Teamsters Demand Costco Pay Drivers' Owed Wages Amid Wage Theft Claims

The Fight for Fair Pay: Teamsters vs. Costco

Contact Details: Lena Melentijevic, Phone: (347) 208-2279, Email: LMelentijevic@teamster.org

In Sumner, Washington, Teamsters Local 174 is embroiled in a contentious dispute with Costco Wholesale over unpaid wages. The complaint, lodged with the Washington State Department of Labor and Industries, alleges that Costco has not adhered to the wage terms specified in its collective bargaining agreement with local fleet drivers.

This group, comprising 150 drivers, made headlines as the inaugural Costco distribution drivers to affiliate with the Teamsters. Following their groundbreaking move, they ratified a new contract in April 2025, which promised wage increases backdated to September 1, 2024. Despite these contractual obligations, Costco has not disbursed these wages, prompting further actions by the Teamsters.

Rick Hicks, Secretary-Treasurer of Local 174, expressed his frustration, stating, “Costco likes to pretend it’s a good employer. That’s a lie. The company has no excuse for withholding wages. It’s wage theft, plain and simple, and we’re not backing down until every worker is paid in full.” Hicks emphasized the urgency of resolving the issue before escalating it with state authorities.

Astonishingly, Costco's resistance to fulfill these obligations comes after a fiscal year where the company achieved over $254 billion in revenue, with profits soaring to a record $7.4 billion. Such financial success contrasts sharply with their reluctance to compensate the employees who are instrumental to their operations.

Tom Erickson, Director of the Teamsters Warehouse Division, criticized the corporation's actions, stating, “This is corporate thievery, plain and simple — and Costco’s executives are the crooks. They’ve made a calculated decision to steal from our members while padding their own profits. If Costco wants a fight, they’ve got one.”

The Teamsters have made it clear that compliance with the contract and the payment of retroactive wages are non-negotiable demands. As the situation unfolds, the Teamsters are prepared to intensify their efforts if necessary.

Established in 1903, the International Brotherhood of Teamsters advocates for 1.3 million members across the U.S., Canada, and Puerto Rico. For additional details, visit Teamster.org. Follow their updates on X @Teamsters and Facebook at Facebook.com/teamsters.