Costco bosses basked in praise for making union-friendly statements but have yet to commit to bargain in good faith.
Last December, a group of 238 Costco workers in Norfolk, Virginia, voted to unionize and join Teamsters Local 822. The local declared the vote “the union’s first organizing victory at the wholesale retailer in two decades.” The voices of the pro-union workers who won this contested election — the vote was 111-92 — were quickly overshadowed, however, by a letter from Costco’s leadership that garnered much attention beyond the shop floor.
Outgoing Chief Executive Officer Craig Jelinek and incoming CEO President Ron Vachris stated in a letter addressed to all Costco employees, that “we’re disappointed by the result” of the union election. But, they added, “We’re not disappointed in our employees; we’re disappointed in ourselves as managers and leaders.” In their view, the employees voted for a union because management failed to satisfy its “core value of ‘taking care of our employees.’”
For an HR letter, it went viral. Much praise was lavished onto Jelinek and Vachris for their “graceful” and “classy” response. CNN described the letter as “surprising” and in “stark contrast” to “other companies, such as Starbucks, [which] have pushed back hard against union organizing.” Others praised Costco’s “emotional intelligence” and ability to look “inward.”
During the early 1990s, Costco competed with Price Club, another retailer that already had unionized workers. When Costco merged with Price Club in 1993, many of the union warehouses (mostly located in California) remained union. In the early to mid-2000s, the Teamsters expanded the number of union warehouses with some successful campaigns in New Jersey, New York, Maryland and Virginia. But it was always a challenge.