April 29, 2009

Update on Local 555 Negotiations in Portland Area

Dear Portland Area CCK, Grocery, and Meat UFCW Local 555 Members –

Over the last two days we have been at the bargaining table with your employers. We would like to tell you we have a tentative deal, however, the need to negotiate the best contract has prevented us from moving so quickly. We are not interested in making just any deal -- we want an acceptable deal. UFCW 555 members deserve the best possible deal, even in hard economic times.

The Portland Bargaining Committee is united and will continue to stand steadfast, striving for success, during these tough negotiations. Current negotiations broke midday on April 29, 2009 because new information regarding Health & Welfare was provided by a consultant. The numbers indicate that previous projections may be inaccurate, thus needing reanalysis. As a result, your Union Bargaining Committee did not feel comfortable continuing to negotiate your contract based on uncertainties and/or bad assumptions. We believe that the previously used figures, related to costs, is severely under-projected and inaccurate. We have asked to have the numbers reevaluated so that your new contract does not grossly underestimate the money needed to ensure you and your family are taken care of. This will take time. We want to make improvements in the plan, however, we cannot move forward until basic funding is assured.

Below are other issues facing us at the bargaining table:

• New Hires – The employers wanted to significantly limit benefits on new hires. One example is no overtime after eight hours. The Union Committee let the employers know that this was unacceptable. Currently, most of these issues have been taken off the table.

• Wages – Originally when the employers came to the table they wanted to continue with the old practice of forgoing real wage increases with bonuses. The Union Committee stood strong and told the employers “No!” Time after time the Union Committee told the employers that bonuses were not acceptable. The employers are now listening but we still have work to do when it comes to acceptable wages.

• Pensions – This issue is important to all of us. The Union Trustees moved to file the “Green Status” extension with the IRS to give the market time to stabilize and to provide time for the rules governing the Pension Protection Act of 2006 to be written. Unfortunately, on February 11, 2009, the Employer Trustees voted against the Union Trustee position resulting in a deadlock. As a result, participants in the Oregon Retail Employee Pension Trust will be receiving a letter explaining the “Red Zone – Critical Status” that has been submitted. It is our belief that the employers may have wanted green status but falsely thought the Union needed it more and that we would rush into a contract in order to get the status changed prior to the April 30th IRS deadline.

Rushing into a contract satisfies no one, except maybe the employers, and it is unacceptable to rush into a bad contract. The committee has seen a change in the demeanor of the employers. The solidarity of the members as a result of the contract campaign is having an effect. We encourage everyone to stay strong and stay united.

Your Union Bargaining Committee:

Dan Clay, Jeff Anderson, Ken Spray, Lynda Hart, Jeff McDonald, Ian Young, Judy Caire, Lisa Brinson, Carolyn Doll, Michael Miller, Moe Moar, Cherlyn Patterson, Jerry Rogness, and Stuart Fishman