A Teamsters union representing 18,000 workers at Costco (COST) in the U.S. is preparing for a nationwide strike.
The unionized workers voted in favour of a strike beginning on Jan.31 if the Teamsters and Costco’s management team fail to reach a new labour agreement by that date.
Costco Teamsters, the union representing the workers, said 85% of its members voted to approve the strike action when their current contract expires at the end of January.
A strike would hamper operations at the popular retailer and warehouse club, both in the U.S. and neighboring Canada.
The union said in a news release that Costco’s management had rejected a proposal and called the company’s counterproposal “insulting.”
The Teamsters have said that employees of Costco want to share in the company’s “historic financial success” and receive enhanced retirement benefits.
Costco’s management has said little publicly about the current contract negotiations. However, the company does have a reputation for treating workers well.
The retailer has also defended diversity, equity and inclusion initiatives at a time when many other companies have abandoned the policies.
Costco’s stock has risen 36% in the last 12 months to trade at $943.19 U.S. per share.
