Costco Workers Vote To Strike Over Fair Contract Demands

Employees at Costco Wholesale Corp COST have voted overwhelmingly in favor of authorizing a strike due to a deadlock in contract talks with the retailer.

The strike authorization, backed by 85% of the vote, reflects growing frustration over Costco’s unwillingness to provide a fair contract, despite the company's financial success.

The current Costco Teamsters National Master Agreement, which impacts more than 18,000 workers, is set to end on January 31.

"Our members have spoken loud and clear — Costco must deliver a fair contract, or they'll be held accountable," said Teamsters General President Sean M. O'Brien.

Also Read: Analyst Calls Royal Caribbean Stock ‘A Share Gainer’ In $2 Trillion Vacation Industry

To prepare for a potential strike, Costco Teamsters have staged several practice pickets nationwide. Last week, rallies took place in cities like Hayward, California and Sumner, Washington, while Southern California joined the effort by Thursday.

The union has made it clear they are prepared to take action if negotiations do not result in a satisfactory agreement.

"This strike vote is a direct response to Costco's greed and blatant disregard for the bargaining process," said Tom Erickson, director of the Teamsters Warehouse Division. "Costco claims to treat workers better than the competition, but right now, it's failing to live up to that reputation.”

Costco recently reported $254 billion in annual revenue and $7.4 billion in net profits, a 135% increase since 2018.

The company’s first-quarter FY25 sales of $62.15 billion, beat analyst estimates of $62.08 billion, with an  adjusted earnings per share of $3.82, beating analyst estimates of $3.79.

Costco’s sale for December 2024, which included the holiday season, saw a 9.9% to $27.52 billion.

Price Action: COST shares closed higher by 2.55% at $943.19 on Friday.

Read Next: ZYN Nicotine Pouches Receive FDA Marketing Approval

Photo: Shutterstock