By JANICE PODSADA
The Hartford Courant
Workers voted Sunday to accept Stop & Shop Supermarket Co.'s new
three-year contract proposal after union officials recommended its approval,
ending weeks of negotiations and the threat of a strike by 43,000 employees.
All five locals of the United Food and Commercial Workers Union in New
England ratified the contract Sunday at union meetings held in Connecticut,
Massachusetts and Rhode Island.
"After many months of difficult negotiations, we were able to secure a
fair and improved contract settlement," said Mark Espinosa, president of
UFCW Local 919, which is based in Farmington.
Union leaders and company officials said they were relieved that a strike
had been averted. Last month, all five locals authorized a strike if talks
broke down. But union leaders said their persistence at the bargaining table
paid off.
"By continuing the negotiations and not striking, we were able to go
forward," said Brian Petronella, president of UFCW Local 371, based in
Westport. "If we had gone on strike, we wouldn't have been able to get this
kind of agreement. We hung in there."
Talks revolved around wages and retirement benefits, but a contentious
debate over health care coverage proved to be the sticking point in recent
weeks, union leaders said.
Ultimately, both sides agreed to concessions to settle health care
issues, which affected full-time and part-time employees. The latter make up
80 percent of the company's workforce.
"The company's goal during negotiations was to reach a competitive
agreement that would allow Stop & Shop to remain the leading supermarket in
the marketplace," said Robert Keane, a spokesman for Stop & Shop, which is
owned by the Dutch conglomerate Royal Ahold NV and is based in Quincy, Mass.
"We believe this new contract will meet that goal and provide significantly
improved benefits and wages."
Under the new contract, Stop & Shop will no longer pay 100 percent of
full-time employees' health care premiums.
Next year, full-time workers will pay for a portion of their health care
premiums, though not until March 2008. At that point, the rate for
individuals will be $5 a week; for a spouse and one child, $10 a week; and
for a family, $15 a week, Petronella said.
Petronella described those paycheck deductions as significantly less than
what the company initially demanded. At the start of negotiations,
Petronella said, Stop & Shop wanted full-time workers to begin paying up to
$28 a week toward their health care premiums.
In a nod to part-time workers, Stop & Shop agreed to continue to pay for
100 percent of their health care premiums, Petronella said.
The new contract also reduces the eligibility period that new part-time
employees - those working between 15 and 35 hours a week - must wait before
they're eligible to receive health care benefits. New part-time employees
can now receive coverage after one year's employment instead of two.
However, current part-time workers must still wait two years before
receiving those benefits, Petronella said.
"It's a great contract they gave us," said Keith Sirois, a full-time
worker at the Super Stop & Shop in Middletown. "They gave the part-timers
what we wanted for them," Sirois said, referring to the 12 months the union
was able to shave off the waiting period.
The new contract also provides full-time employees with a $25-a-week pay
increase retroactive to Feb. 17. In 2008 and 2009, full-time employees will
receive annual raises of $20 a week.
Part-time workers will receive a 35-cents -an-hour increase retroactive
to Feb. 17. Next year and the year following they will receive two
additional 35-cents -an-hour pay increases, for a total of $1.05 in hourly
rate increases over the period of the three-year contract, Petronella said.
In Connecticut, 3,000 members of UFCW Local 919 gathered Sunday morning
at the Crowne Plaza in Cromwell and voted overwhelmingly to ratify the new
contract. Another 1,000 members of Local 371 met at 9 a.m. Sunday at the
Klein Auditorium in Bridgeport and also gave their unanimous approval,
Petronella said.
Last month, while negotiations were going on, Stop & Shop implied in
newspaper ads that it couldn't agree to union demands and remain
competitive. The company describes itself as the only predominantly
unionized supermarket chain operating in Connecticut, Massachusetts and
Rhode Island. However, Stop & Shop enjoys an estimated 45 percent share of
Connecticut's retail market sales, making it the state's dominant grocery
chain, according to Ronald Cotterill, an economics professor at the
University of Connecticut.
Negotiations resumed Thursday after a two-day break. By Friday evening, a
strike seemed imminent, judging by the bleak message that union leaders had
posted on their websites saying that "no progress" had been made.
The apparent turnaround in negotiations occurred during a marathon
session that lasted from Friday night until 7 p.m. Saturday, Petronella
said.
Union leaders praised its membership for standing firm.
"Stop & Shop tried to play hard ball with us. But our members stood
strong and so instead of losing significant benefits, we came out on top,"
said Scott L. Macey, president of UFCW Local 1459, based in Springfield.