Wholesale Giant Refuses Teamsters’ Economic Proposal as January 31 Deadline Approaches

(WASHINGTON) – The Costco Teamsters National Negotiating Committee has concluded its second week of contract negotiations with Costco, but progress remains stalled. The $420-billion-dollar company outright rejected the Teamsters’ comprehensive economic proposal and failed to provide a counterproposal.

“It’s time for Costco to get serious in negotiations and respect the workers who fuel their billions in profits,” said Tom Erickson, Director of the Teamsters Warehouse Division. “We won’t settle for a penny less than a record-breaking agreement that reflects their worth. And if Costco fails to present an acceptable contract offer, we will not work a day past the January 31 expiration date.”

Costco recently reported annual net profits of $7.4 billion — a sharp increase from $6.3 billion the previous year and a 135 percent increase from $3.1 billion in 2018. Costco employees made these massive profit gains possible, and they deserve a Teamsters contract that reflects their contributions to the company’s success.

“It’s clear Costco is not committed to reaching an agreement in a timely and responsible manner,” said Rick Hicks, Teamsters Western Region International Vice President and Secretary-Treasurer of Local 174. “This is among the most profitable retailers in the world. Costco needs to stop burying its head in the sand and bargain in good faith with the workers who drive their success.”

Costco’s refusal to engage seriously in negotiations demonstrates that it is prioritizing corporate greed over the workers who generate its enormous profits. Last week, Costco undermined negotiations by slashing scheduled bargaining sessions from five days to three – a decision that came just one day after rejecting 98 percent of the union’s non-economic proposals.

The Teamsters represent over 18,000 Costco workers nationwide. Negotiations are set to resume the week of January 6. Despite the looming contract expiration, Costco continues to refuse meetings on Mondays and Fridays.

“Costco needs to understand that my co-workers and I are ready to fight for our fair share of the success we’ve created,” said Anthony Palacios, a Costco worker in Oakland and Local 853 shop steward. “We’re organizing, we’re preparing, and fully ready to hit the streets if Costco ignores our demands.”

Founded in 1903, the International Brotherhood of Teamsters represents 1.3 million hardworking people in the U.S., Canada, and Puerto Rico. Visit Teamster.org for more information. Follow us on Twitter @Teamsters and “like” us on Facebook at Facebook.com/teamsters.

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