The Teamsters union announced early Saturday that it reached a tentative agreement with Costco as thousands of workers were preparing to walk off the job after a collective bargaining agreement reached in 2022 expired.
Terms of the deal have not been released and a final deal still needs to be approved by unionized Costco workers. The Teamsters union said additional details would be released soon.
Nearly 18,000 out of Costco's 208,000 employees are members of the Teamsters.
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In January, 85% of unionized Costco workers voted to go on strike if the union could not reach an agreement with the company.
“Our members have spoken loud and clear — Costco must deliver a fair contract, or they’ll be held accountable,” Teamsters General President Sean M. O’Brien said after the vote. “From day one, we’ve told Costco that our members won’t work a day past January 31 without a historic, industry-leading agreement."
On its website, Costco claims it is "much more employee-focused than other Fortune 500 companies."
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"By offering fair wages and top-notch benefits, the company has created a workplace culture that attracts positive, high-energy, talented employees," the company added.
But the Teamsters union said it would challenge Costco to prove it’s a "pro-worker" company.
