Costco strike looms: What it means for shoppers

Here's how Costco, the world's largest warehouse membership club, came to be. 18,000 unionized Costco workers could go on strike as soon as Friday if a contract agreement isn’t reached. The Teamsters union is demanding higher wages, better benefits, and improved workplace policies.

A strike could disrupt supply chains and impact product availability at Costco stores across multiple states. LOS ANGELES - The Costco Teamsters National Master Agreement is set to expire on Friday, and negotiations between the Teamsters union and Costco have stalled. The union, which represents 18,000 of Costco’s 219,000 U.



S. employees, has accused the retailer of refusing to share its record $7.4 billion in annual profits with workers.

Union leaders claim Costco has engaged in "illegal and reckless behavior" by preventing employees from wearing union buttons, locking union reps out of stores, and rejecting demands for a card check agreement, which would make it easier for workers to unionize. Costco workers have also raised concerns over pay, benefits, seniority rights, and paid leave policies, saying the company’s success should be reflected in worker compensation. Big picture view: While Costco has stated that the strike would affect less than 10% of its U.

S. locations, the Teamsters union argues that it could have widespread consequences for consumers. FILE - In an aerial view, the Costco logo is displayed on the exterior of a Costco store on July 11, 2024 in Richmond, California.

(Photo by Justin Sullivan/Getty Images) A strike could potentially lead to: Product shortages : Costco’s supply chain could face disruptions, particularly in states where Teamsters handle warehouse deliveries. Longer wait times : Delays in restocking could result in empty shelves at some locations. Potential price increases : If supply chain disruptions persist, Costco could adjust pricing on certain items.

Affected locations include stores in Washington, New York, New Jersey, and Virginia, among others. The Teamsters and Costco are resuming negotiations on Thursday and Friday, just ahead of the contract deadline. The union has made it clear that if Costco fails to meet its demands, a strike will happen.

Teamsters President Sean O’Brien warned that workers are prepared to "shut them down" if Costco does not agree to a fair contract. However, Costco has maintained that it is negotiating in good faith and that the dispute is not expected to have a material impact on business. With just hours left before the deadline, customers should be prepared for possible disruptions and monitor updates on store operations.

The Source: This story is based on reporting from Fox Business and statements from the Teamsters union..