Costco Fleet Drivers Overwhelmingly Ratify New Contract

Three-Year Agreement Secures Major Gains in Wages, Pension, and Job Protections

Press Contact: Colin McCullough Phone: (856) 625-6856 Email: cmccullough@teamster.org

(SUMNER, Wash.) – More than 150 Costco fleet drivers and MDO logistics workers represented by Teamsters Local 174 have overwhelmingly ratified a powerful new three-year agreement that locks in major economic and workplace gains. The deal builds on the recently ratified Costco Teamsters National Master Agreement while securing additional protections tailored to the unique needs of fleet and MDO workers.

“This group faced an uphill battle to get here,” said Rick Hicks, Teamsters Western Region International Vice President and Secretary-Treasurer of Local 174. “They powered through a tough organizing fight, a hard-won first contract, and now this strong follow-up agreement. Their determination never wavered, and now they have a contract that will truly improve their lives and shows the strength of organizing with the Teamsters.”

Costco’s Sumner fleet drivers made history as the first-ever Costco distribution center workers to unionize with the Teamsters. Their new agreement delivers substantial wage increases, replaces the uncertainty of a 401(k) with a defined benefit pension, strengthens seniority rights, and ends at-will employment through a just cause standard and grievance procedure.

“We’re raising the bar at Costco and across the warehouse industry,” said Tom Erickson, Director of the Teamsters Warehouse Division. “This contract delivers real, lasting improvements for these workers, and it sends a clear message to nonunion Costco distribution workers that the Teamsters can deliver the protections and respect they deserve.”

FULL story: https://teamster.org/2025/04/costco-fleet-drivers-overwhelmingly-ratify-new-contract/