A union representing thousands of Costco
employees voted to authorize a strike, paving the way for a work stoppage if the labor group and retailer do not reach an agreement.
Costco Teamsters, the union with 18,000 employees for the retailer nationwide, said 85% of members voted to approve the action. The current contract between the Teamsters and the wholesaler is set to expire Jan. 31.
“Costco’s greedy executives have less than two weeks to do the right thing,” Sean O’Brien, general president of Teamsters, said in a statement. “If they refuse, they’ll have no one to blame but themselves when our members go on strike.”
A strike could hamper day-to-day operations at the well-known retailer. It could also impact public sentiment around Costco, which has become known for its positive treatment of workers and, more recently, as a defender of diversity and inclusion initiatives.
Teamsters will negotiate for a final week with Costco, the union wrote in an X post on Sunday. The union ran practice pickets in preparation for a potential strike last week in locations including San Diego and Long Island, New York.
The union said in a statement earlier this year that Costco rejected a proposal and called Costco’s counterproposal “insulting,” noting that it didn’t reflect the company’s “historic financial success” and offered no enhancement to retirement benefits.
“This strike vote is a direct response to Costco’s greed and blatant disregard for the bargaining process,” Tom Erickson, director of the Teamsters Warehouse Division, said in a press release. “Costco claims to treat workers better than the competition, but right now, it’s failing to live up to that reputation. Management has less than two weeks to fix this — if they don’t, they’ll face the consequences.”
Costco did not respond immediately to CNBC’s request for comment.
