Costco Teamsters Vote To Strike, Challenging Costco's Pro-Worker Stance

Labor Dispute and Union Actions - Over 18,000 Costco employees, represented by the Teamsters, have voted to strike on January 31 due to unresolved labor disputes [1] - The Teamsters and Costco have been in negotiations since mid-December, but 85% of union members voted for a strike after the company rejected proposals for increased seniority pay, paid family leave, bereavement policies, sick time, and safeguards against surveillance [2] - The strike will impact approximately 50 of Costco's 624 U.S. stores, primarily in California, New York, New Jersey, Virginia, and Washington [3] - The Teamsters allege that Costco has expelled union representatives from stores, harassed workers for wearing union buttons, and blocked union updates on in-store bulletin boards during negotiations [4] Financial Performance and Union Demands - Since the Teamsters' current contract in 2022, Costco's revenues have increased by 12%, from $222.7 billion to $249.6 billion, and profits have grown by 26%, reaching $7.4 billion from $5.8 billion [5] - The Teamsters argue that Costco should recognize the contributions of its union members to the company's financial success rather than prioritizing Wall Street shareholders [5] Employee Sentiment and Corporate Culture - Christopher Reed, a Costco employee and Teamster member, expressed dissatisfaction with the company's corporate culture, stating that management has become disconnected and dismissive, prioritizing shareholders over workers [6] - Costco's former CEO Craig Jelinek and current CEO Ron Vachris acknowledged a failure in leadership after workers in Norfolk, VA voted to join the Teamsters, stating they were "disappointed in ourselves as managers and leaders" [9] Compensation and Reputation - Costco is known for its industry-leading pay and benefits, with an average hourly pay rate of about $31 last year, translating to approximately $64,000 annually for full-time employees [8] - Entry-level jobs at Costco start at $19.50 per hour [8] Shareholder Proposal on DEI Policies - Costco faces a shareholder proxy vote regarding its diversity, equity, and inclusion (DEI) policies, with the board unanimously rejecting the proposal and urging shareholders to do the same [7] - The board stated that its DEI efforts help attract and retain employees who contribute to the company's success [8]