Workplace Fairness

Menu

Skip to main content

  • print
  • decrease text sizeincrease text size
    text

Public outrage gets results after Kroger tries to take back emergency payments to some workers

Share this post

When the independent news site Tennessee Holler tweeted a letter from Kroger to an employee, clawing back $461.60 in “overpaid” emergency pay and even threatening “further collection efforts,” outrage ensued. As it should. But the good news is, Kroger quickly paid attention to that outrage and backed off.

“We’ve instructed our payroll department to directly inform the small number of associates affected by the recent overpayments of Emergency Leave of Absence pay that we will not seek repayment,” a Kroger spokesperson said in response to questions.

That’s not to say Kroger is now a workers’ paradise. It’s still a company where the CEO was paid $21.1 million in 2019 while typical workers took in less than $27,000. Kroger also recently announced it was ending $2 per hour hazard pay … and then announced lump sum “thank you” bonuses. So there’s a little bit of a pattern of Kroger trying to cheap out its workers only to back off when people noticed. But that’s better than if the company stuck to its guns on its worst impulses.

Kroger isn’t the only company to have stopped paying hourly hazard pay. Starbucks, Target, and Amazon have all announced they’ll be ending the temporary increases—even though the danger hasn’t ended for workers. And there’s the fact that $2 to $3 more per hour was seen as a reasonable bonus for exposure to a potentially fatal disease, which is a devastating commentary on American corporate culture. (Or on American capitalism itself.)

This blog originally appeared at Daily Kos on May 19, 2020. Reprinted with permission.

About the Author: Laura Clawson has been a Daily Kos contributing editor since December 2006. Full-time staff since 2011, currently assistant managing editor.


Share this post

Workers Battle With Grocery Chains Over Obamacare Implementation

Share this post

Bruce VailUnions representing about 30,000 grocery workers in the Puget Sound region claimed a victory last week in a labor contract fight that centered on the implementation of Obamacare in the area’s biggest supermarket chains.

Western Washington state locals of the United Food & Commercial Workers (UFCW) and theTeamsters have been bargaining for months with representatives from Kroger, Safeway and Albertsons, all among the largest supermarket chains in the country. In addition to the elimination of health insurance coverage for 8,000 part-time workers, the initial demands from the grocery retailers included extended wage freezes and selective elimination of overtime pay, according to Seattle-based UFCW Local 21. The workers were within hours of beginning a strike before a last-minute deal was reached on October 21.

“I started working in the grocery business over 40 years ago. The proposals we saw this time from employers were some of the worst I’ve ever seen. They tried to turn us into Wal-Mart. They did not succeed,” commented Local 21 President Dave Schmitz in a formal statement  issued at the end of the ratification vote October 25.

Though union representatives like Schmitz are declaring the deal a victory, in reality, the ratification is only a partial success for workers. In Seattle, part-timers were not cut from insurance eligibility, as Kroger and the other chains had demanded, and no new healthcare costs were imposed, says spokesman Tom Geiger. But contract gains on wages were “modest,” Local 21 says, and other negotiating achievements were limited to beating back demands for sweeping concessions. For their part, the grocers maintained that the deal preserved “good wages, secure pensions and access to quality, affordable healthcare for [their] employees.”

Beginning Jan. 1, 2014, Puget Sound grocery workers will earn wages ranging from $9.42 an hour for newly hired checkout clerks to $19.50 for the highest-paid meat-cutters and other experienced food specialists, Geiger says. In keeping with a historical pattern in the area, this hourly rate for lowest-paid workers is 10 cents more than the state’s minimum wage (Washington currently has the highest minimum wage in the country at $9.19 and hour with a scheduled rise to $9.32 at the beginning of 2014). Rather than a general wage increase in the contract’s first year, each union member will receive a bonus payment based on the number of hours they worked over the last year. In the second and third years of the three-year contract, most union members will get a straight wage increase of 25 cents an hour each year.

But other potential improvements in wages or other benefits are being sacrificed, at least in part, in exchange for companies footing the rising bill of the existing health plan, the union reports. The grocery chains currently pay $4.38 for each hour worked by a union member into the health fund, with that figure rising to $4.86 over the life of the contract. That increase is expected to pay the costs of maintaining the health insurance plan at its current level of benefits for the next three years. Local 21 and UFCW declined to comment further on contract specifics, though Schmitz’s statement acknowledged that the unions “did not get everything they wanted.”

Because the Affordable Care Act requires many companies to pay more for employees’ healthcare, grocery worker unions across the country are facing stiff concessionary demands as their employers make the transition. Early this year, New England UFCW locals reached an uncomfortable compromise with the large Stop & Shop grocery chain that was similar in some ways to the Seattle agreement. In that case, UFCW agreed to eliminate healthcare eligibility for some part-timers, but only on the condition that the supermarket company provide financial and legal assistance in obtaining similar healthcare coverage from other sources for the dislocated workers. And similar contract struggles still under way in New YorkCincinnati, Baltimore, andWashington, D.C. show that union leaders nationwide are facing unusually heavy pressure as grocery chain corporations frequently try to cut their own costs at the expense of healthcare for employees.

In an October 28 message, Tony Speelman, lead negotiator for New York’s UFCW Local 1500, acknowledged that Obamacare “has presented unprecedented challenges” to workers and corporations alike. However, he said, Local 1500, which is now in negotiation for a new contract with Stop & Shop, “came to the bargaining table in good faith understanding that we would have to make changes to our health fund to be compliant under the legal requirements of [the Affordable Care Act].”

And, as he points out, there’s no reason for companies to take the law’s passage as an opportunity to cut workers’ benefits. “Stop & Shop seems to think [Obamacare] is an opportunity to achieve three goals: increase their profits, pick their employees’ pockets and undermine the union contract. That type of irresponsible bargaining will only lead to three conclusions: a work stoppage, unnecessary inconvenience for their customers and devastating economic damage to hundreds of New York communities.” In general, he continued, Obamacare “was not passed with the intent of eliminating an employer’s responsibility to provide affordable and comprehensive healthcare to its employees.”

This article was originally printed on Working In These Times on November 6, 2o13.  Reprinted with permission.

About the Author: Bruce Vail is a Baltimore-based freelance writer with decades of experience covering labor and business stories for newspapers, magazines and new media. He was a reporter for Bloomberg BNA’s Daily Labor Report, covering collective bargaining issues in a wide range of industries, and a maritime industry reporter and editor for the Journal of Commerce, serving both in the newspaper’s New York City headquarters and in the Washington, D.C. bureau.


Share this post

Follow this Blog

Subscribe via RSS Subscribe via RSS

Or, enter your address to follow via email:

Recent Posts

Forbes Best of the Web, Summer 2004
A Forbes "Best of the Web" Blog

Archives

  • Tracking image for JustAnswer widget
  • Find an Employment Lawyer

  • Support Workplace Fairness

 
 

Find an Employment Attorney

The Workplace Fairness Attorney Directory features lawyers from across the United States who primarily represent workers in employment cases. Please note that Workplace Fairness does not operate a lawyer referral service and does not provide legal advice, and that Workplace Fairness is not responsible for any advice that you receive from anyone, attorney or non-attorney, you may contact from this site.