Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘grocery’

Stop & Shop workers win pay, benefits concessions after 11-day strike

Wednesday, April 24th, 2019

New England grocery store workers have won significant concessions from the Dutch firm that rules their day-to-day lives after an 11-day strike, the United Food and Commercial Workers (UFCW) announced Monday.

More than 30,000 Stop & Shop employees walked off the job on April 11 after negotiators from Netherlands-based multinational food retailer Ahold Delhaize spent weeks insisting the grocer’s frontline workforce would have to absorb higher health care costs and major changes to retirement benefits.

Such collective action has become rare in the private sector, where union membership levels are at historic lows and complex ownership arrangements involving multinational holding companies have attenuated the connection between the people who do a business’ actual work and the well-to-do executives calling the shots.

But the nearly two-week work stoppage drew high-profile support from both local and national leaders. Multiple 2020 presidential primary contenders visited striking workers in person, including Sens. Elizabeth Warren (D-MA) and Amy Klobuchar (D-MN), South Bend Mayor Pete Buttigieg (D), and former Vice President Joe Biden (D). Boston Mayor Marty Walsh (D) and Connecticut Gov. Ned Lamont (D) also showed their faces and shared supportive remarks at rallies with the strikers. Sens. Kamala Harris (D-CA) and Cory Booker (D-NJ) tweeted their support for the cause.

Attention from such dignitaries doubtless helped tighten the screws on the Dutch negotiating team. But local reports are crediting a humbler source of moral leadership for the ultimate resolution of the conflict, which was announced late on Easter Sunday by both the union and the grocer.

A slew of rabbis and Christian clergy around southern New England urged their congregations to honor the strikers by taking their Passover and Eastern business elsewhere.

“We encourage our members to celebrate the upcoming holiday in a manner that honors both the Jewish value of freedom and workers’ dignity,” Rabbis Allison Berry and Laura Abrasley of Temple Shalom in Newton, Massachusetts, wrote to their congregants in an email.

“I just personally wasn’t comfortable crossing the picket line,” Rev. Laura Goodwin of Holy Spirit Episcopal Church in Sutton, Massachusetts, told local reporters. “Flowers are nice, but they’re not as important as people’s livelihood.”

Civic solidarity of that kind can be essential to making a strike work.

When the private sector was more broadly organized decades ago, workers who voted to strike at any given firm knew they would be tapping into a resource much more powerful than any one store. Unionized suppliers and distribution partners would refuse to cross a picket line, amplifying the strike’s immediate impacts almost automatically. With union membership levels down by two thirds since the 1970s, however, modern strikes are a lonelier and more daunting prospect. Without assurances of meaningful support from colleagues, the success or failure of any given worker action rests more with customers themselves.

Advertisement

Losing the holiday weekend likely put a substantial blemish on Stop & Shop’s 2019 books. Sales directly tied to Easter and Passover typically make up 3% of the firm’s yearly revenue, an industry analyst told Boston’s local NBC station, and the strike was probably costing the firm about $2 million a day even before factoring in the holiday.

That squeeze has now achieved what months of earnest discussion at the bargaining table could not, union officials announced Sunday night. The Dutch firm had reportedly sought sweeping cuts to compensation, including a higher employee charge for health care that would have dragged take-home pay lower. The firm also wanted to end pension offerings for new hires.

Neither side offered much detail about the deal struck Sunday. But both the UFCW and the corporate communications team for Stop & Shop described the new contract agreement as preserving the current terms on retirement benefits and health care cost-sharing. Workers across the 31,000-member union in Rhode Island, Massachusetts, and Connecticut stores will see wage increases as well, according to the statements.

Though private-sector workers have been less prone to strike lately than teachers’ unions and other public-sector labor groups, the apparent success of the protracted action in New England offers a reminder that collective-action tactics remain effective despite their declining use.

Fast food workers spent years agitating for union rights and a $15 hourly pay floor, racking up a series of local minimum wage victories while reshaping the lobbying alliances that have long protected the industry’s exploitative and publicly subsidized business model. Toys-R-US employees were able to extract a large payout from the private equity vultures that had seized the dying brand and stiffed loyal longtime staff thanks to similarly adamant protest work.

A protracted strike by Marriott hotel workers last fall also ultimately produced a negotiated agreement.

