⚖️ What Are the Downsides of Unionizing — and Why They’re Worth It
Unionizing isn’t without its costs — but when you look at the facts, the benefits far outweigh the drawbacks. Let’s walk through the most common concerns and how they’re addressed:
💸 Union Dues: A Fair Price for Representation
Dues are based on your wage and hours worked, so you’re never overpaying.
For full-time, topped-out employees, dues are approximately $75/month.
But here’s the truth Costco didn’t advertise:
While negotiating with the Union in 2022, Costco quietly gave a $0.50/hour raise to non-union warehouses — a raise the Union was actively negotiating.
That’s $20/week, or $80/month for full-time workers — which fully offsets your dues, and that’s from just one negotiation cycle.
✅ Dues pay for themselves — and then some — through negotiated raises.
✅ As more warehouses unionize, bargaining power increases, and so do the wins.
🧾 Initiation Fees: Waived!
The Union has agreed to waive all initiation fees for us.
❌ Loss of $500 401(k) Match? Offset 10x by Pension
Yes, Costco will revoke the $500/year 401(k) match for union employees. But compare that to what you gain:
The Union pension provides a $2.56/hour contribution into a defined benefit plan.
At 40 hours/week, that equals over $5,300 per year in employer-funded retirement.
✅ That’s over 10x more than the 401(k) match Costco removes.
✅ And the pension isn’t tied to the stock market or your own contributions.
😕 “Do Unions Even Work?”
Absolutely — and Costco’s own history proves it.
When Price Club merged with Costco, many unionized locations were grandfathered in, thanks to Sol Price’s pro-union vision. Sol encouraged employees to unionize so they could:
Negotiate fair contracts
Maintain dignity and respect at work
Have a voice in workplace conditions
Unionized Costco warehouses have led the way in setting standards for:
Wages
Benefits
Protections
Scheduling fairness
Costco knows that if union warehouses gain a clear advantage, more employees will want in — that’s why they often try to match the union-negotiated standards even at non-union stores.
The union sets the bar. The rest of the company follows it to avoid mass organizing.
🛡️ In the End
The downsides of unionizing are real — but they are minimal and manageable, especially when stacked against the real, lasting protections and pay increases that come with a union contract. This isn’t about paying into a system — it’s about investing in a better future for yourself and your coworkers.