Costco and the Teamsters union have reached a tentative agreement to avoid a strike, the union told Business Insider.
The union said the deal would now go to its membership for a vote and that further details would follow.
Costco Teamsters represents 18,000 workers nationwide who were ready to walk off the job after their contract expired at 11:59 p.m. PT Friday.
On January 19, Costco’s unionized workers “overwhelmingly” voted in favor of a strike in their strike authorization vote, which received 85% support among those who voted. In a press release at the time, Costco Teamsters accused the company of failing to “bargain constructively” and propose a contract that “reflects the company’s record-breaking profits.”
“The Costco Teamsters National Negotiating Committee has reached a tentative agreement for a new contract. Additional details will be shared soon. The tentative agreement will be presented to the membership for a vote,” the union, Teamsters, said in a statement.
BREAKING: The Costco Teamsters National Negotiating Committee has reached a tentative agreement for a new contract. Additional details will be shared soon. The tentative agreement will be presented to the membership for a vote. Stay tuned. pic.twitter.com/j65se48Fhg
— Teamsters (@Teamsters) February 1, 2025
Matt McQuaid, a Teamsters spokesperson, told BI on Friday morning that the outstanding issues at the bargaining table were wages, pensions, and increased protections of union rights.
“The Teamsters are committed to securing a fair and reasonable agreement but are prepared to take action if the wholesale giant fails to deliver,” the union previously said in a social media post.
Ahead of Friday’s strike deadline, Costco announced in a memo that its next Employee Agreement, which is set to go into effect in March and covers nonunion workers for three years, would include successive pay raises that push compensation to over $30 an hour for workers at the top of its pay scale.
Costco did not immediately respond to a request for comment from Business Insider, which was made outside regular working hours.
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