(WASHINGTON) – Teamster local unions on the East Coast and in California that represent 16,000 Costco members are recommending a rejection of a contract proposal that was characterized as Costco’s last, best and final offer. 

The main issue of disagreement is the company’s refusal to allow their East Coast members to move into the same defined benefit pension plan as the California members. 

Costco Teamsters on the East Coast are part of a company 401(k), while Teamsters in California have a defined benefit pension plan with the Western Conference of Teamsters Benefit Trust, the largest Taft-Hartley plan in the nation. The California members are seeking a higher company contribution to the plan.

“While we believe the wage offer is adequate in most cases, our members at Costco made it clear that those in our pension plan wanted more contributed into it, and our members in the East want to move into the plan. We cannot recommend an offer that refuses to deal with this issue,” said Rome Aloise, International Vice President and chief negotiator. 

The ballots are being mailed this week and will be counted at the end of the month.

Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter @Teamsters and “like” us on Facebook at www.facebook.com/teamsters.

 

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