Kroger Houston, UFCW 455 spar over pay, health benefits


Kroger has also requested the Local Union to vote for the transition of Pension Plans.


According to Kroger Company, they have claimed that $56 million has been invested for a Pay increase with more affordable health care benefits in the Houston division. The company resumes its contract with UFCW (United Foods and Commercial Workers Local 455).

After a month of negotiation with the UFCW Kroger Houston has stated that UFCW 455 still didn’t vote for Kroger members on the retailer’s new proposal and not acknowledged the company’s struggle to shift the pension benefits to the new VAPP (Variable Annuity Pension Plan).

In parallel UFCW 455 has asked Kroger to introduce “Hazard Pay” which would be $2 per hour for front Line Representatives that ended in the middle of May. Houston Based Union has also proposed Kroger members for the provision of higher costs for health care and its benefits in light of the retailer’s proposal to the transition associates from the South-Central Health and Welfare fund. The Current South-Central Health and Welfare fund is managed by the trustees’ Board which is administered by the Company.

Kroger Houston has claimed that their latest final offer was shared on 19th August, whereas, Kroger Company has revealed the Pension Transition plan in July.

The President of Kroger Houston Division Joe Kelley stated; “Kroger’s commitment to increase wages and ensure our associates have access to world-class affordable, secure, and reliable health care benefits is a core priority for the company. Our plan removes any uncertainty frontline associates experience with their current health and welfare trust fund plan. We believe this is the right path forward for our associates.”

According to the latest offer, the frontline associates would be given a pay raise within the tenure of the upcoming six months, Kroger Houston stated, noticing that the expansion follows wage climbs prior to this year and $8 million in wage increments in October 2019. The division said it additionally will spend more than $75 million yearly on medical care for hourly partners, who will pay $32 for individual or $172 for the family month to month inclusion in an organization oversaw plan, versus a public month to month normal expense of $103 for individual and $501 for family inclusion.

Kroger Houston stated that; “Kroger believes the South-Central Fund is unstable because it significantly reduced benefits in 2019 for Kroger associates. This move to a company-administered plan is a critical step in ensuring stable, affordable, and secure benefits for Kroger Houston associates now and in the future.”

The UFCW 455 who represents the Kroger Store and the meat clerks have mentioned that from the Kroger Health plan Employee cost will be increased which includes their monthly contribution, deductibles, and healthcare-related visits which include doctor visits, Emergency prescribed drugs. More significant, the UFCW 455 stated, oversight of medical advantages would pass from the medical care trust reserve board to Kroger.

UFCW has stated that; “Kroger’s ‘K-plan’ is a power grab to gain control of your South-Central Trust Fund, which is currently run by a board of trustees that includes your union representatives. Under the K-plan, your health care will no longer be decided by a labor-management partnership, known as the ‘trust,’ but will be completely controlled by Kroger, Under Kroger’s K-plan they will decide how much to contribute to the cost of your health care. You could be paying more, while they could contribute less.”

The South-Central funds that are allocated are not limited to workers in Houston only, the fund covers Louisiana, Arkansas, and Texas as well.

UFCW also stated that; “Almost all of our other UFCW local unions that represent Kroger workers throughout the country operate with the same type of health care fund that you have now,” UFCW 455 represents more than 19000 members who are in Louisiana and Texas the covers warehousing, packing, processing retail, grocers and other industries.

By the end of July, Kroger alongside Albertsons Co. what’s more, Ahold Delhaize USA’s Stop and Shop reported conditional concurrences with UFCW local people to pull out from the UFCW International Union-Industry Pension Fund and move to a VAPP (Variable Annuity Pension Plan). UFCW’s public benefits store leading body of trustees of the UFCW’s public annuity reserve has affirmed the arrangements, while association sanction is forthcoming. The retailers said the move to a VAPP will support the security of annuity benefits for UFCW individuals and diminish monetary danger for the organizations concerning annuity costs.

Kroger mentioned that the agreement with UFCW includes about 40 distinguished contracts for 33000 Kroger Associates across 14 divisions to join the new VAPP/

“Kroger has offered to invest nearly $1 billion to improve the stability and security of past and future pension benefits for 33,000 associates across 14 divisions, including Houston meat clerks. Establishing a new variable annuity pension plan (VAPP) is the most effective way to do this,” Kroger Houston stated. “UFCW Local 455’s failure to allow a vote on the pension proposal holds both parties back from enhancing the security of pension benefits of thousands of Kroger Family of Companies associates who are also UFCW members across the country,” the division added.

In September, the Kroger Dallas division and UFCW Local 1000 arrived at an aggregate haggling arrangement that canvassed more than 11,000 partners in the division, which is situated in Coppell, Texas. The new agreement incorporates expanded wages for all partners; endorsement rewards and retroactive compensation for office heads, store drives, high-performing partners, and other store positions; and improved medical advantages, including lower partner commitments and deductibles.

On Friday, “West Virginia Metro News” reported that there are a few workers in West Virginia who have opposed the Company’s new offer and voted to strike. Individuals from UFCW Local 400 cast a ballot 1,551-130 to dismiss Kroger’s offer and 1,490-199 for strike approval. A strike has not yet been booked.

Allison McGee, Manager of Mid-Atlantic Corporate Affairs said; “Associates are continuing to report to work as scheduled, A strike authorization doesn’t mean a strike. At this point, the union has not called for a work stoppage. Our focus remains on our associates and recognizing and rewarding them for their hard work,”

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