Costco, Teamsters Reach Tentative Contract Deal
Costco Wholesale Corporation (COST) and the Teamsters union have reached a tentative agreement on a new labor contract, averting a potential strike.
The agreement, which must be approved by union members, will cover approximately 18,000 Costco employees across California, Washington, Maryland, Virginia, New Jersey, and New York.
Specific details of the agreement have not yet been disclosed. Costco and the Teamsters have not provided immediate comment.
The Teamsters union represents a small portion of Costco's overall workforce of 219,000 U.S. employees. The company operates 617 stores in the United States.
Union members had previously voted overwhelmingly in favor of a strike if a new contract could not be reached by the expiration of the current agreement on Friday midnight.
The union cited Costco's strong sales and profit growth as a reason for seeking a favorable contract offer. In the most recent fiscal year, Costco's revenue increased by 5% to $254 billion, with net income reaching $7.36 billion.
Teamsters General President Sean O'Brien stated, "Costco Teamsters deserve an industry-leading contract that reflects the company's massive profits. If Costco thinks they can exploit our members while raking in billions, we'll shut them down."