The Teamsters union, which represents over 18,000 Costco employees across the United States, has voted overwhelmingly to authorize a strike. This decision comes as the current contract between the union and Costco nears its expiration date on January 31. The union has provided Costco management with less than two weeks to finalize a new contract agreement before initiating a strike. A staggering 85% of Teamsters members supported the strike authorization, signaling deep dissatisfaction with the ongoing negotiations.
The union's grievances center around a rejected proposal from Costco, which the union labeled as "insulting." A primary point of contention is the enhancement of retirement benefits, which was notably absent from Costco’s counterproposal. The union argues that these benefits are crucial and that the current offer fails to reflect Costco's "historic financial success." They have been adamant that the new contract should mirror the company’s financial achievements.
"Costco's greedy executives have less than two weeks to do the right thing," – Sean M. O'Brien, general president of Teamsters
Costco has maintained that it treats its employees better than its competitors, though this claim has been disputed by the Teamsters. Preparations for a potential strike are already underway, with the union conducting practice pickets in locations such as San Diego and Long Island, New York. These actions indicate the seriousness with which the union views the situation and their readiness to disrupt day-to-day operations if necessary.
"Costco's greed and blatant disregard for the bargaining process," – Tom Erickson, director of the Teamsters Warehouse Division
The potential strike could significantly affect Costco’s operations and possibly harm its public image. Known for positive treatment of workers and initiatives in diversity and inclusion, a strike might alter public perception. Nevertheless, negotiations will continue for a final week before any strike is enacted.
Despite efforts to reach an agreement, Costco declined to respond to CNBC's request for comment on the situation. Union leaders remain critical of Costco's stance, emphasizing the need for a contract that honors both employees' contributions and the company's financial prosperity.
"If they refuse, they'll have no one to blame but themselves when our members go on strike." – Sean M. O'Brien, general president of Teamsters