Costco, Teamsters avoid strike, reach tentative contract agreementCostco, Teamsters avoid strike, reach tentative contract agreement

Costco Wholesale and the Teamsters union have reached a tentative agreement on a new contract, avoiding a strike, the union confirmed Tuesday.

“The Costco Teamsters National Negotiating Committee has reached a tentative agreement for a new contract. Additional details will be shared soon. The tentative agreement will be presented to the membership for a vote. Stay tuned,” the Teamsters said in a Facebook post on Saturday. 

Teamsters spokesman Matthew McQuaid confirmed the agreement, which awaits approval by members. McQuaid said details of the agreement would not be available until members have a chance to review them and vote. 

A spokesperson for Issaquah, Wash.-based Costco could not be reached for comment.

The International Brotherhood of Teamsters represents about 18,000 Costco workers in five states, or about 8% of its total U.S. workforce. Overall, Costco has 219,000 U.S. employees and 617 U.S. stores. 

On Jan. 20, Costco Teamsters members voted overwhelmingly in favor of a strike if a new three-year contract agreement wasn’t reached by midnight on Jan. 31, when the current contract expired. 

Eighty-five percent of the union workers approved the strike, and the union said the overwhelming vote resulted from Costco’s failure to present a contract “that reflects the company’s record-breaking profits.” Costco’s revenue rose 5% to $254 billion in its most recent fiscal year, which ended Sept. 1. The company reported net income of $7.36 billion—double its profit in 2019.

Last week, Costco also announced it would raise wages for hourly employees to more than $30 per hour for most store workers. It’s unclear if that move helped avert a strike. The Teamsters had been lobbying for wage increases as well as improvements to retirement benefits, seniority pay, paid family leave, bereavement policies, and safeguards against surveillance.