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Major Wins for Costco Fleet Drivers

On April 10, 2025, over 150 fleet drivers and logistics workers for Costco, represented by Teamsters Local 174, celebrated a notable achievement by overwhelmingly ratifying a new three-year contract. This agreement promises substantial economic and workplace enhancements that build upon the recently ratified National Master Agreement for Costco Teamsters.

Achievements of the New Agreement

This groundbreaking contract is a testament to the rigorous efforts and commitment of the workers and their union leadership. Key components include:

• - Significant Wage Increases: Drivers will benefit from new wage structures that ensure competitive earnings in line with industry standards.
• - Defined Benefit Pension: The contract replaces the uncertainty of a 401(k) with a more secure defined benefit pension plan, ensuring a reliable income upon retirement.
• - Strengthened Seniority Rights: Enhanced seniority protections enable workers to secure their positions and advance fairly within the company.
• - Job Security Measures: Ending the transitional at-will employment by implementing a just cause standard for employment terminations, thereby adding job security for every worker.

Rick Hicks, the International Vice President and Secretary-Treasurer of Teamsters Local 174, highlighted the significance of this agreement, stating, “This group faced an uphill battle to get here... Their determination never wavered, and now they have a contract that will truly improve their lives.” This sentiment reflects the pivotal role that collective bargaining plays in securing the rights of workers in an evolving labor environment.

Impact on the Labor Movement

This ratification marks a critical chapter not just for Costco but for the broader warehouse industry as well. Tom Erickson, Director of the Teamsters Warehouse Division, noted, “We’re raising the bar at Costco and across the warehouse industry.” The contract is not only a victory for the current employees but also sets a benchmark for non-unionized workers within Costco who are looking to improve their working conditions through unionization.

Costco, the 11th largest corporation in the U.S. according to the Fortune 500, reported revenues of $249.6 billion and profits exceeding $7.3 billion. Despite the company’s wealth, many workers across the country are rallying together to claim their rightful share of the profits generated by their labor. Recent efforts have seen over 18,000 Costco Teamsters ratifying a national master agreement that ensured significant wage increases and additional protections.

Looking Ahead

As the labor movement continues to gain momentum, the Teamsters anticipate further progress in securing fair employment conditions for workers in various sectors. With the success of Costco fleet drivers as a shining example, union efforts will likely inspire similar movements across industries, pushing for respect, dignity, and fair compensation.

Founded in 1903, the International Brotherhood of Teamsters represents 1.3 million hardworking individuals across the U.S., Canada, and Puerto Rico. For more information about their initiatives and details on union activities, visit Teamster.org or follow their updates on social media platforms like X and Facebook.

This contract serves as a powerful illustration of what can be achieved when workers unite to advocate for their rights. The ongoing efforts of the Teamsters not only improve the lives of their members but also contribute to a strengthening labor movement across the nation.