$420 Billion Wholesale Giant Rejects Fair Wages, Prioritizes Profits Over Workers
AInvestTuesday, Jan 7, 2025 3:56 pm ET
4min read

In an era where corporate social responsibility is increasingly scrutinized, Costco, the $420 billion wholesale giant, finds itself under fire for its treatment of workers. Despite reporting record-breaking profits in 2024, Costco has rejected a comprehensive economic proposal from the Teamsters union, instead offering an insulting counterproposal that fails to reflect its historic financial success or provide increased retirement benefits for its employees.



Costco's recent annual net profits of $7.4 billion, up from $6.3 billion last year and a staggering 135 percent increase from $3.1 billion in 2018, are a testament to the tireless work of its employees. However, the company's refusal to share its success with those who made it possible has led to growing discontent among its workforce.



The Teamsters union, which represents over 18,000 Costco workers nationwide, has demanded a strong contract that reflects the company's record profits. Costco Teamsters are prepared to strike if the company fails to deliver a fair agreement. Ed Swank, a Costco worker in San Diego and Teamsters Local 542 shop steward, warns that if the company continues to insult workers with unrealistic and disrespectful wage proposals, it will only be striking itself and damaging its once-proud, 'pro-worker' reputation.



Founded in 1903, the International Brotherhood of Teamsters represents 1.3 million hardworking people in the U.S., Canada, and Puerto Rico. Visit Teamster.org for more information. Follow us on Twitter @Teamsters and “like” us on Facebook at Facebook.com/teamsters.





Costco's refusal to share its success with its employees is a stark reminder that, despite the company's public image as a 'pro-worker' organization, its priorities remain firmly rooted in maximizing profits at the expense of its workforce. As the company continues to reap the benefits of its employees' hard work, it is crucial that it addresses the concerns of its workers and ensures that they are fairly compensated for their contributions to Costco's success.

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