Economics

Summary

Costco and the Teamsters union reached a tentative agreement on a new contract, preventing a potential strike by 18,000 workers in six states.

The deal, which still requires member approval, comes after Teamsters voted to strike if no agreement was reached by Friday’s deadline.

The union sought a contract reflecting Costco’s strong financial growth, with revenue reaching $254 billion last year.

While details remain undisclosed, Teamsters President Sean O’Brien stated that workers deserve compensation in line with the company’s massive profits.