Costco Faces Potential Historic Strike as Negotiations Continue
About 18,000 Teamsters workers are set to strike at 56 Costco locations across six states starting early Saturday unless a last-minute agreement is reached. If it happens, this would be the largest retail strike in U.S. history.
Negotiations resumed Thursday, but no updates have been provided. The dispute extends beyond wages and benefits, with the union also demanding better seniority pay, paid family leave, bereavement policies, sick time, and protections against workplace surveillance.
The strike would impact a small fraction of Costco’s 616 U.S. stores, but it could have significant consequences in the largely nonunion retail sector, where less than 5% of workers are unionized. The affected stores, located in California, Maryland, New Jersey, New York, Virginia, and Washington, have not been publicly identified. Despite the strike, Costco has assured customers that all locations will remain open, relying on management and nonunion staff.
The Teamsters also plan to establish picket lines at nonunion Costco stores nationwide, increasing pressure on the company. While only 18,000 Costco workers are unionized, the Teamsters have over 1 million members who could support the strike.
Costco’s Reputation and Financial Strength
Costco is known for paying above-average wages and benefits. In its latest financial report, the company emphasized its commitment to employee satisfaction and reducing turnover rather than minimizing labor costs.
In 2023, when workers at a Costco store in Roanoke, Virginia, voted to join the Teamsters, the company’s leadership expressed disappointment—not in employees, but in their own failure to prevent the need for unionization.
The Teamsters argue that Costco’s record profits justify improved wages and benefits. The company reported a record $7.4 billion in net income last fiscal year, up 17% from the previous year and nearly double its 2019 earnings. At a recent union rally, workers held signs demanding fair treatment, citing the company’s strong financial performance.
“Costco must choose: respect the workers who built their success or face a national strike,” said Teamsters President Sean O’Brien. “If they think they can exploit us while making billions, we’ll shut them down.”
Potential Political and Economic Impact
Costco recently announced a $1 hourly wage increase for nonunion employees, with additional raises planned over the next two years. Some analysts believe this is a strategy to prevent further unionization.
Political factors could also influence the strike. O’Brien has maintained close ties with former President Donald Trump, while Costco continues its diversity, equity, and inclusion (DEI) initiatives—something Trump has criticized. Some experts believe Trump may publicly support the union to apply pressure on Costco.
Retail analysts suggest the strike may not last long, as most retail labor strikes are resolved quickly. A previous strike at Stop & Shop in 2019 lasted 11 days, and last year, the Teamsters held a five-day strike at Amazon.
While the financial impact on Costco may be limited, a successful union victory could encourage more workers across the company to organize, potentially reshaping labor relations in the retail industry.
