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Costco, Teamsters, reach 'tentative agreement' likely averting strike as company's DEI controversy rages on

1. Costco reached a tentative agreement with Teamsters, avoiding a major strike. 2. Hourly wages for many workers will increase to over $30 in three years. 3. Costco faces criticism for not sharing profits with workers amid record earnings. 4. Shareholders rejected anti-DEI proposals despite mounting pressure from state AGs. 5. Debate continues over Costco's commitment to its DEI policies amid external pressures.

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FAQ

Why Bullish?

Tentative agreement with Teamsters reduces imminent strike risks, stabilizing operations. Previous negotiations have shown such agreements usually lead to positive market reactions.

How important is it?

Labor agreements significantly affect operational costs and workforce stability; hence considerable impact. The ongoing dialogue around wages amidst rising profits is a crucial indicator for stakeholders.

Why Short Term?

Initial impact expected as negotiations stabilize the workforce; however, long-term concerns remain. Market sentiment often shifts rapidly with labor negotiations.

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