Following a credible strike threat, over 150 Costco fleet drivers represented by Teamsters Local 174 have overwhelmingly ratified a short-term first contract. The three-month agreement will expire on the same day as the Costco National Master Agreement, which protects more than 18,000 Costco Teamsters nationwide. By lining up the expiration dates, the group has ensured even greater leverage at the table.
Notably, the new contract replaces the uncertainty of a 401(k) with the stability of a defined-benefit pension plan, ensuring greater security for these Teamsters' future.
"This first contract may only last a few months, but there is no expiration date on the power that new Costco Teamsters will wield in the fight for their future," said Rick Hicks, Secretary-Treasurer of Local 174. "The Western Conference Teamsters Pension Plan honors their years of service, newly negotiated contract language protects their current conditions, and the unified bargaining power of all Costco Teamsters nationwide will pave the way for a brighter future."
Despite its claim of being a "worker-friendly" company, Costco forced the Teamsters to suspend negotiations on a new national contract after refusing to agree to a card-check neutrality agreement that would make it easier for nonunion Costco workers to become Teamsters.
"When we bargain with Costco, we'll do it together from a position of strength," said Tom Erickson, Director of the Teamsters Warehouse Division and Central Region International Vice President. "Our newly organized drivers will have the support of 18,000 Costco Teamsters behind them as we continue the fight in national negotiations. We're committed to negotiating game-changing agreements that set the standard at Costco and hold the company to its 'pro-worker' reputation."
Costco is ranked as the 11th largest U.S. corporation on the Fortune 500, with a reported $242 billion in revenue and $29.7 billion in annual gross profits in 2023. Nationwide, Costco workers face deteriorating working conditions, a trend worsened by the COVID-19 pandemic and shifts in the company's executive leadership. The decline has driven an increased number of nonunion Costco workers to begin organizing with the Teamsters.
"Costco can't have it both ways. A company can't call itself 'worker-friendly' while standing in the way of its workers' right to form a union," said Lynda Linville, a 46-year Costco employee and member of Teamsters Local 542 in San Diego. "In nearly five decades with this company, I've seen a lot of changes in Costco's corporate culture — and none for the better. We're ready to stand together, shoulder to shoulder, to secure the contract we deserve. Together, we will stop the backsliding and protect our nonunion brothers and sisters."
