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 - As transportation and logistics continue to make the produce industry go round, labor practices within the supply chain are coming into the spotlight as consumers migrate towards ethical and sustainable brands. According to USA Today, Costco Wholesale has halted all business with California trucking company Pacific 9 Transportation.


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. That report stated the transportation company has been accused of unfair labor practices towards its drivers. Soon after, Costco Wholesale dropped Pacific 9, noted as one of the largest port trucking companies in Southern California.


Costco storefront


In addition to Costco, other companies responding to the investigate trucking practices include Walmart and Hewlett-Packard.


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.”


How will shifts in awareness continue to impact our industry up and down the supply chain? Stick with AndNowuKnow as we continue to report.


Costco Walmart


 
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