Teamsters 174 files wage theft complaint against Costco

Costco is refusing to pay out retroactive pay increases secured through collective bargaining, per union

TUKWILA, WA (July 1, 2025) — A group of Costco fleet drivers represented by Teamsters Local 174 ratified a contract in April securing significant wage gains, with raises retroactive to September of 2024. Now, Local 174 reports that months later, the company is refusing to pay workers what it owes. In response, the union last week filed multiple complaints with the Washington Department of Labor & Industries against the company for violating terms of the collectively bargained agreement.

“Costco has a reputation for being a fair and decent employer, but our members’ experience has unfortunately been very different,” said Teamsters Local 174 Secretary-Treasurer Rick Hicks. “This company has thus far given zero reasonable explanation for their refusal to pay workers what they are owed, and unsurprisingly that will not work for us and it will not work for our members.”

These 150 workers out of the distribution center in Sumner, WA are the first Costco drivers in the nation to join the Teamsters, ratifying their first Teamster contract in September of 2024. There is a National Costco Master Agreement covering Teamster-represented Costco workers in multiple states. Once the drivers secured their first contract, negotiations than began on a second contract, with the Sumner group having the choice to become part of that national agreement. Workers chose that option, with management agreeing that any wage increases negotiated nationally would then be retroactive back to September.

Costco Teamsters rally in Sumner during their contract fight earlier this year. Photo: IBT

Costco Teamsters fought hard to secure raises and other improvements in their national agreement. Across the country, the workers voted to authorize a strike and local Costco drivers rallied in front of corporate headquarters in the lead up to contract expiration, bringing their contract fight directly to the annual shareholders meeting. Workers were successful, winning a contract with substantial wage increases and improvements to healthcare, pension, and working conditions.

At the time, Hicks praised the workers for their tenacity: “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.”

But now, with Costco refusing to pay out the retroactive pay agreed to in that contract, workers are once again standing together to demand they are paid what they are owed.

“We expect this situation to be resolved immediately before we need to escalate this complaint with the State of Washington any further,” Hicks said in a statement announcing the complaints. “Our motto is ‘a fair day’s work for a fair day’s pay,’ and until that happens, Costco will be hearing a lot from the Teamsters Union.”