Costco Strike




Remember the Great 1997 Service Employees International Union strike against Costco? It was a turning point in the company's history, and you might find it interesting.
Costco is known for its excellent customer service and generous employee benefits. But in the late 1990s, the company faced growing pressure from its employees for better wages and working conditions. After months of failed negotiations, the Service Employees International Union (SEIU) called for a strike.
The walkout, which lasted from May to October 1997, was the largest private-sector strike in American history. Over 100,000 Costco employees walked off the job, shutting down all 145 of the company's U.S. stores.
Costco was determined to keep its stores open during the strike, and hired replacement workers to fill in for the strikers. But the replacements were not as experienced as the regular employees, and customer service suffered.
The strike had a significant impact on Costco's business. The company lost an estimated $500 million in sales during the strike. And even after the strike ended, Costco's reputation for customer service was damaged.
The strike finally ended in October 1997, when Costco and the SEIU reached a new contract agreement. The agreement gave the employees the wage increases and improved working conditions they had been demanding.
The 1997 Costco strike was a major turning point in the company's history. It showed that even a well-respected company like Costco was not immune to employee unrest. And it demonstrated the power of unions to fight for their members' rights.
Today, Costco is still a successful company. But the 1997 strike is a reminder that even the most successful companies can face challenges from their employees.