Costco – market cap: $438.4 billion – is outperforming Wall Street earnings estimates, but the company has a problem on its hands with its workers.
The current contract covering more than 18,000 Costco Teamsters expires on Jan. 31, and the union said on Friday that Costco is undermining contract negotiations by refusing to meet for scheduled bargaining sessions.
“Our members show up to work every single day, but Costco’s greedy, lazy corporate executives can’t be bothered to show up for negotiations,” said Teamsters General President Sean M. O’Brien. “The Costco National Negotiating Committee is at the table and ready to bargain. Costco’s delays show blatant contempt for workers and a disregard for a fair process.”
Costco has informed the union that it will cut the contract talks between the two sides from five days a week to three, after telling the union that it refused to accept 98 percent of the Teamsters’ proposals.
This is going on as Costco CEO Ron Vachris was telling investors during the company’s quarterly earnings call that negotiations would be “fair” and “timely.”
“Costco is telling investors they want a deal, but their actions say otherwise,” said Tom Erickson, director of the Teamsters Warehouse Division. “Refusing to meet doesn’t signal commitment. It signals delay, disruption, and a potential labor dispute.”
“By refusing to show up for bargaining, the company acts like they’re above us,” said Tony Gonzales, a 42-year Costco employee and Local 166 shop steward. “We work hard, some of us six days a week. Why can’t corporate do the same? Their refusal is shameful.”
The Teamsters recently filed unfair labor practice charges against the company for anti-union activities.
Among the allegations there: Costco is alleged to have expelled union representatives, harassed workers for wearing union buttons, and removed literature and changed locks on union bulletin boards.
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Chris Graham
