(SAN DIEGO) – Despite reporting record-breaking profits in 2024, Costco has rejected the Teamsters’ comprehensive economic proposal. Instead, the wholesale giant offered an insulting counterproposal that fails to reflect its historic financial success and provides no increased retirement benefits — a shameful disregard for the hardworking employees who make the company’s success possible.
“Costco executives are padding their pockets while trying to leave workers behind,” said Teamsters General President Sean M. O’Brien. “The Teamsters are not impressed with the company’s arrogance at the bargaining table. Record profits demand record contracts. If Costco doesn’t get serious about respecting its employees, this company will own any labor dispute it forces come February 1.”
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.
“This isn’t complicated — a 135 percent increase in profits should translate to significant wage increases,” said Tom Erickson, Teamsters Warehouse Division Director. “Costco is putting profits ahead of workers. When a company is this rich, that success belongs to the people who make it happen and not some executives sitting comfortably inside corporate offices.”
The Teamsters represent over 18,000 Costco workers nationwide. The Costco Teamsters National Master Agreement expires January 31. Costco Teamsters are demanding the strongest possible contract and are prepared to strike if the company fails to deliver.
“No one wants to strike, but if Costco continues to insult us with unrealistic and disrespectful wage proposals, we will have no choice,” said Ed Swank, a Costco worker in San Diego and Teamsters Local 542 shop steward. “If we’re forced to the picket line because of this company’s greed, Costco will only be striking itself. The damage to its once proud, ‘pro-worker’ reputation will be irreparable unless the company gets serious at the bargaining table.”
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.
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