With 18,000 Costco workers set to potentially strike when their contract expires, the company announced pay raises for non-union employees, a move that could be seen as an attempt to undermine union negotiations. Legal experts suggest that this strategy may reduce strike incentives but may inadvertently pressure the union to secure even better terms than those offered to non-union workers. Key issues such as wages and union rights remain unresolved, putting pressure on both sides in the negotiations.
I think Costco's response to immediately grant the salary increases to everybody is in some way to lessen that chatter and to say, 'Well, you don't need the Teamsters. We'll take good care of you. Trust us to do the right thing.' Now, the Teamsters are in a position where they have to get more than what the non-unionized would get.
Wages, pensions, and increased protections of union rights are the outstanding issues at the bargaining table on which the parties have yet to agree.
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