Costco workers could go on strike if contract agreement not reached
Costco workers' contract expires Friday night
The Costco Teamsters National Master Agreement is set to expire on Friday, and negotiations between the Teamsters union and Costco have stalled. The union, which represents 18,000 of Costco’s 219,000 U.S. employees, has accused the retailer of refusing to share its record $7.4 billion in annual profits with workers.
SEATTLE - Costco has until midnight to reach a new agreement with workers, or thousands of employees plan to walk off the job.
What we know:
The Costco Teamsters union, which represents 18,000 of Costco’s 219,000 employees, is demanding higher wages, better benefits, and improved workplace policies. The current labor agreement between the union and the company is set to expire today.
Why you should care:
If a strike occurs, it could impact the price and supply of products at certain warehouse locations. Union leaders have also accused Costco of engaging in illegal and reckless behavior. A prolonged strike could disrupt Costco’s supply chain, potentially causing delays in restocking shelves and leading to price increases.
Last week, union members rallied outside Costco’s corporate headquarters in Issaquah, Washington, calling for a new contract. The strike would affect Costco locations in multiple states, including Washington, New York, New Jersey, and Virginia.
Costco says it is negotiating in good faith and does not expect the dispute to have a material impact on its business. The company stated that a strike would affect fewer than 10% of its U.S. locations.
During a recent earnings call, Costco President and CEO Ron Vachris emphasized the company’s commitment to a fair and timely agreement, citing a 40-year history of working with the union.
The current contract is set to expire at midnight.
The Source: This story is based on information from the Teamsters union.
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