“This group has faced considerable challenges to reach this point,” said Rick Hicks, Teamsters Western Region International Vice President and Local 174 Secretary-Treasurer. “They navigated a difficult organizing process, achieved their first contract, and now have secured this robust follow-up agreement. Their unwavering determination has resulted in a contract that will significantly enhance their lives and underscores the power of Teamster organization.”

Costco’s Sumner fleet drivers made history as the first distribution center staff at the company to unionize with the Teamsters. The newly ratified contract includes substantial wage increases, a transition from a 401(k) to a defined benefit pension plan, enhanced seniority rights, and the establishment of a just cause standard to replace at-will employment, along with a grievance procedure.

“We’re setting a higher standard at Costco and within the warehouse sector,” remarked Tom Erickson, Director of the Teamsters Warehouse Division. “This contract brings real, lasting improvements for these workers and sends a strong message to nonunion Costco distribution employees that the Teamsters can provide the protections and respect they deserve.”

As one of the largest corporations in the U.S., Costco ranks 11th on the Fortune 500, with annual revenues of $249.6 billion and profits exceeding $7.3 billion. While the company continues to thrive, Costco employees nationwide are uniting with the Teamsters to secure their fair share. Recently, more than 18,000 Costco Teamsters ratified a national master agreement that included significant wage increases, a 22% rise in pension contributions, and over 40 key improvements, including enhanced seniority rights, better vacation benefits, stronger shop steward protections, and new measures against surveillance.