Costco, Teamsters, reach 'tentative agreement' likely averting strike as company's DEI controversy rages on
Published On Feb 1, 2025, 1:14 PM
Costco has tentatively agreed on a new contract with the Teamsters union, potentially averting a strike by 18,000 workers. The agreement is aimed at increasing hourly wages, with pay for most workers exceeding $30 an hour. This decision comes as Costco faces pressure from its employees to share its substantial profits, reported at $7.4 billion last year. Workers are demanding better wages and benefits amidst ongoing controversies related to Costco's Diversity, Equity, and Inclusion (DEI) policies, which the company has strongly defended despite opposition from other major corporations.
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The successful negotiation of a contract with the Teamsters is likely to stabilize labor relations at Costco in the short term, reducing the risk of disruptions that could negatively affect operations and sales. Costco's decision to raise pay amidst record profits may enhance employee satisfaction and improve its public image as a pro-worker company, which could attract more customers. However, the ongoing DEI controversies could pose reputational risks in the longer term.
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