Costco, Teamsters Reach Tentative Deal
The Teamsters Union has reached a tentative agreement with Costco (NASDAQ: COST) that keeps the warehouse club's workers as among the highest-paid retail employees in the country with the best benefits.
The tentative three-year agreement provides for an improved grievance procedure, wage increases for each year of the contract and strengthened seniority language. The ballots for the tentative agreement will be counted on Feb. 19. The current three-year contract expires on Jan. 31.
"Costco employees know that being a Teamster means strong representation at the bargaining table, and this new agreement is the proof," said Teamsters General President Jim Hoffa. "Costco is a good example of a thriving company that is powered by a strong union workforce, which shares in its success."
The Teamsters Union represents almost 15,000 Costco workers at 55 locations in California, New York, New Jersey, Maryland and Virginia. Costco's average pay is more than 42 percent higher than its rival Sam's Club, which is owned by Walmart. Costco's unionized workforce, with strong wages and benefits, results in low turnover and higher-skilled employees at the company.
"Costco Teamsters work hard to keep this retailer strong," said Rome Aloise, Teamsters International Vice President who led negotiations with the company. "We are proud of the bargaining committee's work in achieving this strong tentative agreement with Costco."
Teamsters at Costco are part of the Teamsters Warehouse division which, represents more than 250,000 employees at retailers and in warehouse facilities across the country.
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