Costco, Teamsters reach tentative deal to avert strike, union says

Costco and thousands of its workers represented by the Teamsters reached a tentative deal overnight, averting a looming strike, the union said Saturday.

Teamsters spokesman Matthew McQuaid confirmed the agreement, which will have to be approved by members. Details of the agreement weren't immediately available. The company and local Teamsters units did not immediately respond to requests for comment.

"The Costco Teamsters National Negotiating Committee has reached a tentative agreement for a new contract," the union posted at 5:27 a.m. on its official X account. "Additional details will be shared soon. The tentative agreement will be presented to the membership for a vote."

The Teamsters union represents 18,000 Costco workers in six states: California, Washington, Maryland, Virginia, New Jersey and New York. 

The seller of bulk groceries and other goods has 19 locations in New York, with eight of them on Long Island, according to the retailer's website.

It's unclear if a strike would have closed stores. Costco has 219,000 U.S. employees and 617 U.S. stores. The company said its labor agreement with the Teamsters applies to less than 10% of those stores.

On Jan. 20, Teamsters members at Costco voted overwhelmingly in favor of a strike if a new three-year contract agreement wasn't reached by midnight Friday, when the current contract expired.

Union members say the Issaquah, Washington, company needed to make a contract offer that reflects its sales and profit growth. Costco's revenue rose 5% to $254 billion in its most recent fiscal year, which ended Sept. 1. The company reported net income of $7.36 billion, double its profit in 2019.

"Costco has two choices: respect the workers who made them a success or face a national strike,” Teamsters General President Sean O’Brien said in a statement on Friday. “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.”

Costco said in a statement Friday that it has had a good relationship with the union for several decades and is negotiating in good faith.

“We have always treated our employees fairly and well throughout the history of our company,” Costco said.

With Victor Ocasio and Peter Gill