Costco and Teamsters Reach Agreement

Feb 25, 2004

By George Anderson

The president of the International Brotherhood of Teamsters, Jim Hoffa, is hailing a new contract agreement with Costco for its members in California as “an example of what can
happen when the union and the company cooperate at the negotiating table.”

The union and Costco faced the same issues concerning medical care that have dominated other grocery industry negotiations.

Rome Aloise, a Teamsters representative said, “During negotiations, the union and management recognized the mutual challenges. In this contract, the workers agreed to pay a portion
of their health-care costs, but that was offset by the increased wages, bonuses and pensions.”

Moderator’s Comment: Was the approach of management and labor different in the Costco
negotiations than that taking place between Albertsons, Kroger, Safeway and the United Food and Commercial Workers Union (UFCW)?

The agreement covers 12,000 workers at 39 warehouses in California. It was approved by 94 percent of the union members who voted.
Anderson – Moderator

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