With Contract Deadline Looming, Costco Rejects Fair Proposals and Undermines Negotiations

SAN DIEGO, Jan. 8, 2025 /PRNewswire/ -- Yesterday, Costco executives abruptly ended collective bargaining negotiations with the Teamsters, refusing to engage with a series of fair and practical proposals. This refusal to negotiate highlights Costco's ongoing failure to bargain in good faith and underscores a troubling shift in the company's corporate culture that prioritizes profits over the well-being of its employees.

"Our national negotiating committee is fully committed to securing an agreement with Costco, but the company has shown little interest in working constructively to reach a fair deal," said Teamsters General President Sean M O'Brien. "In the middle of a workday, Costco walked away from the bargaining table. With less than a month until the contract expires, the company should be working overtime to reach a fair agreement — not walking away from negotiations."

Despite reporting record-breaking profits in 2024, Costco has rejected the Teamsters' comprehensive economic proposal. Costco recently announced annual net profits of $7.4 billion — up from $6.3 billion last year and a staggering 135 percent increase from $3.1 billion in 2018. These soaring profits are only possible because of the tireless work of Costco employees, who deserve a contract that reflects their critical role in the company's success. The company has offered a counterproposal that fails to reflect its historic financial success and provides no increased retirement benefits.

"The games Costco is playing at the bargaining table are reckless and shortsighted," said Tom Erickson, Director of the Teamsters Warehouse Division. "Our committee is ready to negotiate every single day. Half-hearted efforts and half-days won't cut it this close to the contract deadline. It's time for Costco to get serious and engage in meaningful negotiations."

The Teamsters represent more than 18,000 Costco workers nationwide. With the Costco Teamsters National Master Agreement set to expire on January 31, workers are demanding a contract that reflects their contributions to the company's success — and they are prepared to strike if necessary.

"Nothing we're asking for is unreasonable. We simply want what we've earned," said John Robledo, a Costco worker in Carson and a Local 572 shop steward. "Corporate needs to step up and deliver for the people who drive its success. A strike is not our goal, but Costco is playing a dangerous game by refusing to negotiate in good faith."

Costco has repeatedly undermined negotiations in recent weeks by canceling scheduled bargaining sessions. Talks between the Teamsters and Costco are set to resume today. While talks are scheduled to resume, the company remains far from offering a proposal that meets the needs of its workers.

Founded in 1903, the International Brotherhood of Teamsters represents 1.3 million hardworking people in the U.S., Canada, and Puerto Rico. Visit Teamster.org for more information. Follow us on Twitter @Teamsters and "like" us on Facebook at Facebook.com/teamsters.

Contact:
Kara Deniz, (202) 497-6610
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SOURCE International Brotherhood of Teamsters