Costco rejects union demands as contract deadline looms
Teamsters argue there is a 'fake "worker-friendly" image' at Costco
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Costco rejected a majority of the Teamsters' demands as the deadline to secure a new contract looms.
The Teamsters on Thursday announced that the company rejected 98% of the contract provisions it proposed, including language on seniority, inclement weather, paid family leave, bereavement policies, sick time and safeguards against surveillance.
The group, which rallied in California to protest the company's alleged unfair labor practices and to demand an industry-leading contract, said the move signals an "unwillingness to bargain in good faith" and that the company is "taking an aggressive anti-union stance."
The Teamsters on Thursday announced that Costco rejected 98% of the contract provisions it proposed, including language on seniority, inclement weather, paid family leave, bereavement policies, sick time and safeguards against surveillance. (Justin Sullivan/Getty Images / Getty Images)
The deadline for the new contract is Jan. 31.
"The clock is ticking, and instead of engaging seriously at the bargaining table, Costco continues to waste time with surface bargaining," Teamsters President Sean O’Brien said. "We are committed to good-faith negotiations, but this company is treading dangerous waters. Costco’s actions are pushing us closer to a labor dispute every day."
The protest came after the group already filed unfair labor charges against the company for allegedly expelling union representatives, harassing workers for wearing union buttons and sending employees home, as well as removing literature and changing locks on union bulletin boards.
FOX Business reached out to Costco for comment.
The group also claimed the warehouse giant failed to show up for a scheduled bargaining session with the Costco Teamsters National Negotiating Committee earlier this week.
Negotiations were originally suspended in August after the group said Costco refused to agree to allow nonunion workers to join the Teamsters without facing threats or intimations from management.
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"For too long, Costco has hidden behind a fake ‘worker-friendly’ image," O’Brien said.
He also said that the company prioritizes "Wall Street and executive bonuses" over its people.
"Our message is clear: if you are a ‘worker-friendly’ company, it’s time to stop the bullying, intimidation, and harassment. And if you claim to be ‘pro-worker,’ then prove it at the bargaining table. If management does not get serious, we are ready to fight like hell to get the contract that our members deserve," O’Brien added.
On its website, Costco claimed that it is "often noted for being much more employee-focused than other Fortune 500 companies."
The company also touted that it offers "fair wages and top-notch benefits, the company has created a workplace culture that attracts positive, high-energy, talented employees."
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However, the union argued that the company, which recorded net sales of $78.2 billion in fiscal year 2024, "has strayed from its once strong "pro-worker" reputation, prioritizing corporate greed over workers."
The group is demanding that its contract reflects these "massive profits" and also "holds Costco accountable for its 'pro-worker' claims."