Workers at Costco’s Coralville location have announced they will organize a union with Teamsters Local 238, in addition to forming a community coalition “to hold management accountable,” a release stated.
The announcement comes on the heels of an unfair labor practice charge filed against the company by the union, citing a violation of employees’ federal rights to distribute union literature in non-work areas.
“Costco should respect their employees’ rights under federal law to organize with their coworkers. When good companies like Costco violate workers’ rights, it comes across as petty and unnecessary,” said Jesse Case, secretary-treasurer of Teamsters Local 238.
“Johnson County residents won’t stand for union-busting in our community,” he continued. “With 18,000 Costco workers already unionized with the Teamsters nationwide, it’s time for Coralville workers to have a voice and a seat at the table.”
On Jan. 20, Costco Teamsters declared their intent to go on strike when the current contract expired at 11:59 p.m. on January 31, Forbes reported. Costco and Teamster representatives were able to negotiate a tentative three-year contract at the last minute.
Teamsters had filed multiple unfair labor practice charges against the company in December, alleging it disrupted the bargaining process and expelled union representatives from stores, harassed and intimidated workers for wearing Teamsters buttons and attire, sent employees home and blocked the Teamsters from providing updates on in-store union bulletin boards during negotiations.
A day before the intended strike, Costco announced a pay raise for all hourly, non-union employees. Those at the top of the pay scale would see a $1 hourly wage increase to $30.20 per hour and a $1 per hour raise each of the following two years, Reuters reported, while those at the bottom of the pay scale would see a $0.50 pay raise, taking starting pay to $20 an hour.
“Workers in Coralville and across Iowa deserve the freedom to organize without interference from management. Costco’s actions undermine the fundamental rights of its employees,” State Senator Zach Wahls said. “I stand with these workers and the growing coalition fighting to ensure their voices are heard.”
Costco’s Coralville location declined to comment.
