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Costco workers in five states move to strikeCostco workers in five states move to strike

Teamsters union says they want a contract the reflects the retailer’s record-breaking profits

Bill Wilson, Senior editor at Supermarket News

January 21, 2025

2 Min Read
The front of a Costco store.
Eighty-five percent of the union workers approved to strike.Getty Images

Costco Teamsters, representing 18,000 workers across five states, have authorized a strike, the International Brotherhood of Teamsters announced on Sunday. 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.” 

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The move follows some progress made about two weeks ago, according to the union, but the two sides remain “far apart on economic issues,” the union said in a press release. The Teamsters say Costco had a 135% increase in profits in 2024, and they want a cut of that profit. In addition to a fair wage increase and improvements to retirement benefits, the union also wants seniority pay, paid family leave, bereavement policies, sick time, and safeguards against surveillance.

Costco has not responded to a request for comment.

By the numbers

  • The union’s contract with Costco officially expires on Jan. 31

  • Practice pickets were organized in Hayward, Calif.; Sumner, Wash.; San Diego; and Long Island, N.Y., last week

  • The Teamsters covered by the Costco national contract represent up to 8% of the 219,000 workers in 616 Costco stores

  • 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

  • Last year, Costco raised 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 increased to $130 annually

Related:King Soopers, City Market workers could vote to strike after contract talks break down

In their own words

“Our members have spoken loud and clear—Costco must deliver a fair contract, or they’ll be held accountable. From day one, we’ve told Costco that our members won’t work a day past Jan. 31 without a historic, industry-leading agreement.” —Teamsters General President Sean O’Brien

 

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About the Author

Bill Wilson

Senior editor at Supermarket News

Bill Wilson is the senior editor at Supermarket News, covering all things grocery and retail. He has been a journalist in the B2B industry for 25 years. He has received two Robert F. Boger awards for his work as a journalist in the infrastructure industry and has over 25 editorial awards total in his career. He graduated cum laude from Southern Illinois University at Carbondale with a major in broadcast communications.

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