The union representing Southern California
grocery workers accused three major markets Wednesday of
proposing cuts to employer health-care contributions that would
bankrupt a fund that buys employee coverage, a claim the markets
rejected."There is no way they are
going to bankrupt the trust fund," said Adena Tessler, a
spokeswoman for Albertsons, Ralphs and Vons.
The unions broke off contract talks earlier
this month because of the proposal and are asking the markets to
take responsibility if the reduced contributions end up
bankrupting the fund.
The unions believe the proposed reduction will
force workers to either pay higher premiums or accept reduced
coverage.
United Food and Commercial Workers says the
chains want to cut their contributions by almost 50 percent, to
$80 per week from $152 per week for each full-time worker.
The actual cost of employee health care,
including dependents, is about $2.95 an hour, or about $40
million a month for the 70,000 union workers in Southern
California, said Rick Icaza, president of UFCW local 770.
Tessler declined to confirm details because of
a news blackout imposed by a federal mediator running the talks.
The two sides have been negotiating since
before March 5, when the original three-year contract covering
almost 70,000 workers in Southern California expired.
The health-care fund has a surplus of $500
million.
New employees pay between $7 and $15 a week
for health care after the 12- to 18-month waiting period, while
veteran workers do not have a weekly contribution to their
health care.
The union planned to rally outside Ralphs'
headquarters in Compton today.