The coming days will see tension in bulk for warehouse retail chain Costco as its workers are set to take strike action if contract negotiations fail. The company is also embroiled in a DEI policy controversy parallel to this. The year started out with a bang as multiple new locations were announced across the country, but it seems the month will end on a rather sour note for the retailer if worker demands are not met.
Ready, set, strike action!
With the recent return of the Republican Party to office, companies across the country have been facing pressure from the conservative think tank to put an end to any diversity, equity, and inclusion policies. Costco, too, is facing these pressures. The company has, however, remained firm in the implementation of its DEI policies.
As this is happening, the warehouse retailer is also facing a potential strike by its workers that is fully backed by the worker union. If a new contract is not settled on by Friday, Jan 31, the company will next see 18,000 of its employees at the picket lines. The worker union backing Costco employees is Teamsters.
Regarding the situation, a Teamsters member shared, “If Costco actually respects its employees, it will give our 18,000 members the wages, benefits and work rules that they have been demanding for months.”
There is a certain irony in these looming strikes when you remember that Costco has the reputation for allegedly being more pro-worker than its competitors. Yet, despite recent successes and increased profits, the company does not appear to be willing to fairly compensate its workers.
Costco costing themselves
The Teamsters union which backs 18,000 of the 219,000 U.S. worker base, has accused the warehouse grocer of not sharing its record $7.4 billion profits with employees. Teamsters is also arguing that the company engages in “illegal and reckless behavior“, such as kicking union reps out of stores, preventing employees from wearing Teamster buttons and changing the locks on union bulletin boards.
In January, talks broke down after the company refused to reach a card check agreement. Card check is a process that would make it easier for workers to join unions by eliminating secret ballots. Eighty-five percent of Costco’s unionized employees voted to authorize a strike. 50 stores across the U.S. in New York, New Jersey, Virginia and Washington will be impacted by this strike.
Company stance on DEI
Last Friday, the Costco board made the practically unanimous decision to reject the anti-DEI measures brought forth by investors at the shareholder meeting. As this was happening, workers rallied outside the Washington offices to signal that the fight has only just begun.
Teamsters President, Sean O’Brien shared in a statement, “Costco has two choices: respect the workers who made them a success or face a national strike. Costco Teamsters deserve an industry-leading contract that reflects the company’s massive profits. If Costco thinks they can exploit our members while raking in billions, we’ll shut them down.”
A Teamsters spoke person also reiterated that “the reason Costco has made so much money over the past few years is its workers.”
This strike action appears to be coming at the same time as a letter was sent to CEO Ron Vachris by 19 states’ attorneys general who called on Costco to end their DEI policies, demanding that the grocery chain must “end all unlawful discrimination imposed by the company through diversity, equity, and inclusion.”
One has to wonder if the timing of these two events is truly coincidental, or is it perhaps possible that the company is taking such a firm stance against the DEI matter in order to deflect attention from their labor disputes by making it seem like the company does indeed put its workers first — rather than give in to peer pressure.