Costco workers represented by the Teamsters did not go on strike: negotiators reached a tentative national agreement on February 1, 2025, just after the January 31 contract deadline. The deal initially needed member approval; on April 10, the union said more than 18,000 Costco Teamsters had ratified it.
Did Costco workers go on strike?
No. The threatened strike was averted when the Teamsters negotiating committee and Costco reached a tentative agreement on February 1, 2025. The national master agreement had been due to expire January 31. A strike authorization vote had raised the prospect of a walkout, but authorization was not the same as an actual strike.
On January 19, Reuters reported that 85% of Costco Teamsters had voted to authorize a strike. That vote gave union leaders authority to call one; it did not mean workers had already walked off the job. Reuters reported the authorization vote.
What happened after the January 31 deadline?
Teamsters spokesman Matthew McQuaid confirmed the tentative agreement to the Associated Press on February 1. At that point, members still had to approve it, and details of the terms had not yet been made public. The union later announced ratification: on April 10, 2025, it said more than 18,000 Costco Teamsters had approved the national master agreement. The available reporting establishes that it was ratified, but does not give a percentage of members voting yes.
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The contract term runs from February 1, 2025, through January 31, 2028, according to the union’s final voting document. The Teamsters’ ratification announcement and final voting document provide the union’s account and contract dates.
Who was covered by the agreement?
The Associated Press reported at the time that the Teamsters represented about 18,000 Costco workers in California, Washington, Maryland, Virginia, New Jersey, and New York. AP also reported Costco’s figures of 219,000 U.S. employees and 617 U.S. stores, with the company saying Teamsters coverage applied to fewer than 10% of those stores. These are figures reported in 2025, not current workforce or store counts. The AP report describes the bargaining unit and Costco’s stated coverage.
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What did the Teamsters say the contract included?
The union’s published highlights described the following provisions in the tentative national agreement. These are union-reported terms, rather than a detailed summary from Costco.
- Wages: a total increase of $3 per hour by February 2027 for employees at the top of the wage scale.
- Pension contributions: a 22% increase in the first year, bringing contributions to $2.56 per hour.
- Vacation: six weeks, or 240 hours, of paid vacation for employees with 30 years of service.
- Job premiums: the pharmacy technician premium increased to $3 per hour, and the lead wage premium increased to $2 per hour.
- Workplace protections: expanded shop-steward rights, stronger seniority and discharge protections, and safeguards against surveillance.
The union said these were gains in the agreement; its published highlights of the tentative agreement are the source for the terms above.
Why was a strike being threatened?
The dispute centered on contract negotiations before the existing agreement’s January 31 expiration. Teamsters General President Sean O’Brien argued that the contract should reflect Costco’s financial performance, saying, “Costco Teamsters deserve an industry-leading contract that reflects the company’s massive profits. If Costco thinks they can exploit our members while raking in billions, we’ll shut them down,” according to a union statement.
The Associated Press reported that Costco’s revenue for the fiscal year ending September 1, 2024, was $254 billion and net income was $7.36 billion. Those company figures formed part of the context for the union’s bargaining argument; they do not, on their own, establish what caused the negotiations to take the shape they did. The specific statement above is advocacy from the union president, not a neutral assessment of the dispute. AP reported the financial figures and bargaining context.
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