Three-Year Agreement Secures Major Gains in Wages, Pension, and Job Protections

(SUMNER, Wash.) – More than 150 Costco fleet drivers and MDO logistics workers represented by Teamsters Local 174 have overwhelmingly ratified a powerful new three-year agreement that locks in major economic and workplace gains. The deal builds on the recently ratified Costco Teamsters National Master Agreement while securing additional protections tailored to the unique needs of fleet and MDO workers.

“This group faced an uphill battle to get here,” said Rick Hicks, Teamsters Western Region International Vice President and Secretary-Treasurer of Local 174. “They powered through a tough organizing fight, a hard-won first contract, and now this strong follow-up agreement. Their determination never wavered, and now they have a contract that will truly improve their lives and shows the strength of organizing with the Teamsters.”

Costco’s Sumner fleet drivers made history as the first-ever Costco distribution center workers to unionize with the Teamsters. Their new agreement delivers substantial wage increases, replaces the uncertainty of a 401(k) with a defined benefit pension, strengthens seniority rights, and ends at-will employment through a just cause standard and grievance procedure.

“We’re raising the bar at Costco and across the warehouse industry,” said Tom Erickson, Director of the Teamsters Warehouse Division. “This contract delivers real, lasting improvements for these workers, and it sends a clear message to nonunion Costco distribution workers that the Teamsters can deliver the protections and respect they deserve.”

Costco is the 11th largest U.S. corporation on the Fortune 500, generating $249.6 billion in annual revenue and over $7.3 billion in profits. While the company grows richer, Costco workers nationwide are organizing with the Teamsters to claim their fair share. Recently, over 18,000 Costco Teamsters ratified a new national master agreement that secured large wage increases, a 22 percent boost in pension contributions, and more than 40 critical language improvements, including stronger seniority rights, vacation benefits, shop steward protections, and new safeguards against surveillance.

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 X @Teamsters and on Facebook at Facebook.com/teamsters. 

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