Costco faces backlash amid wage battle | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

If there’s one thing Costco is known for, it’s putting customers first.

Costco is well aware that plenty of stores do not charge an annual fee just to get in the door. To get customers to keep paying those fees, Costco needs to make sure members are getting great value for their money.

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Thankfully, there’s lots to love about Costco, from the ultra-low prices to the exciting inventory.

Costco tends to liken the warehouse club shopping experience to a treasure hunt, because members never really know what interesting new products they’re going to stumble upon.

Costco also has one of the best customer service policies in all of retail. Members can, for the most part, bring back any item for a refund, even if it’s been months or, in some cases, years, since they made the purchase.

All of this is because reputation is very important to Costco. Costco wants to be known as a customer-first retailer, so it’s willing to be flexible to uphold its good name.

Costco faces backlash amid a wage battle.

Image source&colon; Tim Boyle/Getty Images

Costco is said to treat employees well

The retail industry isn’t exactly known as a great space to work in. Many retailers offer minimal wages, which explains why there tends to be a lot of turnover.

Costco, on the other hand, has a much different reputation.

At Costco, workers tend to stay with the company and work their way up for a reason – they’re treated well from the start.

Not only is Costco’s average hourly wage for U.S. employees more than $30 per hour, but the company also gives workers a host of benefits. These include paid time off, access to a retirement plan, and health care.

Costco also offers perks such as dental care, vision insurance, and disability insurance for workers. The company feels that investing in great employees can lead to a better customer experience.

Costco accused of stiffing union drivers

Like other retailers, Costco has an extensive logistics network that allows it to stock its warehouse club stores with the goods members want. But now, one team of drivers is crying foul against Costco.

Teamsters Local 174 has filed several complaints with the Washington State Department of Labor and Industries, alleging that Costco has withheld pay from its fleet drivers. A group of 150 drivers in Sumner says Costco has “yet to pay a cent” in the wake of a recent agreement made between the retail giant and the union.

Under that agreement, drivers were eligible for a big pay bump, as well as pensions and other perks. However, the union alleges that Costco has not paid up as it was supposed to.

“Costco likes to pretend it’s a good employer, ” said Local 174 Secretary-Treasurer Rick Hicks. “The company has no excuse for withholding wages. It’s wage theft, plain and simple, and we’re not backing down until every worker is paid in full.”

The Teamsters represent over 1.3 million workers across the country, including more than 18,000 Costco employees.

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Of course, if Costco isn’t able to resolve the conflict, it risks not only tarnishing its reputation, but also a full-blown strike among fleet drivers. That could lead to inventory shortages at warehouse club stores all over the country – and leave members feeling extremely frustrated.

There’s already a fear that once tariffs are un-paused, supply chains will suffer. The last thing Costco or its members need right now is another wrench in the works.

Maurie Backman owns shares of Costco.