Costco & Teamsters Strike a Deal

How 18,000 Workers Won Higher Wages and Avoided a Walkout

Just before the clock struck midnight on January 31, 2025, Costco and the Teamsters union reached a tentative agreement, narrowly avoiding a strike that could have seen 18,000 workers across the U.S. walking off the job.

The union had previously voted overwhelmingly—85% in favor—to authorize a strike due to stalled contract negotiations. Their demands centered on significant wage increases and improved benefits, especially in light of Costco's impressive $7.4 billion profit last year.

In response, Costco announced plans to raise hourly wages for most of its store employees. Top-scale employees are set to see their pay increase to $30.20 an hour, with additional $1-an-hour raises over the next two years, bringing many workers' pay to over $30 an hour. Entry-level workers will receive a $0.50 increase, bringing their starting wage to $20 an hour.

While the specifics of the tentative agreement haven't been publicly disclosed yet, it's clear that the union's push for a contract reflecting the company's financial success played a pivotal role in these developments.

For more details, you can check out this news coverage: