Costco Execs Admit They Failed As Workers Form Union

In December, Costco workers in Norfolk, Virginia voted to unionize in a bid to improve working conditions at the wholesale retail chain.

The group of 238 workers in Norfolk is set to join 18,000 Teamsters at Costco nationwide, according to the union. I Photo: Mike Mozart Flickr

While most firms respond aggressively to organizing efforts, Costco delivered a surprising response to the union win, as reported by Parija Kavilanz for CNN.

The group of 238 workers in Norfolk is set to join 18,000 Teamsters at Costco nationwide, according to the union.

Specifically, the workers said their hope in becoming Teamsters is to have a voice asking for higher wages, pension contributions, bonuses, and a more flexible attendance policy, among other workplace improvements.

While many other companies have adopted an antagonistic approach to their unionizing workers, Costco’s former CEO Craig Jelinek and current CEO Ron Vachris tag-teamed on a memo sent to employees in late December in which they said they were “not disappointed in our employees; we’re disappointed in ourselves as managers and leaders.”

They added: “The fact that a majority of Norfolk employees felt that they wanted or needed a union constitutes a failure on our part.” Jelinek stepped down as CEO on January 1 after being in that role since 2012.

Vachris is a 40-year Costco veteran who began working at the retailer as a forklift driver.

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