The United Food and Commercial Workers union reached an agreement with the Stop ‘ Shop to avert a strike Sunday morning – something several other major supermarket chains across the nation have failed to do – four hours after the initial contract deadline.
Hours later, the union, which represents some 42,000 Stop ‘ Shop employees, overwhelmingly voted to ratify the contract, officially securing the deal.
In addition to a $25 per week annual pay hike, the proposed three-year plan calls for continued free healthcare benefits for union members – the primary issue that separated labor and management. Stop ‘ Shop was asking employees to contribute 20 percent of their healthcare costs, but the union stood firmly opposed.
Scott Macey, president of UFCW Local 1459 in Springfield, one of the five union chapters involved in the negotiations, said the UFCW and Stop ‘ Shop worked until nearly 5 a.m. Sunday to produce a deal.
Macey questioned Stop ‘ Shop’s early proposal to pass healthcare costs on to employees, claiming the company was the jewel of its parent company – Ahold – and earned a net profit of $770 million last year.
The last minute accord surprised Jeff Bollen, the Secretary-Treasurer for UFCW Local 1445 in Dedham. Bollen said until Sunday’s 11th hour agreement, there had been “very little progress” and the union appeared headed for a strike.
Until Sunday’s deal, Bollen was worried that Stop ‘ Shop was trying to “Walmart-ize” healthcare – he said only 40 percent of Wal-Mart employees can afford adequate health insurance.
As negotiations neared the deadline, tensions grew. “If Stop ‘ Shop decides to put people out on the street, they are going to end up losing money that they don’t need to,” Macey said Friday.
Stop ‘ Shop spokesman Rick Stockwood said he had confidence in the contract negotiations from the beginning because the company was offering a contract which would “include a wage increase as well as a solid health plan,” the two primary demands of the union.
Stop ‘ Shop representative Faith Weiner echoed Stockwood’s statement.
Prior to Sunday’s talks, Weiner said Stop ‘ Shop was “cautiously optimistic” about avoiding a strike and that the company was “committed to maintaining a fair contract with good health benefits that aligns with industry standards.”
Although Stop ‘ Shop averted a strike, picket lines of supermarket employees have sprung up across the nation over the same central issue – healthcare.
On the west coast, UFCW strikers are in their 18th week of picketing three of the country’s largest supermarket chains – Albertson’s, Safeway and Ralph’s – over how much employees are being asked to pay for their medical care, according to the Los Angeles Times.
“This is the biggest attack on supermarket employees in history,” Bollen said of the dispute over health benefits. He said “corporate greed” caused the profitable companies to try to take away employee health care benefits.
As for Stop ‘ Shop, Macey said he was happy with the results.
“Now, everyone goes back to work to try and keep Stop ‘ Shop number one in New England,” he said.