Thousands of Costco union members gear up to go on strike starting February 1, 2025, if a new three-year contract agreement is not reached before the deadline. 
These wage increases would not apply to the 18,000 International Brotherhood of Teamsters members working at Costco. They will have to wait for a new contract.
Background
Costco has been known for its competitive wages and benefits. As a result, they can flaunt much lower turnover rates than most retail companies. But the workers who made the company what it is today have said enough is enough as wages have not fairly reflected Costco’s sales and profit growth over the years. The company’s revenue rose 5% in its most recent fiscal year and its net income has doubled in profit since 2019, amounting to a shocking $7.36 billion.
The Teamsters, one of the largest unions in the country, represent around 8% of the company’s U.S. workers. Costco Teamsters members are pushing for better wages, pension benefits, and expanded union rights protections. The argument is that workers should be rewarded for the chain’s record financial growth.
“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 Teamsters wrote on their social media.
Costco Raises Wages for Non-Union Members Day Before
Coincidentally, the day before the Teamsters plan to strike, Costco announces a $1 raise to its non-union member employees, increasing the hourly pay for top earners to $30.20 an hour. The company also raised the starting wage by $.50, making the hourly pay for new hires $20 an hour.
This 11th-hour announcement seems to support accusations regarding Costco’s willingness to engage in collective bargaining talks fairly. The current Teamsters contract with 50 of the company’s stores expires January 31 at midnight. If a deal is not made, workers will go on strike.
Will the Strike Shut Down Stores?
It remains unclear whether the strikes would lead to stores shutting down. The Teamsters may not have the numbers to make the financial impact required to cripple the colossal company.
Still, if Costco union members go on strike, it will be one of the largest retail strikes in years. Not to mention unionization has had repercussions for shareholders in the past, such as in the recent Starbucks strike.
Political Considerations
Costco is one of the few companies that refused to repeal its Diversity, Equity, and Inclusion (DEI) policies following a proposal issued earlier that month.
Given the political climate surrounding the company, Teamsters may find increased support from government officials who may use the strike as an opportunity to push Costco into revising its DEI policies.
Disparti Law Group Stands By Union Workers
As the proud son of a union family, attorney Larry Disparti, founder of the Disparti Law Group, is ready to stand and fight for all union members. Unionization efforts such as strikes can impact all workers. The bottom line is that Costco workers deserve a fair wage that reflects their contribution to the company’s success.
For all union-side employment matters, contact one of our experienced labor and employment lawyers today. Call (312) 600-6000 for a FREE case review and find out why thousands say… Larry wins!
