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January 17, 2008
Kroger Walks Out of
Negotiations, Ends Contract Extension in Memphis
Local 1529-In Memphis, Local 1529 has been bargaining in
good faith with the Kroger Company. Because of outstanding issues, Kroger
and Local 1529 agreed on contract extensions since the contract expired in
October.
However, during the last set of negotiations the Kroger
Company presented members with an unacceptable proposal, and then walked
away from the table. Furthermore, Kroger decided to end the most recent
contract extension as of midnight, January 12th.
One result of this extension ending is that Kroger will be
stopping dues check-off for members. This is simply an intimidation tactic
that Kroger is using to get Local 1529 members to agree to an unacceptable
contract proposal —one that does not reflect their hard work or the role
they play in making Kroger one of the most profitable companies in the
grocery industry.
Local 1529 has been attempting to negotiate the issue of
health care with Kroger for several months. They’re offering solutions,
putting out concrete proposals that would benefit both the company and 1529
members. On the other hand, Kroger is proposing to underfund members’ health
and welfare fund, which would almost certainly result in benefit cuts for
members and their families during the life of the contract.
Kroger has played this game before. In Houston, in Arkansas, and in Oregon,
members believed Kroger’s word that the health and welfare funds would be
adequately funded—and when health care costs went up, members suffered
benefit cuts.
David Dillon, the CEO of Kroger, likes to talk about how great employees
are. When reporting on the company’s record revenue and profits, he said,
"We challenged our associates to help us improve our connection with
customers. They accepted the challenge and raised the bar, as these market
share gains clearly show."
It is time that Kroger shares the success and profits of its growing
market share with the people Mr. Dillon says made it possible.
Unfortunately, Kroger claims they need to be competitive in the Memphis
area—but Kroger already has the number one market share in Memphis. Kroger
executives are making millions, while they attempt to strip health care
coverage from workers and their families. And that’s just not right.
We need to stand strong and send a message to Kroger—members will not be
bullied by the kind of intimidation tactics that the company is trying to
use. We will continue to stick together and speak up for a good contract
that protects affordable, quality health care for all Local 1529 members.
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