Teamsters Accuse Costco of Wage Theft Amidst Contract Breach Allegations

Teamsters Take Action Against Costco for Wage Violations

In a significant development emerging from Sumner, Washington, Teamsters Local 174 has taken a bold stand against Costco Wholesale by filing multiple formal complaints with the Washington State Department of Labor and Industries. The grievances arise from Costco's refusal to honor its obligations to pay fleet drivers the wages they are entitled to under their collective bargaining agreement.

This group of 150 Costco drivers made their mark earlier this year by becoming the first batch of distribution drivers at the retailer to unite under the Teamsters banner. They successfully ratified their first contract in April 2025, which included retroactive wage increases effective from September 1, 2024. However, as months have passed, these drivers have yet to see any compensation from their employer, sparking frustration and indignation within the ranks.

Rick Hicks, Secretary-Treasurer of Local 174, expressed the sentiment shared by many within the union, stating, "Costco likes to pretend it's a good employer. That's a lie. 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 financial backdrop against this issue is striking. Despite reporting towering revenue figures exceeding $254 billion last year, alongside a remarkable profit of $7.4 billion, Costco is accused of opting against fulfilling basic obligations to the very workers responsible for sustaining its supply chain.

Tom Erickson, the Teamsters Warehouse Division Director, has not held back in his criticism of Costco's actions. He remarked, "This is corporate thievery, plain and simple — and Costco's executives are the crooks. 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 urging Costco to comply immediately with the contract terms, pay all owed retroactive wages, and cease any further delays. If the retail giant continues to disregard its legal responsibilities, the Teamsters have indicated readiness to escalate their approach.

Founded in 1903, the International Brotherhood of Teamsters represents over 1.3 million workers across the United States, Canada, and Puerto Rico, making it one of North America's most influential labor unions. This situation at Costco serves as another reminder of the ongoing struggles faced by workers in their fight for fair wages and treatment.

For more details, visit Teamster.org for insights into their work and advocacy. Follow the Teamsters on X @Teamsters and on Facebook at Facebook.com/teamsters for the latest updates on this developing story.