Tigard, Oregon – On August 19th, the UFCW Local 555 Bargaining Committee met with representatives from Kroger, Fred Meyer and QFC for their 4th bargaining session.
Fred Meyer offered Local 555 a proposal that included wage increases and a one-time bonus. However, their offer would destabilize the employees’ healthcare plan by cost shifting approximately $30 million from the healthcare plan’s reserves to pay for the bonus. Fred Meyer’s proposal is just a corporate bait and switch to help offset the upcoming cost of their proposed purchase of Albertsons and Safeway stores. Fred Meyer’s proposal could also leave the employee healthcare plan defunct by the end of the contract.
“Instead of paying workers a portion of the massive fortune they’ve created for the Kroger corporation, the company is trying to pay members by raiding their own employees’ Health Trust. If the deal were accepted, it would be at the expense of the health and well-being of every single member. This deal isn’t only insulting, it’s dangerous. The membership stands united against this flagrant attempt to bankrupt our healthcare trust in exchange for a short-sighted PR stunt for Kroger.” – Dan Clay, President, UFCW Local 555
Fred Meyer also publicly claims that they are investing in Local 555’s members’ retirement, but have made absolutely zero proposals to increase retirement benefits. On August 20th, Local 555 filed an Unfair Labor Practice charge against Fred Meyer for advertising to employees that they have offered “additional funding for [their] pension,” when no proposal to increase pension funding has been presented in bargaining. Fred Meyer has failed to pay all currently required pension contributions and has failed to process Local 555’s grievances to correct this matter, leading Local 555 to file a lawsuit in Federal Court to compel Fred Meyer to process the grievance.
“Despite these insults, our Bargaining Committee has remained steadfast in holding Kroger to their public promises: to significantly invest in our workers and our community by significantly raising wages, improving our health insurance, and strengthening our retirement. Our Bargaining Committee has remained determined to address the major wage discrepancies throughout our Union’s area in Oregon and Washington, throughout the departments in our stores, and throughout the West Coast. If they can afford to pay it in Tacoma, what makes Portland or Eugene or Bend or Hood River or Coos Bay or Longview, or any other city or town in any of our wonderful communities here in Oregon and Washington, any different?” – Miles Eshaia, Communications Coordinator, UFCW Local 555.
UFCW Local 555 President Dan Clay will be meeting with Senator Ron Wyden to update him on our change in stance regarding the merger of Kroger and Albertsons. Additionally, he has received a request to update the FTC on the change in position, ahead of his testimony in the anti-trust lawsuit scheduled for later this year.
Negotiations with Fred Meyer are ongoing and will continue on August 23rd. A ULP Strike was authorized by the membership in the Portland Metro area on Friday, August 16th, but a strike date has not yet been set.