Costco Faces Potential Nationwide Strike as Union of 18,000 Workers Votes to Authorize Action

A union representing thousands of Costco employees has voted to authorize a strike, setting the stage for a potential work stoppage if an agreement is not reached between the labor group and the retailer.

The Costco Teamsters union, representing 18,000 employees nationwide, announced that 85% of its members voted in favor of the strike authorization. The current contract between the Teamsters and Costco is set to expire on January 31.

Costco's greedy executives have less than two weeks to do the right thing, said Sean O'Brien, general president of Teamsters, in a statement. If they refuse, they'll have no one to blame but themselves when our members go on strike.

A strike could disrupt Costco's daily operations and potentially impact its public image as a company known for positive worker relations and support for diversity and inclusion.

The union stated on Sunday via an X post that final negotiations with Costco would continue this week. In preparation for a potential strike, the Teamsters organized practice pickets last week in cities including San Diego and Long Island, New York.

Earlier this year, the union criticized Costco for rejecting its proposal and described the company's counterproposal as insulting, claiming it failed to reflect Costco's historic financial success and offered no improvements to retirement benefits.

This strike vote is a direct response to Costco's greed and blatant disregard for the bargaining process, said Tom Erickson, director of the Teamsters Warehouse Division, in a press release. Costco claims to treat workers better than the competition, but right now, it's failing to live up to that reputation. Management has less than two weeks to fix this — if they don't, they'll face the consequences.

Costco has not yet responded to CNBC's request for comment.