Costco Faces New Accusations

 

Negotiations for a new worker contract between retail store chain Costco and labor union International Brotherhood of Teamsters could not reach a deal, with the union claiming that the company is not accepting their demands.

Costco’s worker contracts are set to expire on Jan. 31, 2025. On Nov. 11, Costco rejected several proposals made by Teamsters, including policies regarding paid family leave, sick time, safeguards against employee surveillance, and paid time off for employees during the death of their loved ones, according to a Dec. 12 statement from the union.

“By dismissing approximately 98 percent of the proposed provisions, the wholesale giant has signaled a troubling unwillingness to bargain in good faith and is taking an aggressive anti-union stance,” the union said.

If the company fails to present an “acceptable collective bargaining agreement” before the expiry of current worker contracts, more than 18,000 Costco employees will have no option but to strike, the group said.

Teamsters pointed out that Costco is the third biggest retailer globally, with net profits of $6.3 billion last year. The union accused the company of ditching its earlier “pro-worker” reputation to instead prioritize “corporate greed.”

The union represents 1.3 million workers in the United States, Puerto Rico, and Canada.

Costco has been at odds with the Teamsters on several occasions. On Sept. 4, the company issued a letter to workers accusing a Teamsters press release of propagating false information regarding another contract negotiation involving drivers.

The company claimed that the union’s press release “inaccurately accused Costco of delays and threatened a possible future strike by the drivers.” Costco said it had engaged in a “cordial and respectful” discussion with the union at the time.

Regarding ongoing negotiations, Sean M. O’Brien, the Teamsters’ general president, blamed the company for continuing to “waste time with surface bargaining.” Costco’s actions were “pushing“ the union ”closer to a labor dispute every day,” he said.

The union recently accused the business of not showing up at a scheduled bargaining meeting.

Michele Javier, a Costco worker, claimed their proposal would improve the working conditions of employees and push forward careers.