Costco Faces Criticism for Rejecting Teamsters' Fair Wage Proposal

Costco Profits Skyrocket, Yet Employee Wages Stagnate

The discrepancy between soaring profits and stagnant employee wages is causing tension at Costco. The retail behemoth, which has recently reported record profits, has come under fire for offering what many believe to be inadequate compensation to the workers who help generate these unprecedented financial results.

In 2024, Costco announced an impressive net profit of $7.4 billion, a notable increase from $6.3 billion the previous year and a striking 135 percent rise since 2018's $3.1 billion. Despite these substantial gains, the Teamsters’ proposal for improved wages and retirement benefits has been dismissed by the company.

Sean M. O’Brien, General President of the Teamsters, criticized the company's approach, stating, “Costco executives are padding their pockets while trying to leave workers behind.” O’Brien emphasized the need for Costco to recognize its employees' critical contributions through appropriate contracts, warning of potential labor disputes if the situation remains unresolved.

Tom Erickson, Director of the Teamsters Warehouse Division, echoed these sentiments, indicating the apparent disparity between company wealth and employee compensation: “This isn’t complicated — a 135 percent increase in profits should translate to significant wage increases.”

Representing more than 18,000 workers nationwide, the Teamsters are poised for action as the Costco Teamsters National Master Agreement is set to expire on January 31. The workers are not only pushing for fairer wages but are also prepared to strike if necessary.

Ed Swank, a shop steward for Teamsters Local 542 and Costco employee in San Diego, expressed the workers' readiness to stand firm: “No one wants to strike, but if Costco continues to insult us with unrealistic and disrespectful wage proposals, we will have no choice.” Swank highlighted the potential risk to Costco's reputation, urging the company to reconsider its stance at the negotiation table.

The International Brotherhood of Teamsters, established in 1903, stands as a significant labor union representing 1.3 million members across the U.S., Canada, and Puerto Rico. For more details, visit Teamster.org. Follow their updates on Twitter @Teamsters and on Facebook at Facebook.com/teamsters.