Costco employees at a Southeastern Virginia store decided to unionize last month. It is not the first instance of unionization within Costco, but it's still rare. Only about 5 percent of Costco's 208,000 workers are part of a union.
What stands out in this situation is not the act of unionizing itself. This movement has gained momentum across various companies, with Starbucks leading as a prime example of successful union campaigns. Instead, how Costco reacted to the employees' decision is drawing attention.
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Costco Employees' Concerns Acknowledged by Top Executives
In response to the recent union vote by their employees, Costco CEO Craig Jelinek and President Ron Vachris released a letter that stands out for its approach. Rather than justifying the company's stance, they acknowledged a core issue: the employees who unionized felt their voices were not being heard.
Last week, Costco employees in Norfolk decided to vote narrowly to join the Teamsters union. The company's top brass expressed their feelings about this outcome. 'To be honest, we're disappointed by the result in Norfolk, not in our employees but in ourselves as leaders. The fact that most of our Norfolk team felt the need for a union shows we've fallen short,' they said.
The vote, which ended with 111 in favor and 92 against unionizing, marks a significant shift. The Teamsters union, representing over a million workers in various sectors, highlighted the reasons behind the move. Desires for improved job safety drove Costco workers, a stronger voice in the workplace, and a fairer process for addressing grievances.
This victory for the Teamsters is notable as it's the first successful organizing effort among Costco workers in two decades. However, the history of unionized workers at Costco dates back to 1993. It was when Costco acquired Price Club, whose employees were already represented by the Teamsters.
"We're not anti-union, but our core value of 'taking care of our employees' has never been the result of any union," Jelinek and Vachris wrote.
Contrasting Approaches: Costco and Starbucks on Unionization
Recent unionization efforts have placed Costco and Starbucks in the spotlight, revealing differing responses from each company. Unlike Costco's more accepting stance, Starbucks has faced criticism for its adverse reaction to employee unionization efforts.
In a notable case, a Colorado court ordered Starbucks to reinstate a union leader, Alendrabe 'Len' Harris, after ruling her termination unjust. Harris told CBS News about a temporary manager's harsh actions, like firing employees for minor lateness or dress code violations.
Harris herself was fired for allegedly 'mishandling the store safe.'However, the court found this decision too severe, as Starbucks usually follows a progressive discipline approach, leading to the judge ruling in Harris's favor.
This incident suggests retaliation against unionization, which is illegal even under at-will employment laws. Employers cannot retaliate against employees for discussing work conditions or unionizing.
Despite these issues at Starbucks, only 4 percent of their stores have voted to unionize, compared to 5 percent of Costco's workforce being union members.
This difference might seem minor, but it's significant considering the varying size of individual Starbucks locations. This situation highlights the impact of a company's public response on its image during unionization efforts."
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