Teamsters accuse Costco of wage theft over unpaid driver wages

Tom Erickson Director Warehouse Division Archives - International Brotherhood of Teamsters
Tom Erickson Director Warehouse Division Archives - International Brotherhood of Teamsters

Teamsters Local 174 has lodged several complaints with the Washington State Department of Labor and Industries against Costco Wholesale. The union accuses the company of not paying fleet drivers their agreed wages under a collective bargaining agreement.

The group of 150 drivers, stationed in Sumner, Washington, became the first Costco distribution drivers to join the Teamsters. They ratified their initial contract in April 2025, which included wage increases retroactive to September 1, 2024. However, according to the union, Costco has not fulfilled this payment obligation.

Rick Hicks, Secretary-Treasurer of Local 174, stated: “Costco likes to pretend it’s a good employer. That’s a lie.” He further added that withholding wages is “wage theft” and demanded immediate resolution from Costco before escalating the complaint with state authorities.

Despite reporting over $254 billion in revenue and $7.4 billion in profits last year, Costco allegedly continues to neglect its contractual duties towards these workers.

Tom Erickson, Director of the Teamsters Warehouse Division, commented: “This is corporate thievery, plain and simple — and Costco’s executives are the crooks.” He emphasized that they will persist until all owed wages are paid.

The Teamsters insist on immediate compliance from Costco regarding contract terms and retroactive payments. They have expressed readiness for further action if necessary.

Founded in 1903, the International Brotherhood of Teamsters represents 1.3 million workers across North America. More information can be found at Teamster.org or through their social media channels.

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