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.
In addition to Costco, several other major companies responded to the allegations—include 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.
“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.
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