Costco Wholesale Faces Union Labor Complaints Over Unpaid Wages to Drivers
- Teamsters Local 174 has filed complaints against Costco for unpaid wages to union drivers in Washington State.
- Drivers allege Costco has not paid retroactive wage increases mandated by their collective bargaining agreement.
- Union leaders criticize Costco's actions as "wage theft" and threaten escalation if wage issues remain unresolved.
Costco Faces Labor Complaints Over Unpaid Wages to Union Drivers
In a significant labor dispute, Teamsters Local 174 has lodged multiple complaints with the Washington State Department of Labor and Industries against Costco Wholesale. The complaints center on allegations that Costco has failed to pay its fleet drivers the wages mandated by their collective bargaining agreement. This group of approximately 150 drivers, who are based in Sumner, Washington, recently made history as the first Costco distribution drivers to unionize, ratifying their inaugural contract in April 2025. The contract includes retroactive wage increases that were supposed to take effect from September 1, 2024. However, the drivers claim that they have yet to receive any of the owed wages, prompting the union to take action.
Despite Costco's impressive financial performance, with revenues exceeding $254 billion and a record profit of $7.4 billion last year, the company’s failure to fulfill its wage obligations has raised eyebrows. Rick Hicks, the Secretary-Treasurer of Local 174, has publicly condemned Costco's inaction, labeling it as "wage theft." He asserts that the company’s disregard for the contract is unacceptable and has warned of potential escalation if the issue is not promptly resolved. Tom Erickson, Director of the Teamsters Warehouse Division, similarly characterizes Costco's failure to pay as "corporate thievery," highlighting the apparent conflict between the company's substantial profits and its treatment of workers.
The Teamsters are demanding that Costco adhere to the terms of the contract by paying all retroactive wages owed to the drivers and ceasing any further delays. Founded in 1903, the International Brotherhood of Teamsters represents around 1.3 million workers across the U.S., Canada, and Puerto Rico, advocating for fair labor practices. The union's commitment to its members is evident, and if Costco continues to ignore its legal obligations, the Teamsters are prepared to escalate their actions to ensure that every last dollar owed to their members is recovered.
In light of this situation, the attention turns to how Costco, a major player in the retail industry, will navigate this labor dispute while maintaining its reputation and customer relationships. As the union's demands gain traction, it may prompt broader discussions about labor practices within the retail sector, especially among companies that prioritize growth and profitability. The outcome of this conflict could serve as a significant case study for labor relations in the industry and may influence how large corporations handle union negotiations moving forward.
