Costco workers, represented by the Teamsters union, were poised to strike over demands for better pay and benefits.
The union’s previous contract expired on January 31, 2025, and negotiations with Costco reached a critical point.
The Reasons Behind the Costco Strike
The Teamsters union, which represents 18,000 Costco workers across six states, has been fighting for higher wages, better pensions, and stronger protections for union rights. The workers are pushing for a pay increase that matches the growing profits Costco has seen in recent years.
In 2024, Costco reported $7.36 billion in net income and a 5% increase in revenue to $254 billion. The union argues that, given these strong financial results, workers should receive compensation that reflects the company’s record profits amid rising inflation and living costs.
The Strike Vote
Earlier in January, the Teamsters union organized a vote on whether workers should authorize a strike.
An overwhelming 85% of union members voted in favor of striking if the company did not agree to their demands by the contract expiration deadline.
The Latest Update
As the deadline passed, the two sides reached a tentative agreement on February 1, 2025, which avoided the strike.
Details of the agreement are still being finalized, but the union expressed optimism that it addressed the key issues, including pay, benefits, and worker protections. The contract will now go to union members for ratification.
Why This Matters
The outcome of this dispute is significant. If the strike had occurred, it would have been the largest retail strike in U.S. history and Costco’s first-ever strike.
This event reflects broader labor trends, where workers are increasingly demanding better wages and working conditions from large companies.
While a strike was avoided for now, the labor rights movement in retail will continue to shape the future of worker negotiations at Costco and other major retailers. The resolution of this dispute will be closely watched as a potential model for future labor talks.
