Costco Teamsters Approve Strike Amid Stalled Contract Talks, Impact Looms for Retail Giant
January 20, 2025
As of now, Costco has not publicly commented on the union's strike authorization vote, leaving many questions about the company's next steps.
In a broader political context, the Teamsters union has refrained from endorsing presidential candidates Donald Trump and Kamala Harris, citing a lack of commitments to support working people's interests.
A significant development has emerged as the Costco Teamsters, representing 18,000 employees, voted overwhelmingly—85% in favor—to authorize a strike amid stalled contract negotiations.
Sean M. O’Brien, the Teamsters general president, emphasized that members will not work beyond the contract deadline without a fair agreement, holding Costco accountable for the ongoing negotiations.
The current contract is set to expire on January 31, 2025, and workers are demanding higher wages and improved benefits, citing Costco's impressive record profits as justification for their requests.
Earlier in the negotiations, Costco rejected a proposal from the union, which the Teamsters described as 'insulting' and not reflective of the company's financial success.
If a strike occurs, it could disrupt daily operations at Costco and tarnish the retailer's public image, which is typically associated with treating workers well.
In preparation for a potential strike, Teamsters have conducted practice pickets in various locations, including San Diego and Long Island, as they approach the final week of negotiations.
As the January 31 deadline looms, pressure is mounting on Costco to resolve the labor dispute and avert a strike, especially in light of recent strikes at other major retailers.
Disputes in the negotiations include critical issues such as wages, benefits, seniority pay, paid family leave, bereavement policies, sick time, and protections against workplace surveillance.
While the strike authorization has been granted, it does not guarantee that a strike will take place; it is a common tactic used by unions prior to contract deadlines.
Costco reported a staggering $254 billion in revenue and $7.4 billion in profits for the fiscal year ending September 1, 2024, yet has been reluctant to meet the union's demands.
Summary based on 7 sources
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Sources

The Guardian • Jan 20, 2025
Strike authorized against popular US retailer Costco as contract nears expiration
CNBC • Jan 20, 2025
Costco union representing 18,000 workers authorize nationwide strike
Yahoo News • Jan 20, 2025
Strike authorized against popular US retailer Costco as contract nears expiration
CNN • Jan 20, 2025
Teamsters plan strike at Costco on February 1 | CNN Business