ISSAQUAH, Wash. — Costco Teamsters spent their Thursday rallying outside the company’s corporate headquarters in Issaquah during the company’s annual shareholder meeting.
Employees claim the company isn’t presenting them with a fair contract offer that reflects the record-breaking profits it’s seeing.
In filings with the Securities and Exchange Commission, the company reported net sales increased 8% during the first quarter of 2025, compared to 2024.
The Costco Teamsters National Master Agreement covers over 18,000 workers nationwide. In Washington, the union represents fleet drivers.
The current Teamsters contract is set to expire on January 31.
Earlier this week, the group voted to authorize a strike if an acceptable agreement isn’t reached by that date
A representative from Costco responded the union’s allegations and notice of a possible strike.
“Costco is in negotiations with the Teamsters union regarding the renewal of a collective bargaining agreement that applies to less than 10% of Costco US locations,” the representative wrote. “For several decades we’ve had a good relationship with the union, and we are continuing to negotiate with them in good faith to renew the contract. We have always treated our employees fairly and well throughout the history of our company. Claims the union makes or actions they may take are not expected to have a material impact on Costco’s overall business.”
Union representatives said customers could be affected if a strike were to occur, noting that without Washington’s fleet drivers, deliveries to stores in Washington could be disrupted. That could make it difficult for employees to maintain store shelves.
The representative noted it was “up to Costco” how big of an impact customers saw.
Fleet drivers told KIRO 7 Thursday that the company was not meeting industry standards.
“We get a free membership, and half of us can’t even afford to shop there,” said driver Paul Lowrie. “It’s ridiculous.”
Union representatives said it was hard to say how much an average union member makes at Costco. According to Barron’s, Costco’s average hourly wage was roughly $31 at the end of the last fiscal year, which equates to about $64,000.
In filings with the Securities and Exchange Commission, the company claims achieving long-term goals of increasing employee turnover requires “maintaining compensation levels that are better than the industry average for much of our workforce.”
“I don’t think they are,” Lowrie said. “I really don’t.”
Other drivers told KIRO 7 they wanted to see better benefits and stronger “core values” that support families.
“Some people can’t even go get dental work for their kids or them,” said Robert Campus, a fleet driver.
Campus said none of the drivers rallying wanted to go on strike, but they were prepared to if that’s what it took.
“I think everybody’s nervous,” Lowrie said. “We’re prepared to put our feet in the sand and wait.”
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