Costco Teamsters ratify contract

Deal locks in wage increases, healthcare, pension and secures a just cause standard

TUKWILA, WA (April 21, 2025) — Teamsters Local 174 Costco Depot drivers and MDO workers overwhelmingly ratified a contract earlier this month, hailed by the union as a historic agreement. While the Local 174 Costco Agreement mirrors the Teamsters National Costco Master Agreement in many ways, it contains additional protections unique to the needs of local members, which the union believes will significantly improve daily working conditions on the job.

“This group has faced an uphill battle to reach this milestone. Between a contentious organizing drive, a challenging first contract campaign, and finally this successor Agreement, these members never wavered from what they wanted,” said Teamsters Local 174 Secretary-Treasurer Rick Hicks in a statement lauding the agreement.

Photo: Teamsters Local 174

In addition to significant wage increases over a three-year period that are greater than any other three-year timeframe in the Company’s history, with retro pay back to September of 2024, the new contract also protects members’ healthcare plans and investments into Teamster retirement plans. Per the union, most non-represented Costco workers have watched their 401(k) retirement plans lose upwards of 22% over the past couple of weeks. Meanwhile, Local 174 members and other union workers covered by the Teamsters National Costco Contract have seen their pensions continue to grow over that period. Those pensions are once again enshrined in the new contract.

New work rules are also contained within this contract. Drivers have the right, by seniority, to choose their workweek, start time and workload on a daily basis. Per Local 174, this cuts out favoritism and retaliation for those who stand up for their rights, and it also removes Costco’s “guilty until proven innocent” approach to discipline, in which workers accused of any malfeasance are put on an unpaid three-day suspension before any investigation can occur. Workers are now protected by a “Just Cause” standard and have access to a formal grievance procedure that is standard in most Union contracts. These are transformative changes, unheard of in the years prior to organizing with Local 174.

In a statement, Secretary-Treasurer Hicks applauded bargaining unit members’ tenacity and grit.

“They stayed the course, remained united, and fought to achieve a contract that recognizes the value they provide to this 420 billion dollar Fortune 500 corporation,” said Hicks. “Now they will be able to work under a contract that fundamentally improves their lives and demonstrates the value of organizing with a strong Union like Teamsters Local 174. They earned every bit of what they now have, and we are proud to have them as members of our great Union.”