Catherwood LibraryILR School

Costco Wholesale, a massive retailer and the largest American membership-only warehouse club, has just decided to cease all business with Pacific 9 Transportation, a large trucking company based in Southern California. Costco’s decision took place following allegations that Pacific 9 Transportation utilizes a system whereby they trap their drivers in debt to the company and force them to work overtime for wages insufficient to support themselves and their families. These practices, if substantiated, would clearly constitute labor violations. Recently there has been an upsurge in scrutinizing transportation companies’ labor practices following revealing investigations that showed just how salient this debt structure is within the industry. In addition, the corporate giants that do business with these companies, such as Costco and Walmart, have increasingly been called to look further into the possible labor violations of their affiliates by politicians and labor groups alike.