Strike averted at Costco as Teamsters reach a tentative deal

Core Points - A potential strike involving 18,000 Costco workers was averted with a tentative agreement reached by the Teamsters union just before the deadline [1] - The Teamsters union had previously voted overwhelmingly to authorize a walkout due to stalled contract negotiations, citing Costco's significant profits of $7.4 billion last year [2][3] - The union has demanded substantial wage increases and better benefits, emphasizing that workers would not continue past January 31 without a favorable agreement [2][3] Company Actions - Costco announced pay increases for most store employees, with top scale employees receiving a $1 hourly increase to $30.20, and a commitment to annual $1 increases over the next two years [6] - Employees at the bottom of the wage scale will see a $0.50 increase to $20 an hour [6] - The company's CEO, Rich Vachris, received over $12 million in total compensation in 2024, which has drawn criticism from the union [4] Union Activities - The Teamsters union held practice pickets and rallies outside Costco's headquarters during the company's annual shareholder meeting, where their questions went unanswered [3][4] - Union representatives have accused Costco's negotiators of undercutting workers while corporate executives receive high salaries [4][5] Industry Context - Amidst a trend of large corporations rescinding diversity, equity, and inclusion policies, Costco has maintained its DEI policies despite threats from Republican state attorney generals [7]