Costco and Teamsters reach tentative contract agreement, avoid strike

Costco and the Teamsters union have reached a tentative agreement on a new contract, avoiding a strike, the union said Saturday.

Teamsters spokesman Matthew McQuaid confirmed the agreement, which will have to be approved by members. Details of the agreement werenâ€t immediately available. The Associated Press left a message seeking comment with Costco.

The Teamsters union represents 18,000 Costco workers in six states: California, Washington, Maryland, Virginia, New Jersey and New York. Overall, Costco has 219,000 U.S. employees and 617 U.S. stores. The company said its labor agreement with the Teamsters applies to less than 10% of those stores.

On Jan. 20, Teamsters members at Costco voted overwhelmingly in favor of a strike if a new three-year contract agreement wasnâ€t reached by midnight Friday, when the current contract expired.

Union members wanted the Issaquah, Washington, company to make a contract offer that reflects its sales and profit growth. Costcoâ€s revenue rose 5% to $254 billion in its most recent fiscal year, which ended Sept. 1. The company reported net income of $7.36 billion, double its profit in 2019.

“Costco Teamsters deserve an industry-leading contract that reflects the companyâ€s massive profits. If Costco thinks they can exploit our members while raking in billions, weâ€ll shut them down,â€� Teamsters General President Sean Oâ€Brien said in a statement.