the union demanding a “record-breaking” deal.

“The Costco Teamsters National Negotiating Committee has concluded its second week of contract negotiations with Costco, but progress remains stalled,” said a Dec. 20 statement from the union. The company rejected the union’s proposal and didn’t come up with an alternative offer, according to the union.

Costco’s employee contracts are scheduled to expire on Jan. 31. Teamsters’ proposal covers several key demands that cover sick time, employee surveillance, paid family leave, and paid time-off to mourn the death of loved ones.

Teamsters accused the company of undermining negotiations by slashing previously agreed-upon bargaining sessions from five days to three. The union said the business had rejected 98 percent of non-economic proposals put forward by the union.

Negotiations are set to restart in the week of Jan. 6.

“We won’t settle for a penny less than a record-breaking agreement that reflects their worth,” said Tom Erickson, director of the Teamsters Warehouse Division. “And if Costco fails to present an acceptable contract offer, we will not work a day past the January 31 expiration date.”

The Epoch Times reached out to Costco for comment on its negotiations with the union.

Back in September, Costco had accused the Teamsters of propagating false information about another employee contract negotiation.

The labor union “inaccurately accused Costco of delays and threatened a possible future strike by the drivers,” the company wrote in a letter to workers at the time. Costco said it had engaged in “cordial and respectful” discussions with the union.

The Teamsters represent more than 18,000 Costco workers across the country. Overall, the union has a membership of over 1.3 million people in the United States, Canada, and Puerto Rico.

Costco recently reported $7.4 billion in annual net profits, up from $6.3 billion the previous year, the union said, adding that the company’s employees “deserve a Teamsters contract that reflects their contributions to the company’s success.”

Amazon Dispute

The Teamsters union is also engaged in an employee contract dispute with Amazon. The union’s Amazon workers began striking on Dec. 16 after the company refused to “bargain with the thousands of Amazon workers who organized with the Teamsters,” said the labor group.

The strikes are taking place at three delivery hubs in Southern California, and one each in San Francisco; New York City; Atlanta, Georgia; and Skokie, Illinois. The Teamsters says its local unions are also putting up picket lines at other Amazon warehouses.

The Teamsters haven’t formally indicated when the actions will end. Vinnie Perrone, the president of a local Teamsters union in metro New York, said Thursday that the walkout would continue for “as long as it takes.”

Amazon says it doesn’t expect the strike to impact its operations, but a walkout—especially one that lasts many days—could delay shipments in some metro areas.

An Amazon spokesperson said Thursday that the company intentionally builds its sites close to where customers are, schedules shipping windows, and works with other large carriers, such as UPS, to deliver products.

“We believe in the strength of our network and plan for contingencies to minimize potential operational impact or costs,” the spokesperson said.

In an interview with Tucker Carlson, Teamsters General President Sean M. O'Brien said that delivery drivers working for Amazon are not the company’s employees.

Instead, the drivers work for a third party that “has to follow the policies and procedures of Amazon, has to buy their vehicles from Amazon.” O’Brien said the Teamsters secured a “decision in California that stated they [Amazon] actually are the employer of these third-party leasing arrangements.”

Amazon spokeswoman Kelly Nantel told The Epoch Times in an earlier emailed statement that the Teamsters are “intentionally” misleading the public.

Employees at Amazon are free to join a union and the company already provides competitive pay as well as other benefits to its workers, she said.

Amazon said people striking outside the company’s facilities were largely not their employees.

“The truth is that the Teamsters have actively threatened, intimidated, and attempted to coerce Amazon employees and third-party drivers to join them, which is illegal and is the subject of multiple pending unfair labor practice charges against the union,” Nantel said.

The Associated Press and Jill McLaughlin contributed to this report.