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Are the Supermarket Employers Lying About Their Health Plan?

Health Benefits Experts Challenge Supermarket Employer Claims

Ad Campaign Launches Tuesday, December 16th.

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Striking supermarket workers continue to expose Safeway’s ‘big lie’ about the health care issues driving the three-month long strike in Southern California.  The United Food and Commercial Workers International Union (UFCW) will run full-page advertisements in the Los Angeles Times, Orange County Register, Bakersfield Californian and the San Diego Union Tribune.

The ad reprints an editorial written by health benefits experts, E. Richard Brown, Director of the UCLA Center for Health Policy Research, and Richard Kronick, a Professor in the Department of Family and Preventative Medicine at UC-San Diego.  Their analysis, titled “Supermarkets ‘Offer’ to End Affordable Health Care,” appeared in the San Francisco Chronicle on December 8, 2003.

“It’s time we put an end to Safeway’s big lie about the health care proposals.  Brown and Kronick explain better than anyone exactly how the supermarkets’ proposals would mean and end to health benefits in this industry,” said Doug Dority, UFCW International President.

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Holding the Line for Health Care: Support Builds with Labor Movement Contributions

Today, Southern California supermarket workers’ fight to hold the line for health care in the supermarket industry got a major boost with sizeable contributions from  the International Union of Electronic, Electrical, Salaried, Machine and Furniture Workers-Communications Workers of America (IUE-CWA) and the American Income Life Insurance Company (AIL).   The 70,000 members of the United Food and Commercial Workers International Union have been on strike since October 11, 2003 against Safeway, Kroger and Albertsons.

 
 UFCW International President Doug Dority holding the line at a Safeway store in Washington, DC, joined IUE-CWA President Edward Fire and AIL Vice President Jules Pagano.

IUE-CWA President Edward Fire met with strikers on the picket lines at a Washington, DC, Safeway store and presented his union’s $100,000 contribution to the Hold the Line for Health Care Strike Fund.

“We stand in full support of the UFCW members’ fight to maintain health care benefits.   We fought this same battle with General Electric earlier this year and employers across the country continue the attack on system of health care at work. We need a national public policy solution so that workers and their families no longer have to walk the streets to maintain access to health care,” said Fire.

As the Industrial Division of the Communications Workers of America, the IUE-CWA represents 80,000 manufacturing workers including 14,000 workers at General Electric.

Roger Smith, President, American Income Life, along with Jules Pagano, Vice President, and Hugh Walsh, Assistant Vice President, presented strikers with a $10,000 contribution from AIL and pledged to contribute $10,000 per month for the duration of the strike.

“”AIL, a wall to wall union company, feels we have a responsibility to support working families and we are proud to support the UFCW in this national fight to hold the line for health care,”" said Jules Pagano, AIL Vice President.

AIL is a nationally recognized insurance carrier that provides services and policies to labor unions and working families.  Headquartered in Waco, Texas, American Income is licensed in 49 states, the District of Columbia, Canada, and New Zealand.

The Transportation Communications International Union (TCU) also pledged a $15,000 contribution to the Hold the Line for Health Care Strike Fund.  TCU President Robert Scardelletti also sent a letter to all TCU local unions encouraging additional contributions.

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California Congressman Challenges Safeway

Congressman Tom Lantos (CA-12) has challenged Safeway’s claims that the company is only seeking modest changes in employee health benefits in the Southern California supermarket strike.

In a letter to Safeway CEO, Steve Burd, the California congressman went straight to the heart of the matter:

“”I have reviewed Safeway’s benefit funding proposal for new hires…on your company’s web site. Your proposal will not provide any substantial benefits for new employees…it is obvious your intent is to eliminate health benefits in the future.”"

Safeway and two supermarket operators have waged a misinformation campaign designed to convince workers and the public that the grocery giants were only asking that current employees make a modest co-payment of $5 to $15 a week for comprehensive health benefits. The Lantos letter stripped away the facade from the companies campaign:

“”You conveniently ignore the impact of segregating new hires from current employees (a key component of the companies’ proposals is to eliminate any meaningful benefits for new employees)…As employees are replaced, the funding base will shrink until benefits ( for current employees) have to be cut or co-pays increased well beyond $5 to $15 a week.”"

Both new and current employees would ultimately wind up with excessive co-pays, scaled back benefits and finally the effective elimination of benefits. Lantos directly challenged the veracity of company statements on the impact of Safeway’s proposal, “”Mr. Burd, it appears your company is lying to workers, consumers and the public.”"

“”The bottom line,”" according to the Congressman,”"is that 70,000 jobs that now come with affordable family health coverage will not come with that coverage in the future.”"

The United Food and Commercial Workers International Union (UFCW) released today the letter dated November 21, 2003. Click here to read the full text of the letter.