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Grocery store union targets 2 small Chicago-area chains

By Delroy Alexander Chicago Tribune staff reporter Published March 16, 2004

Even the friendly neighborhood grocery store can't avoid the burgeoning labor battle launched by Chicago-area supermarket workers determined to maintain health and pension benefits. Labor unrest previously contained to the major chains, Dominick's and Jewel Foods, spread Monday to two popular, family-owned store operators. Asking shoppers to boycott stores while workers try to negotiate a new labor deal, the United Food and Commercial Workers union began a flier campaign at six Treasure Island locations and the two Potash Bros. Supermart stores on the North Side of Chicago, where labor contracts ended March 7.

The chains are in separate talks, but their key concerns are similar. At the center of both disputes are attempts by management to force workers to pick up a greater share of fast-rising health insurance costs and welfare benefits, said union leaders.

Those same issues were at the root of a 138-day strike in Southern California that inconvenienced millions of customers and cost three major grocery chains hundreds of millions of dollars in lost sales before its resolution Feb. 29. That's when workers ratified new contracts giving them no raises and requiring them to contribute money toward their health benefits for the first time. Workers did receive two one-time bonuses in the deal. Locally, grocers said they didn't expect the dispute to escalate at this point. "We were surprised by the move," said Art Potash. "We are still in negotiations." Almost a quarter of the 160 workers at Potash Bros., founded in 1950, have been working at the Gold Coast and Sandburg Village stores for more than 10 years, said the owner. A pitch to customers In a letter to customers, Treasure Island said many of its 400-plus workers were long serving and that it would "maintain and increase" employee wages. "The union has not even allowed the employees a vote on these matters," said the letter available in its stores. "Even with the impact of a slow economy, higher operating costs including health-care costs, and increased competition, Treasure Island has never laid off an employee."

The action at two small local operators that have traditionally had good relations with their workers comes just weeks after a bitter pay and benefits battle ended in Southern California, where workers had gone on a 138-day strike to help maintain health and welfare benefits. It also comes just days before grocery workers union Locals 881 and 1546 expect contract talks at Dominick's to lead to a new proposal from management to end a long-running stalemate.

Union officials privately are suggesting that negotiations at Dominick's could lead to a more substantial dispute unless concessions are made by management at the company's parent, Safeway Inc. Workers at Dominick's, which is in the process of closing 12 local stores, have been without a new labor deal since a bitter dispute over similar benefit issues at the end of 2002. Union leaders said they expected to see details of a new deal soon. Just last week, newly named national union President Joe Hansen said he expected Chicago's talks with Dominick's to be a proving ground of how future labor relations would evolve.

Proposals defended Executives at Treasure Island and Potash appeared taken aback by the public hostilities, but both defended current proposals in light of increased competition in the sector. Potash said he was asking staff to contribute between $5 and $10 per week toward the cost of health insurance to offset employer contributions that had more than doubled in the last couple of years. Treasure Island said that it had proposed a new health-care plan and optional HMO because "funds the union demands Treasure Island to pay in to have come close to running out of money several times in the past year."

Local 881 spokeswoman Elizabeth Drea said the companies were trying to "gut the workers' health insurance coverage and put their future pension benefits at risk." She said that under the proposed deals, employees at those companies would have to work between 30 and 32 hours per week to maintain eligibility for health insurance, which would see more than 50 percent of workers lose their entitlement altogether at Potash. At Treasure Island, workers who qualify for insurance would have to contribute up to $60 per week, she said.

Potash and Treasure Island also are proposing that union employees, who currently participate in the UFCW guaranteed pension fund, switch to individual 401(k) plans. The companies are "gambling" with their workers' retirement benefits, said Local 881 President Ron Powell.

Union seeking boycott vs. 2 grocery chains
March 16, 2004 BY FRANCINE KNOWLES Sun Times Business Reporter

The union representing roughly 550 workers at Treasure Island Foods and Potash Bros. grocery stores in the Chicago area is asking consumers to boycott the stores because of proposed changes to employee health insurance and pension benefits.

Under the companies' health insurance proposals, some employees currently eligible for health insurance would no longer be, said a spokeswoman for the United Food and Commercial Workers Local 881, whose contracts with the companies expired earlier this month. The proposals would either raise employees' health care costs or reduce benefits, she added. The companies also propose to replace the current pension plan, which provides guaranteed benefits, with employee-directed 401(k) plans, she said.

Art Potash, owner of Potash Bros. Market, said the company must reduce health care costs. He said employees presently pay nothing toward their insurance premiums, and his proposal would require that they contribute $5 to $10 a week. Treasure Island criticized the union for calling for a boycott before any vote on its proposal. The union represents nearly 400 workers at six Treasure Island Stores and roughly 150 workers at two Potash Bros. stores.

Workers at Potash, Treasure Island, stepping up pressure

March 18, 2004 BY FRANCINE KNOWLES Sun Times Business Reporter

The parties involved in a labor contract dispute affecting about 550 grocery workers at Potash Bros. and Treasure Island Foods are stepping up the pressure. The union, which earlier this week called for a boycott of the grocers in part because of proposals from the companies that the union says would gut workers' health insurance plans, said Wednesday it has filed an unfair labor practice charge against Treasure Island.

The United Food and Commercial Workers Local 881 accused the company of threatening to unilaterally change the terms and conditions of the employees' health care benefits. The union also charged that Treasure Island, which operates six stores in Chicago and employs nearly 400 people, "unlawfully engaged in direct dealing with employees by enrolling them in health plans that were not agreed to by the union."

In a letter sent to Treasure Island Chief Executive Officer and President Christ Kamberos, the union said it had learned the company has threatened to cease making contributions to the union's and employers' benefits fund effective March 31. Kamberos could not be reached for comment.

In calling for the boycott Monday of Treasure Island and Potash Bros., the union also blasted the companies' proposals to replace current guaranteed pension plans with employee-directed 401(k) plans. Treasure Island earlier this week criticized the union for calling for the boycott before any vote on its proposal. Art Potash, owner of Potash Bros., which operates two stores in Chicago that employ about 150 workers, said the company must reduce health care costs. He said employees presently pay nothing toward their insurance premiums and his proposal would require that they contribute $5 to $10 a week. But at a press conference Wednesday, Local 881 President Ronald E. Powell said the companies proposals would require some employees to pay up to $60 per week for coverage and eliminate coverage for some workers.

The press conference drew support from Illinois AFL-CIO President Margaret Blackshere and Chicago Federation of Labor President Dennis Gannon. Potash said he met with the union Tuesday and he's hopeful a settlement will be reached. The union's contracts with the companies expired earlier this month. Union spokeswoman Elizabeth Drea said no strike authorization vote has taken place or is scheduled and talks are continuing with the companies.