Costco’s $254B Empire Is on the Line as 18,000 Workers Threaten Every CEO’s Worst Nightmare

You might want to hold onto your $1.50 hot dog… because Costco’s beloved “good guy” reputation might be skating on thin, Kirkland Signature-brand ice.

On February 1st, 18,000 Teamsters union members are ready to drop their price check scanners and hit the picket lines if Costco doesn’t cough up a better deal before their current contract expires January 31.

That’s not a typo, 85% of union members voted to authorize a strike. "But Costco's one of the good ones!" you might say, clutching your Kirkland-branded everything. And yeah, traditionally they've been the Aaron Rodgers of retail… reliable, well-liked, until suddenly they're not.

See, despite sucking in $254 billion in annual revenue and $7.4 billion in net profits last year (a 135% increase since 2018, no big deal), Costco executives have apparently been saying “no” like a two year old child. Disagreements over wages, benefits, seniority pay, paid family leave, and even safeguards against surveillance have left union reps feeling like they’re getting screwed. “This strike vote is a direct response to Costco’s greed and blatant disregard for the bargaining process,” said Tom Erickson, director of the Teamsters Warehouse Division. In other words: The union isn’t buying Costco’s image as the retail world’s white knight.

Now while that number sounds huge… those 18,000 Teamsters represent just 8% of Costco’s 219,000 U.S. employees, but if they walk, it’ll be the biggest retail strike in a hot minute. Most U.S. retailers are overwhelmingly non-unionized (less than 5% of retail workers are in unions, according to the Labor Department). And Costco’s workers are spread across 56 warehouses in five states, meaning this could turn into a potential Costco-sized migraine.

Not to mention, Costco has long been the best of retail, known for treating its employees better than competitors. Remember, this is the same CEO who only makes a base salary of $1 million (as opposed to other CEO’s who make xyz)  who But the union says those good vibes have hit the clearance rack. “Costco claims to treat workers better than the competition, but right now, it’s failing to live up to that reputation,” Erickson added.

If this strike happens, it won’t just impact your ability to score a 36-pack of toilet paper at midnight. The public perception of Costco’s worker-first philosophy could take a hit. And it’s not like this would be an isolated incident… remember the Teamsters’ high-stakes standoff with UPS last year? While that strike was ultimately avoided, the message was clear: unions aren’t afraid to stir the pot.

Practice pickets have already popped up in San Diego, Long Island, and other locations. Costco’s response to this mess has been… crickets. The company hasn’t commented on the vote, which feels less like a power move and more like waiting out the storm. But with just days left to strike a deal, time is running out for Costco to prove it’s not just another retail giant protecting profits over people. As Bryan Fields, a Costco worker in Baltimore, put it: “We are the backbone of Costco. We drive its success and generate its profits. If they don’t step up, that’s on them. The company will be striking itself.”

Costco shares are over 36% the last 12 months, but a prolonged strike could erase those gains quick. Let’s just hope we get some good memes from this if nothing else.

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Stocks.News has positions in UPS and Costco mentioned in article.