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Costco and Teamsters union reach tentative agreement to avoid strike

1. Costco and Teamsters reached a tentative deal to avoid strikes. 2. The union represents 18,000 workers anticipating job action. 3. Key issues include wages, pensions, and union rights protections. 4. Workers previously showed 85% support for possible strike action. 5. Costco's upcoming Employee Agreement promises pay raises over $30/hour.

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FAQ

Why Bullish?

The tentative deal reduces strike risk, which can stabilize operations and profits. Past union strikes have negatively impacted stock performance.

How important is it?

The tentative agreement impacts labor stability, crucial for Costco's operational efficiency. A stable workforce likely leads to consistent revenue performance.

Why Short Term?

The immediate resolution of labor negotiations can boost investor confidence. Past instances show that immediate labor peace positively affects stock stability.

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