Strike Not Expected With Contract Expiration
COLORADO SPRINGS – King Soopers’ employees have not authorized UFCW 7 to call a strike when the contract ends at midnight May 30. King Soopers says they expect employees tokeep working as usual, only without a contract. All wages and benefits will continue to be paid at the current rate.
Yesterday, UFCW Local 7 turned down King Soopers’ offer to extend the current contract until June 15, 2009. This is exactly the same contract extension that Local 7 approved for Safeway on Wednesday, May 27. The only employees who were given the opportunity by the UFCW 7 to “vote” on the June 15th extension proposal were in attendance at the negotiation site and represent less than two percent of all King Soopers’ employees. Contrary to the union’s claim, there is no mention of any lockout in the contract extension proposal. “The lockout agreement between King Soopers and Safeway was signed several weeks ago. It is an option only if the other company is struck by UFCW Local 7,” said Diane Mulligan, King Soopers ‘
Spokesperson.
The union continues to cite the two tier wage system. Local 7 agreed and the employees voted to accept this provision in the 2003 contract. It was a way to maintain the wages and benefits that current employees were receiving and respond to the increased non-union, low cost grocery competition in the Colorado market. The lower tier only affects new hires as they move through pay progressions. Once they achieve “Journeyman” status their pay rate is the same as those in the higher tier. Finally, the pension plan has lost approximately 30% in value since the Stock Market decline. The union would like to postpone making any changes to the pension for at least a year. It would be irresponsible for King Soopers to ignore the current realities of the economy. Experts agree that it is unlikely anyone will be able to invest their way out of the current losses. Despite the losses, employees covered under the pension will not loose any normal retirement benefits earned through the end of this contract. The company has agreed to increase contributions by more than $35 million to help make up the shortfall over the next 5 years of the contract. There will need to be adjustments in future benefits. Early retirement is still an option on the table.
“The union has not made any significant changes to their proposal on wages or pension since the beginning of negotiations. It is time for the foot dragging to stop and for our employees to be given the right to have their collective voices heard on our proposal. Our June 15th extension proposal is still on the table and we seriously hope the union will reconsider its position.” said Mulligan.
