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A strike was narrowly avoided at Costco after the Teamsters reached a tentative agreement with the company.

A strike was narrowly avoided at Costco after the Teamsters reached a tentative agreement with the company.

A strike was narrowly avoided at Costco after the Teamsters reached a tentative agreement with the company. The deal, which still needs final approval, has resolved key issues that could have led to a walkout, ensuring continued operations at the retail giant. This agreement marks a significant moment in the ongoing labor discussions, as workers secure better terms without resorting to a strike.

A potential strike that would have seen around 18,000 Costco workers across the U.S. walk off the job at midnight was averted on Saturday when the Teamsters union reached a tentative agreement just in time.

While the full details of the deal are yet to be made public, the union had previously voted overwhelmingly to authorize a strike, citing Costco’s massive profits, which totaled $7.4 billion last year. The Teamsters have been pushing for significant wage hikes and better benefits to reflect those profits.

“We’ve told Costco from the start that our members wouldn’t work a day past January 31 without a historic, industry-leading deal,” said Teamsters General President Sean O’Brien. The union had also made headlines last month, when 85% of its members voted in favor of a strike. They rallied outside Costco’s headquarters and held practice pickets to make their stance clear.

The union accused Costco of shortchanging workers while approving lavish pay for corporate executives, such as CEO Rich Vachris, who earned over $12 million in 2024 alone. “We’re demanding a contract that matches the success we’ve made possible,” said Paul Lowrie, a Costco fleet driver.

Before the strike was set to begin, Costco had announced pay increases, raising wages by $1 per hour for top-scale employees, pushing their pay to $30.20 an hour, with more raises planned over the next two years. Workers on the lower end of the pay scale are getting a $0.50 increase to $20 an hour.

As big corporations like Walmart, McDonald’s, and Target have rolled back their diversity, equity, and inclusion policies under pressure, Costco has stood firm in defending its DEI practices, even facing threats from Republican state attorneys general for doing so.

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