Washington, D.C. – The United Food and Commercial Workers (UFCW) local unions and Kroger Company have announced today an agreement to improve and secure pension funds, or defined benefit pension plans, for over 170,000 retired and active Kroger workers. The pension plan, which will result from the merger of four plans, includes a ten-year review and will affect Kroger workers who are members of 14 UFCW local unions in 15 states, primarily in the Midwest and South.The combined plan will protect the current benefits of vested employees and enhance the benefits of new hires. The plan will also include automatic benefit increases as pay increases, with benefits proportionately pegged to salary levels, and will provide a more secure and stable pension fund in an unstable financial environment. The combined plan also includes a commitment by Kroger to pay off all of the unfunded liability in the markets covered by the 14 UFCW local unions. In a volatile financial environment, this plan represents a long term solution for a secure retirement for our hard working members who have chosen a career in the retail food industry, said UFCW International President Joseph T. Hansen. The UFCW is proud of our local union leaders and Kroger for working together toward an innovative solution for workers retirement security. Defined benefit pension plans are the most secure retirement system for workers. While many workers are forced to rely on their own investments, like 401 (k) plans, or have no retirement at all, UFCW members have retirement security through their pension benefits that provide for a monthly payment for their lifetime after they retire. Members of the 14 UFCW local unions are in the process of ratifying the new plan. Those members who have already met have overwhelmingly approved the proposal. More than 197,000 UFCW members work in Kroger stores across the country.
Kroger
Kroger Workers in Mid-Michigan Ratify New Contract
Michigan Kroger workers represented by the United Food and Commercial Workers (UFCW), Local 951 voted on Tuesday to approve a new three-year contract by a vote of 84 percent “yes” to 16 percent “no.”
“The proposal had the full recommendation of the bargaining committee as it preserved members’ health benefits and pension, and provided top rate wage increases, which was a significant accomplishment given Michigan’s challenging economy and high unemployment rate,” Marv Russow, UFCW Local 951′s president, said. “The committee felt this was the best contract possible under these circumstances. By their overwhelming ratification of the contract, I would say the membership agreed.”In November, Kroger members rejected the company’s first contract offer and authorized a strike. They had been working under a contract extension on the previous contract. “The last month has been stressful for Kroger members as there was a great deal of uncertainty about the future,” Russow said. “With the ratification of the new contract, they will have peace of mind and security for the next three years. Hopefully, the economy will turn around by 2014 and we can enter contract bargaining under improved circumstances.”
The UFCW 951 Kroger contract covers approximately 1,000 workers at 11 stores in greater Lansing, Jackson, and Mt. Pleasant. Headquartered in Grand Rapids, MI, UFCW Local 951 represents over 28,500 workers across Michigan in a variety of industries including retail food, food processing, nursing home, and retail drug, employed at several companies including Meijer, Kroger, Rite Aid, Plumb’s, Polly’s, and Harding’s.
UFCW Local 400 Members Ratify Kroger Contract
Three-Year Agreement Covers Workers in W.Va., Ohio, Ky.
Increases Compensation, Maintains Health & Retirement Security
CHARLESTON, W.Va., November 8 – Members of United Food & Commercial Workers Local 400 working at Kroger in West Virginia, Ohio and Kentucky ratified a new, three-year collective bargaining agreement that maintains their health and retirement security and increases their total compensation by an average of $3.10/hour over the life of the contract.
“Our members took an important step forward by ratifying this agreement,” said Local 400 President Tom McNutt. “At a time of economic difficulty, skyrocketing health care costs and pension funding challenges, they were able to maintain and improve their standard of living, health care coverage, retirement benefits and job security. This is a solid agreement that once again proves how vital union representation is to keeping middle class jobs alive in the retail sector of the economy.”
Negotiations were challenging with many difficult issues to resolve. But both sides bargained in good faith and the result is a win-win contract that helps Kroger workers while ensuring that the supermarket chain remains profitable and is well-positioned to expand its share of the market.
“It’s our members’ unparalleled productivity and quality service that makes Kroger profitable and I am pleased that our agreement recognizes this essential fact,” McNutt said. “I am equally pleased with the strong Solidarity our members showed throughout the negotiations-it was absolutely essential our success at the bargaining table.”
Instead of concessions, Local 400 members won a commitment from Kroger to make monthly contributions to their health and retirement funds in amounts the funds’ trustees determine are necessary to maintain existing benefits.
“Most experts project that retail is one sector of the economy expected to experience some of the greatest job growth in the years to come,” McNutt said. “That makes it all the more critical that retail jobs provide middle class compensation. Our agreement with Kroger shows how we can achieve this critical goal.”
UFCW Local 400 represents 40,000 members working in the retail food, health care, retail department store, food processing, service and other industries in West Virginia, Ohio, Kentucky, Virginia, Maryland, Tennessee, and Washington, D.C.