Costco union representing 18,000 workers authorizes nationwide strike

A union representing thousands of Costco employees voted to authorize a strike, paving the way for a work stoppage if the labor group and the negotiator do not reach an agreement.

The Costco Teamsters, the 18,000-employee union for the nationwide retailer, said 85% of members voted to approve the action. The current contract between the Teamsters and the wholesaler expires on January 31st.

“Costco’s greedy executives have less than two weeks to do the right thing,” Sean O’Brien, general manager of the Teamsters, said in a declaration. “If they refuse, they have no one to blame but themselves when our members strike.”

A strike can hamper the day-to-day operations of the well-known retailer. It could also affect public sentiment around Costco, which has become known for its positive treatment of workers and, more recently, as a defender of diversity and inclusion measures.

The Teamsters will negotiate a final week with Costco, the union wrote in a X posts on Sunday. The union ran walkouts in preparation for a potential strike last week at locations including San Diego and Long Island, New York.

The union said in a statement earlier this year that Costco rejected a proposal and called Costco’s counterproposal “insulting,” noting that it did not reflect the company’s “historical financial success” and offered no improvement in pension benefits.

“This strike vote is a direct response to Costco’s greed and blatant disregard for the bargaining process,” Tom Erickson, director of the Teamsters Warehouse Division, said in a news release. “Costco claims to treat workers better than the competition, but right now they’re not living up to that reputation. Management has less than two weeks to fix this – if they don’t, they’ll face the consequences.”

Costco did not immediately respond to CNBC’s request for comment.