But it also afforded Americans a glimpse at how tenuous labor solidarity has become most of a century after unions forced robber baron capitalists to accept ideas like “dignity” and “safety” and “having a weekend.” Even athletes, perhaps the most culturally prominent union members in the modern U.S. economy, failed to respect the Marriott picket line during last fall’s Major League Baseball playoffs.

About the Author: Alan Pyke covers poverty and the social safety net for ThinkProgress.

This article was originally published at ThinkProgress on April 22, 2019. Reprinted with permission. 

The Stop & Shop Strike Is Showing There’s Still Power in a Union

Tuesday, April 16th, 2019

Roughly 31,000 employees of the northeastern grocery chain Stop & Shop have been on strike for nearly a week across more than 240 stores in Massachusetts, Connecticut and Rhode Island. The workers, represented by the United Food & Commercial Workers (UFCW), walked out on April 11 after voting to authorize the strike in March. During what is reportedly the largest private sector strike in three years, talks continued Tuesday, with neither side able to make an agreement.

Stop & Shop is owned by Ahold Delhaize, a retail company based in The Netherlands. Ahold Delhaize is a $44 billion company, and it’s saved millions thank to the corporate tax breaks implemented by the Trump administration. Workers say that, despite these numbers, Stop & Shop is attempting to cut employee pensions, raise the cost of healthcare and roll back overtime pay. They’re also concerned about the company’s rising use of automation, which many believe will lead to inevitable layoffs.

The workers have received vast support throughout the community, while the stores have been forced to scrape by with temporary staff in many areas. An employee named Temika who works at a store in Providence uploaded a Facebook video detailing what the current state of the store. “I had a family member go in today and just take a look around,” she said, continuing, “It looked terrible. The prepared foods, the deli, the seafood department, the bakery—everything was shut down. The tables looked exactly the way they looked the day [everybody went on strike], which means they haven’t been rotating anything.”

The current state of Stop & Shop should be a legitimate concern for the company. The Southern California grocery strike of 2003 to 2004 led to the establishment of new grocery chains and customers shifting their allegiances after they began shopping at different stores. The same trend could very well impact New England. Customer Gail Zulla told a local news station that she used to shop at a Providence location of Stop & Shop but had been picking up her groceries at the local rival Shaw’s. “It’s the busiest I’ve ever seen a Shaw’s in my life,” she said, “It’s like it’s a snow storm. There’s no bread, there’s nothing.” She said she’ll take her business elsewhere while the strike is underway, adding, “maybe I’ll stay at Shaw’s.”

When In These Times spoke with UFCW Local 1445 political director Jim Carvalho last month, he said that the union was hoping other workers would be inspired by the actions of the Stop & Shop employees. This appears to have born out. The striking workers have received solidarity from faith groups, other unions and local lawmakers. Rabbi Jon-Jay Tilsen of Beth El-Keser Israel in New Haven told The New Haven Register, “Any food purchased by crossing a picket line or from scab workers is not kosher for Passover.” The Teamsters Council 10 has stopped picking up trash for the company, and Massachusetts Democratic Senator (and presidential candidate) Elizabeth Warren showed up at a picket line with coffee and donuts for the employees. “These giant companies think they can knock unions back,” Warren told the Somerville crowd on April 12. “Unions are here to stay because when you’re fighting for your family, you stay in the fight until you win.”

After a video of Boston Bruins legend Ray Bourque leaving a Stop & Shop was posted on social media, the former hockey player felt compelled to release a statement via Twitter. “Being a union hockey player for 22 years I respect Unions and the work that they do.” Bourque tweeted. “I have a medical condition that I was preparing for this morning and mistakenly crossed the picket line at Stop & Shop. On my way out I apologized immediately. I support the employees of Stop & Shop and once my medical condition is resolved I plan on returning to stand in solidarity and will walk the picket line alongside the members of the union.”

While unionization is declining throughout the country, Massachusetts—where most Stop & Shop stores are located—has actually experienced a sizable uptick. According to the U.S. Bureau of Labor Statistics, the amount of workers who consider themselves part of a union went up by 16% from 2017 to 2018.

However, Stop & Shop remains one of the only remaining unionized stores in the industry, as big-box retailers like Walmart have put others out of business in recent years. As grocery industry analyst Burt Flickinger recently told The Boston Globe,“Stop & Shop is the last, best, and final hope for the great Roman empires of unionized food retail chains.”

This article was originally published at In These Times on April 11, 2019. Reprinted with permission. 

About the Author: Michael Arria covers labor and social movements.

Your Rights Job Survival The Issues Features Resources About This Blog