Issaquah, Washington - The Teamsters union announced that its Costco National Negotiating Committee had reached a tentative agreement for a new contract, averting a potential strike.

The Saturday news came as some 18,000 Costco workers in six states – California, Maryland, New Jersey, New York, Virginia, and Washington – were poised to walk off the job.

The agreement – details of which are still unknown – will go to union members for a vote before it is ratified.

Costco faced a January 31 deadline to present a fair contract proposal.

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Workers earlier in January voted by an overwhelming 85% margin to authorize a strike.

"Costco has two choices: respect the workers who made them a success or face a national strike," Teamsters General President Sean M. O’Brien said in a statement last month. "Costco Teamsters deserve an industry-leading contract that reflects the company’s massive profits. If Costco thinks they can exploit our members while raking in billions, we’ll shut them down."

Costco reported $254 billion in revenue and $7.4 billion in net profits in 2024, according to the union – up from $6.3 billion in 2023.