Food 4 Less, union at odds over raises
Food 4 Less has proposed a three-year labor contract that would boost wages for its most tenured Southland workers by $1.55 an hour while maintaining the company’s current contribution levels for employee health care and retirement benefits.
The grocery chain, a division of The Kroger Co., is in negotiations with several Southern California United Food and Commercial Workers locals that represent more than 6,900 workers.
On March 3, the two parties exchanged proposals through a federal mediator. Following that, the union called for a strike authorization vote, saying the Food 4 Less proposal would leave some employees without a pay increase.
Members are scheduled to vote on the proposal next week. The union has advised them to reject the company’s offer and “take economic action” if necessary.
A three-phased pay hike
Food 4 Less’s proposed wage hike is valued at $21 million. It would come in three phases, beginning with a 50-cent boost 30 days after the contract is ratified. That would be followed by another 50-cent hike June 12, 2022, and a third 55-cent increase on June 11, 2023.
Food 4 Less didn’t specify what constitutes a “most tenured” employee, but its contract proposal lowers the amount of time required for a worker to earn top pay in the company’s two primary classifications.
Health care and retirement
Maintaining current contribution levels for employee health care and retirement coverage is valued at $149 million, the company said. All Food 4 Less workers pay $28 per month for individual health care coverage and $60 per month for family coverage.
The national monthly average for individual care is $103, and $501 for family coverage, according to the Kaiser Family Foundation Employer Health Benefits Summary of Findings, 2019.
“Our proposal is a strong and fair compensation package that recognizes the hard work of our associates,” Food 4 Less President Bryan Kaltenbach said in a statement. “We encourage the UFCW to continue to join us at the bargaining table and commit to reaching an agreement that allows us to continue to serve our customers throughout this process.”
Proposal falls short
Andrea Zinder, president of UFCW Local 324, said the contract proposal falls short as some workers wouldn’t receive a pay increase.
“Food 4 Less has not offered an improved and adequate proposal that includes all of their employees,” Zinder said in a statement. “During this pandemic, our members have endured risks that changed their everyday work and their lives. Our Food 4 Less members saw higher numbers in COVID-19 cases than any other chain we represent.”
Food 4 Less, she said, “must step up and do what’s right for the workers who keep their stores running and have led them to have record profits over the last year.”
Food 4 Less said the situation is disappointing. “The union uses a strike threat as a tactic because they believe it puts pressure on the company,” the grocer said.
The Los Angeles City Council and county of Los Angeles recently finalized emergency ordinances that require large grocery and pharmacy retailers to pay employees an additional $5 per hour during the COVID-19 pandemic.
The Long Beach City Council enacted a similar mandate that requires grocery stores with at least 300 employees nationwide and more than 15 employees in the city to pay workers an extra $4 per hour in hazard pay.
Kroger announced last month that it will shutter a struggling Food 4 Less and a Ralphs in Long Beach as a result.
“This misguided action by the Long Beach City Council oversteps the traditional bargaining process and applies to some, but not all, grocery workers in the city,” Kroger said in a statement.