Costco has a reputation as a benevolent employer paying above-average wages and providing liberal benefits to maintain a stable and productive workforce and to project a favorable image to customers.
The Teamsters Union representing 18,000 workers nationwide is now in active conflict with the Company. Following allegations that Costco was violating federal law and attempting to undermine the collective bargaining process, the Teamsters filed charges of unfair labor practices against the Company. This is considered to be standard procedure, along with demonization of management and company policies leading up to negotiations. To stimulate involvement among ‘rank-and-file’ union officials organized a rally on December 10th in Long Beach, CA. The Teamsters maintain that the worker friendly orientation of the company has deteriorated as Management is influenced by concerns over profitability.
The National Master Agreement between the Teamsters Union and Costco will expire on January 31, 2025, and accordingly the Union is establishing a strong base for collective bargaining. The Teamsters contend that Costco has rejected 98 percent of a series of proposed conditions to be considered. These include seniority, paid family and bereavement leave, workplace surveillance and freedom from harassment over union activities.