Costco Wholesale is facing formal complaints with Washington state labour authorities after allegedly failing to pay retroactive wages to a group of unionized fleet drivers, said Teamsters Local 174.
The complaints, filed with the Washington State Department of Labor and Industries, accuse the retail giant of not honouring the terms of a collective agreement ratified in April. That deal granted wage increases for 150 drivers based in Sumner, Wash., retroactive to Sept. 1, 2024.
According to the union, Costco has not made any payments to date and has not indicated when or if it will do so.
Union says Costco ‘withholding wages’
“Costco likes to pretend it’s a good employer. That’s a lie,” said Rick Hicks, secretary-treasurer of Local 174. “The company has no excuse for withholding wages. It’s wage theft, plain and simple, and we’re not backing down until every worker is paid in full. We demand that this situation be resolved immediately before we need to escalate our complaint with the state of Washington.”
The Sumner-based drivers were the first Costco distribution fleet to unionize, making their agreement a high-profile development in the company’s labour relations. Despite reporting more than $254 billion in revenue and $7.4 billion in profits last year, the union says Costco is “refusing to meet its most basic obligations” to its workers.
National Teamsters division backs Local 174
Tom Erickson, director of the Teamsters Warehouse Division, added the union is prepared for a prolonged fight.
“This is corporate thievery, plain and simple — and Costco’s executives are the crooks,” said Erickson. “They’ve made a calculated decision to steal from our members while padding their own profits. If Costco wants a fight, they’ve got one. We’re not going away, and we’re not letting up until every last dollar is in our members’ hands.”
The Teamsters are calling for immediate payment of all outstanding wages as per the ratified contract and have warned of further action if the company does not comply.
