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Why Costco's new pay hike could backfire as union strike looms

1. 18,000 Costco workers may strike due to contract expiration. 2. Costco raises pay for non-union employees to over $30/hour. 3. Teamsters demand higher wages, asserting Costco's profits justify it. 4. Union members voted to strike if no agreement is reached. 5. Costco's moves might complicate union negotiations and public image.

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FAQ

Why Bearish?

Potential labor strike may disrupt operations and affect earnings. Past strikes have negatively impacted stock prices.

How important is it?

Labor relations directly impact operational efficiency and profitability for Costco.

Why Short Term?

Strike deadline is imminent, causing immediate concern for investors. Similar past events resulted in short-term price drops.

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