Sysco Teamsters Win Big: 34% Raise in Spokane Sets National Tone

SPOKANE, WA – February 02, 2026 – In a significant victory for organized labor, more than 50 Sysco drivers in Spokane, represented by Teamsters Local 690, have ratified a new four-year contract that includes a staggering 34 percent wage increase. The agreement, secured after workers overwhelmingly voted to authorize a strike, also delivers reduced healthcare costs, increased pension contributions, and expanded vacation time, setting a new benchmark for negotiations with the foodservice giant.

The deal averts a potential work stoppage that could have disrupted food distribution across the Inland Northwest and marks another major win for the Teamsters in their national campaign to secure a larger share of corporate profits for the workers who generate them.

A Landmark Victory in Spokane

The new collective bargaining agreement is being hailed by union members as a transformative achievement. For the drivers who transport food and supplies to restaurants, hospitals, and schools, the contract provides immediate and substantial financial relief.

"This is the strongest agreement we have ever negotiated at Sysco, and it is the result of the unity and determination of these workers," said Larry Kroetch, Secretary-Treasurer of Local 690. Kroetch emphasized that the credible threat of a strike was the decisive factor. "Our members made it clear they were prepared to strike if the company failed to offer a contract that respected their hard work."

This sentiment was echoed by the workers themselves. The combination of a major pay raise with lower out-of-pocket health insurance costs represents a significant boost to their families' economic stability.

"Heading into work knowing we are covered under such a strong Teamsters contract is exciting for all of us," said Gerald Strong, a driver at Sysco and a member of Local 690. "By far, this is the best contract we have ever negotiated. Winning higher wages while lowering our health care costs means real security for our families for years to come."

Profits, Paychecks, and Corporate Pressure

The Spokane negotiation unfolded against a backdrop of Sysco's robust financial performance. The Houston-based company is one of the largest and most profitable foodservice providers in the world, reporting $1.95 billion in net profits in 2024, a year-over-year increase of over 10 percent. For its 2024 fiscal year, the corporation generated more than $78 billion in sales.

This immense profitability became a central theme in the contract dispute. The Teamsters have increasingly argued that the company's record earnings are not being adequately shared with its frontline workforce. The union's national strategy has focused on contrasting these billion-dollar profits with the wages and working conditions of the drivers and warehouse workers who form the backbone of the company's logistics network.

While Sysco has maintained that it aims to provide competitive compensation and has engaged in good-faith negotiations, it has also faced a more aggressive and coordinated union strategy. The company, which has approximately 14% of its 75,000 employees unionized, has previously noted that it views some Teamsters' actions as part of a broader national campaign. The Spokane outcome suggests this campaign is proving highly effective, leveraging public and internal pressure to force the company to offer historically strong contracts.

A Bellwether for the Foodservice Industry?

The Spokane agreement is not an isolated event. It is the latest in a string of victories for Sysco Teamsters across the country, suggesting a significant shift in the balance of power within the foodservice and logistics industries. This win closely mirrors another landmark deal ratified in December, which established the first-ever regional contract covering over 1,000 Sysco drivers and warehouse workers in Northern California and Nevada. That agreement also included a 34% wage increase and substantial benefit improvements.

This strategy of securing a strong contract in one location and using it as a model—a practice known as pattern bargaining—is a classic union tactic being deployed with renewed vigor. The Teamsters' high-profile success in securing a historic contract with UPS in 2023, which included major wage gains and workplace protections, appears to have galvanized its efforts across other sectors. That deal, valued at an estimated $30 billion, demonstrated the power of a unified membership and the credible threat of a national strike.

"This contract shows what's possible when workers stand together and refuse to settle for less," said Tom Erickson, Director of the Teamsters Warehouse Division, regarding the Spokane victory. "Sysco Teamsters across the country are sending a clear message that the people who make this company successful expect contracts that match its record profits."

The Ripple Effect: Eyes on Montana and Chicago

The timing of the Spokane ratification could not be more critical. This month, contracts are set to expire for five local unions representing over 500 Sysco Teamsters in Montana and Chicago. The Spokane agreement now becomes the de facto standard, creating immense pressure on Sysco to offer a comparable package in these upcoming negotiations.

Union leaders have been explicit that the Spokane deal sets the stage for these talks. The success in Washington, following the regional agreement in the West, has solidified a powerful precedent. Workers in Montana and Chicago will now enter their own negotiations with the expectation of achieving similar historic gains, armed with the knowledge that a unified front can force significant concessions.

Locally, the economic impact in Spokane is expected to be immediate. The substantial wage increases will inject more money into the community through consumer spending. Furthermore, the victory sets a powerful precedent for other employers in the Pacific Northwest's competitive logistics and transportation sector. Other companies may now face pressure to raise wages and improve benefits to attract and retain talent in a tight labor market, while the win serves as a potent organizing tool for unions seeking to expand their footprint in the region. As Sysco prepares for its next round of bargaining, the entire industry will be watching to see if the "Spokane effect" continues to ripple across the country.