June 4, 2007

Houston Workers Demand that Kroger Bargain Fairly

UFCW Local 455 and 408 members were angry land disappointed last week when, after two days of negotiations, Kroger presented an insulting and outrageous proposal on health care. 

Under Kroger’s proposal, the company would steal the $10 million surplus that is the protection and cushion in workers' health and welfare fund. That puts their family’s health care coverage in jeopardy.

The last time UFCW members took Kroger at its word on health care, workers and families had to take a 19 percent reduction in benefits because there was a $10 million shortfall in the health and welfare fund. That didn’t hurt Kroger, since their loyal employees continued to work as hard as ever. It hurt the people who matter most in making Kroger successful--workers, families, and the community.

Why would Kroger want to hurt the people who make them profitable? It’s greed, pure and simple. Just last week, Kroger’s stock went up $1 per share, which equates to a $600 million dollar paycheck for the company. In one day.

What caused the stock to jump? Wal-Mart announced yesterday that it would be scaling back its plan on building new supercenters. Wal-Mart’s diminishing success is due in part to UFCW members across the country exposing Wal-Mart’s pattern of shifting health care costs onto taxpayers.

Now it seems that Kroger wants to do things the Wal-Mart way. The company has shown a pattern in negotiations, doing the same thing across the nation. In Louisiana, Arkansas, Indiana, and Oregon, as well as in Houston, members have seen reductions in benefits and rising co-pays as their health and welfare funds went bankrupt.

And now in Houston, Kroger’s trying to beat the same old dead horse. But members aren ’t going to be taken for a ride this time. Houston members have shown incredible solidarity throughout these difficult negotiations, and they will continue to fight for a fair contract—one that comes with affordable, quality health care for workers and their families. It’s what they deserve.

UFCW members and Kroger officials will meet again for negotiations this Thursday and Friday.