The looming threat of 18,000 Costco store employees heading to the picket lines appears less likely, with the Teamsters labor union announcing Saturday that it has reached a tentative agreement for a new contract with the grocery chain.

Costco and the Teamsters union have reached a tentative agreement on a new contract, avoiding a strike, the union said Saturday.

Costco and the Teamsters union came to a tentative contract agreement, averting a scheduled strike by its 18,000 union members in 56 stores.