Costco workers are still without a new contract as deadline looms

The union representing 18,000 Costco workers says executives at the warehouse retailer “abruptly ended” collective bargaining negotiations on Wednesday.

The Costco Teamsters National Master Agreement is set to expire on Jan. 31, and workers are seeking a contract that reflects their contributions to the company’s success, according to the International Brotherhood of Teamsters.

Negotiations were expected to continue on Thursday. Costco has not responded to a request for comment.

“Our national negotiating committee is fully committed to securing an agreement with Costco, but the company has shown little interest in working constructively to reach a fair deal,” said Teamsters General President Sean O’Brien. “With less than a month until the contract expires, the company should be working overtime to reach a fair agreement, not walking away from negotiations.”

The union has submitted what it calls a comprehensive economic proposal reflecting a 135% increase in profits but claims Costco’s counter proposal does not include a fair wage increase or improvements to retirement benefits.

Costco is also refusing to meet for scheduled bargaining sessions and has reduced talks from five days a week to just three, according to the Teamsters.

Costco reported net sales of $27.52 billion in December, marking a 9.9% year-over-year increase. Comparable sales in the U.S., excluding the effects of changes in gasoline prices and foreign exchange, rose by 9.8%.

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The Issaquah, Wash.-based retailer also set records during the first quarter of 2025. Net sales increased 7.5% year-over-year, reaching $60.99 billion, and comparable sales in the U.S. were 7.2% higher than in Q1 2024, excluding the effects of gas prices and foreign exchange.

Costco opened its 897th warehouse during the quarter and achieved the highest-ever opening-day sales of $2.9 million.

Additionally, the U.S. pharmacy business exceeded prescription growth of 19% for the first quarter, setting volume records, and Costco Logistics completed nearly 1 million deliveries, marking another milestone.

Costco also increased membership dues for the first time since 2017. On Sept. 1, the basic membership fee rose to $65 per year, while Costco’s Executive Membership jumped to $130 annually.

The fee increase had not fully taken effect during the first quarter of 2025, but the warehouse retailer still brought in $1.166 billion, an increase of $84 million (7.8%) year-over-year.