May 31, 2007
 
 
Union say grocers' proposal endangers health-care fund
Management calls workers claims foolish.

 
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.