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Costco and Walmart to Drop Pacific 9 Transportation Due to Labor Practices

Costco and Walmart to Drop Pacific 9 Transportation Due to Labor Practices


ISSAQUAH, WA
Tuesday, September 5th, 2017

Costco Wholesale has halted all business with California trucking company Pacific 9 Transportation, according to a USA Today report. The major retailer has severed ties with the logistics provider after credible allegations surfaced that the California trucking company was abusing labor laws and forcing drivers to work overtime.

Earlier this month, four prominent senators sent letters to 16 retailers calling on them to lead the charge against the “shameful” labor practices revealed by an investigative report released in June. Soon after, Costco dropped Pacific 9, noted as one of the largest port trucking companies in Southern California.

Costco storefront

In addition to Costco, several other major companies responded to the allegationsinclude Walmart and Hewlett-Packard.

Hewlett-Packard responded by launching its own audit of the company’s labor practices, while Walmart pledged, in a response to the senators, that it would cancel contracts with any trucking company that did not provide “assurances” it was following fair labor practices.

Jay Jorgensen, Executive Vice President, Walmart“The stories profiled in that article are deeply concerning,” Walmart Executive Vice President Jay Jorgensen wrote of the USA Today Network investigation. “Any motor carrier that fails to comply with law, such as those alleged in the article, would be in violation of our contract and would therefore be subject to cancellation.”

While representatives from the retailers declined to comment on USA Today’s most current report, Chief Operating Officer for Pacific 9, Alan Ta, said that even before Costco withdrew, his company had stopped leasing trucks to drivers and launched a series of reforms to improve their pay.

Deli Market News will continue to report with major news on retailers and logistics providers in our industry.

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Costco Wholesale is a multi-billion dollar global retailer with warehouse club operations in eight countries.

We’re proud to serve customers in more than 25 countries worldwide and are committed to helping people save money so they can live a better life.