'We're disappointed in ourselves': Costco addresses union win in Norfolk

Retail firm Costco Wholesale has expressed disappointment over the recent decision of over 200 employees in Norfolk, Virginia, to join a union in December.

But instead of being disappointed in their employees, the retailer's leaders expressed disappointment in themselves.

This was the message stated in a letter to employees signed by former CEO Craig Jelinek and current CEO Ron Vachris in December, which was posted on a Reddit forum.

"We're not disappointed in our employees; we're disappointed in ourselves as managers and leaders. The fact that a majority of Norfolk employees felt that they wanted or needed a union constitutes a failure in our part," the letter said.

According to the executives, their organisation takes great pride in their relationships with their employees.

"We're not anti-union, but our core value of 'taking care of our employees' has never been the result of any union," they said.

In the same statement, they stressed their commitment to their employees, urging them to raise their doubts or concerns to their manager or any member of the leadership team.

"Our culture of trust, respect, and reliance upon each other is what makes Costco such a great company," the statement said.

The letter made rounds on social media as the organization took an unusual stance towards unionization efforts, which some major organizations have been to quell over the past year.

Union win at Norfolk

Overall, a total of 238 Costco employees in Norfolk voted in favour of joining the Teamsters Local 822 in December in a bid to improve working conditions.

Damion Thomas, a front-end cashier at Costco who worked on the organizing committee, said they "can't wait to be covered under a strong Teamster contract" that will bring "real change" to their jobs.

"This campaign was all about standing together as a group and taking control over our well-being in our workplace," Thomas said in a statement.

Teamsters, in the same statement, also pointed out that its first-ever national master agreement for Costco workers in October 2022 was cited by many in Norfolk as their "catalyst for organizing."

The agreement introduces various workplace changes, such as boosting wages and pension contributions by the employer, as well as providing members with higher semi-annual bonuses and a more flexible attendance policy, according to Teamster.

"This historic victory will reverberate across the nation. Every Costco worker in the U.S. needs to get on board and join the Teamsters," said Tom Erickson, Director of the Teamsters Warehouse Division and Teamsters Central Region International Vice President, in a statement.

The International Brotherhood of Teamsters represents 1.3 million employees in the United States, Canada, and Puerto Rico. There are more than 18,000 Teamsters at Costco in the US.