Costco rejects union demands as contract deadline looms
CostcoCostco(US:COST) Fox Business·2024-12-12 19:14

Core Viewpoint - Costco has rejected a significant majority of the Teamsters' proposed contract provisions, indicating a potential escalation towards a labor dispute as the contract deadline approaches on January 31 [1][2][3]. Group 1: Contract Negotiations - The Teamsters reported that Costco rejected 98% of their proposed contract provisions, which included key issues such as seniority, paid family leave, and sick time [1]. - The union accused Costco of failing to engage in good-faith negotiations, claiming the company is adopting an aggressive anti-union stance [2][3]. - Negotiations were previously suspended in August due to Costco's refusal to allow nonunion workers to join the Teamsters without facing management threats [5]. Group 2: Union Actions and Allegations - The Teamsters have filed unfair labor charges against Costco for various alleged practices, including expelling union representatives and harassing workers [3]. - The union organized a rally in California to protest against what they describe as unfair labor practices and to demand a more favorable contract [2]. Group 3: Company Reputation and Financial Performance - Costco reported net sales of $78.2 billion in fiscal year 2024, but the union argues that the company has deviated from its pro-worker reputation, prioritizing corporate interests over employee welfare [9]. - The union is demanding that the new contract reflects Costco's substantial profits and holds the company accountable for its claims of being worker-friendly [9].