Cannot compress any file I get a popup "The contents list can’t be created for compressing."
every time when I try to compress a file.

And also thumbnail preview is not working. 

I am sure if both issues are related but they both happened today.

I've tried repairing disk permissions, deleting finder plist, restart but none of this works.

I am running Yosemite 10.10.1

Any suggestion?

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I went to Apple Store and they can't fix this.
They reinstall the Mac for me.

Thanks for all answers.
Run the following commands in order in Terminal. Same issue for me and fixed it. I'm not sure what's causing it but I have to run it every so often to fix it.

sudo mkdir /private/tmp
sudo chmod 0777 /private/tmp