Teamsters win industry-leading contract with Costco

By Sheri Williams

Costco workers represented by Teamsters reached an industry-leading contract agreement in early February, just as employees were set to go on strike.

The agreement covers about 40 stores in California, including more than a dozen in Northern California. In all, about 10% of Costco workers, or about 18,000 people, belong to the union.

“Costco has two choices: respect the workers who made them a success or face a national strike,” said Teamsters General President Sean M. O’Brien prior to the agreement. “Costco Teamsters deserve an industry-leading contract that reflects the company’s massive profits. If Costco thinks they can exploit our members while raking in billions, we’ll shut them down.”

The new contract gives Costco workers some of the highest pay for retail employees, a goal of the Teamsters negotiating committee.

Prior to the agreement, local Costco workers, including some from Sacramento, held practice picket lines in Hayward, Calif. and Sumner, Wash. to draw attention to the negotiations and send a message of seriousness.

“We’re out here today to send a clear message to Costco that we are ready to do whatever it takes to secure the contract we deserve,” said Jesse Sexton, a Local 150 member and Costco worker in Sacramento, during that practice picket. “None of us wants to strike, but the company is making enormous profits, and all we’re asking for is our fair share. If Costco refuses to present us with an acceptable offer, they’ll be striking themselves.”

On Feb. 1, the union and Costco announced a deal had been reached, though details were not immediately available.

Costco Teamster members had voted to strike on Jan. 20, when their current contract expired. The union was asking for better pay, paid family leave, bereavement policies, sick time and safeguards against surveillance.

Before the deal was announced, Costco said it was raising pay for all employees, with those at the top receiving more than $30 per hour, with a $1 raise in each of the following two years. Wages for entry-level workers were also raised by 50 cents an hour, making starting pay $20 per hour.

That is well above the average pay rate of $16 an hour nationally for retail workers. In California, the minimum wage is higher.

“We have always treated our employees fairly and well throughout the history of our company,” Costco said in a statement.

Teamsters negotiators had argued that Costco continues to earn stellar profits and needed to share them with workers.

“Costco is the third-largest retailer on the planet. They can more than afford to provide the wages and benefits our members are asking for, and the Teamsters are ready to hold them accountable if they fail to do so,” said Tom Erickson, Director of the Teamsters Warehouse Division.

Recently, the company reported annual revenue of $254 billion and net profits of $7.4 billion. That is more than a 130% increase from 2018, when the company reported earnings of $3.1 billion.

Founded in 1903, the International Brotherhood of Teamsters represents 1.3 million hardworking people in the U.S., Canada, and Puerto Rico.