After weeks of tense negotiations, Costco and the Teamsters union have reached a tentative agreement, averting a potential strike by 18,000 workers. The deal includes pay raises for most hourly employees and will be presented to union members for a vote. This agreement comes amid Costco's continued commitment to DEI policies, a stance that has drawn both praise and criticism.
A potential strike by 18,000 Costco employees represented by the Teamsters union appears less likely after the union announced on Saturday that it had reached a tentative agreement with the grocery chain for a new contract. The negotiations unfolded as Costco maintained its stance on Diversity, Equality, and Inclusion ( DEI ) policies, while many companies have retreated from the controversial initiative.
The Teamsters, in a post on X, stated that the tentative agreement would be presented to the membership for a vote, without disclosing details about the agreement reached with its negotiating committee. Reuters, citing a memo sent to employees this week, reported that Costco plans to increase pay for most U.S. hourly store workers to over $30. The memo outlined a three-year plan to raise hourly pay for top-of-the-scale employees. In the first year, pay will increase by $1 to $30.20, followed by an additional $1 each year for the next two years. Bottom-of-the-scale employees will also receive a 50-cent increase, bringing their hourly wage to $20. This agreement comes after a tense period where Teamsters members at Costco voted overwhelmingly in favor of a strike on January 20 if a new three-year contract agreement wasn't reached by the midnight deadline when the current contract expired. The potential strike would have impacted 50 Costco stores across New York, New Jersey, Virginia, and Washington, representing a fraction of Costco's 617 nationwide stores. Workers sought improved wages, benefits, and work rules amidst the company's record $7.4 billion profit in its most recent fiscal year, ending September 1st. Costco, traditionally known for its pro-worker image, has faced a protracted battle with the Teamsters union, which represents 18,000 out of Costco's 219,000 U.S. workforce. The Teamsters accused Costco of not sharing its record 2024 profits, which doubled since 2019, with its employees and claimed that Costco engaged in 'illegal and reckless behavior,' including barring union representatives from stores, preventing employees from wearing Teamster buttons, and changing locks on union bulletin boards. Talks broke down in January when Costco refused to agree to a card check system, which would have made it easier for workers to join unions by eliminating secret ballots. Approximately 85% of Costco's unionized employees voted to authorize a strike
COSTCO TEAMSTERS STRIKE CONTRACT DEI WAGES BENEFITS LABOR RELATIONS
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