UFCW Local 1189/ARGA Tentative Agreement Terms (Grocery Unit) Full Committee Recommendation

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1 Draft 5/13/16 General Terms UFCW Local 1189/ARGA Tentative Agreement Terms (Grocery Unit) Ratification Date 5/26/16 Full Committee Recommendation 1. Consolidate, revise, and clarify language where possible to simplify contract without changing meaning of the language (for example, obsolete grandfather dates, language relating to part-time employee years of service schedule for holiday pay, duplicative medical leave/fmla language, etc.). For ease of comprehension, all Full-time and Part-time language in the contract will be individually consolidated into their respective categories for each article. This settlement term is administrative only and makes no substantive change to the intent of language in each article. 2. Incorporate Letters of Understanding as appropriate. 3. Keep current Union Security for Minnesota. Add the following as an amendment to the Letter of Agreement dated October 5, 2015 for Wisconsin: If the [Right to Work] law is invalidated by the Wisconsin Supreme Court and is found to be unconstitutional, the parties will revert to the existing language in the Union Security Article and the LOA between the parties would be null and void. 4. Dues Checkoff (paragraphs 3.2/3.3) a. automatically disengage dues checkoff at contract termination b. automatically disengage dues check off for remainder of contract term if there is a labor disruption 5. Modify Vacations (Article 8) to allow the Employer to block out up to three (3) weeks during the year. 6. Modify Vacations paragraph 8.10 relating to absence for worker's compensation as follows: time absent from work counted as time worked for a period of up to two (2) months eight weeks. ( 2 months is ambiguous) 7. Replace existing language in paragraph 5.19 with: The Store may use a non-meat department employee to stock fresh meat products and ad items from the meat cooler as necessary if a meat department employee is not available and no meat department employee has been reduced in hours. Health Coverage (Article 15) 8. Increase monthly contribution rates for family coverage as follows*: Current Rate 7/1/2016 1/1/2017 1/1/2018 $1,410 ($8.13/hr) $1,425 ($8.22/hr) $1,465 ($8.45/hr) $1,525 ($8.80/hr) * For information purposes only: hourly cost based on an average of 40 hours/week

2 9. Increase monthly contribution rates (tied to an employee premium share for Grandfathered Part-Time Employees and ThirtyPlus Employees hired before 10/1/14 who currently have health coverage with no premium share) for single coverage as follows*: Current Rate 7/1/2016 1/1/2017 1/1/2018 $525 ($4.04/hr) $575 ($4.42/hr) $600 ($4.62/hr) *For informational purposes only: hourly cost based on an average of 30 hours/week $625 ($4.81/hr) 10. New Premium Share coupled with a $1/hour wage increase for Grandfathered Part-Time Employees and ThirtyPlus Employees hired before October 1, 2014 who currently have health coverage with no premium share. Premium Share (based on 52 weeks) is: 5/1/2016 7/1/2016 1/1/2017 1/1/2018 $22.50/week $22.50/week $23.50/week $24.50/week Premium Share applied to contribution rates described above. Health coverage subject to a premium share is optional and employee must elect to accept or waive coverage. The $1/hour wage increase stays in place regardless of whether the employee continues health care coverage or waives coverage. 11. Revise contribution requirements for full-time coverage from 2 months to 1 month: Full-time Employees hired from outside the Company shall be eligible for health plan benefits commencing with the first day of the month following the date on which the Employer has made two (2) one (1) monthly contributions on behalf of the Employee. The initial two (2) one (1) monthly contributions on behalf of Full-time Employees hired from outside the Company shall be at the Single contribution rate. In the event the Full-time Employee elects Family coverage commencing the following month, the Employer shall pay a lump sum make-up contribution to the Fund in an amount equal to the difference between the Single contribution rate and the Family contribution rate for the initial two (2) one (1) months. No other changes to eligibility or premium share percentage for FortyPlus Employees (employees averaging 40 hours per week or more generally department heads and traditional full-time employees) Pension 12. No changes Term of Agreement 13. Contract expires April 27, 2019 Wages (simply wage structure) 14. Wage adjustments and new wage scale see attached revised wage schedules 15. Unless otherwise specifically noted, individual wage adjustments for employees within the wage progressions shall be to the wage rate closest to the employee s current wage rate when implementing the revised wage schedules. In no event, however, will an employee s hourly wage be reduced as a result of implementing the wage adjustments and new wage scales. 16. As in the past, top and over scale wage increases are not cumulative. 2

3 17. Strays Any top scale and over employees unaccounted for by the following wage adjustments will receive the same top scale and over wage increases based on employee status (e.g. part-time, fulltime). 18. Employee moves the next higher wage rate on the completion of each Step progression. 19. Wage adjustments will be retroactive to May 1, 2016 provided membership ratifies the recommended Settlement Proposal on or before June 3, If no ratification on or before June 3, 2016, the employer s retroactive pay offer is automatically withdrawn. 3

4 APPENDIX A Food Handling Department Managers Including Bakery / Deli Managers 5/1/2016 4/30/2017 4/29/2018 Start $15.82 $15.82 $15.82 Step 1 (12 months) $17.60 $17.60 $17.60 Step 2 (12 months) $18.13 $18.13 $18.13 Step 3 (12 months) $18.67 $18.67 $18.67 Step 4 (12 months) $19.62 $19.62 $19.62 Step 5 (12 months) $20.20 $20.20 $20.20 Step 6 (12 months) $20.60 $20.60 $20.60 Step 7 (12 months) $20.90 $20.90 $20.90 Step 8 (12 months) $21.20 $21.20 $21.20 Step 9 (12 months) $21.50 $21.50 $21.50 Step 10 (12 months) $21.80 $21.80 $21.80 Step 11 (12 months) $22.10 $22.10 $22.10 Top and over scale Newly appointed Department Manager enters wage progression on next higher wage rate above his/her current wage rate. Assistant Store Managers receive additional 50 /hour over applicable rate. 4

5 Full Time Food Handling Employees: 5/1/2016 4/30/2017 4/29/2018 Start $13.15 $13.15 $13.15 Step 1 (12 months) $13.58 $13.58 $13.58 Step 2 (12 months) $14.14 $14.14 $14.14 Step 3 (12 months) $15.00 $15.00 $15.00 Step 4 (12 months) $16.07 $16.07 $16.07 Step 5 (12 months) $16.37 $16.37 $16.37 Step 6 (12 months) $16.67 $16.67 $16.67 Step 7 (12 months) $16.92 $16.92 $16.92 Step 8 (12 months) Step 9 (12 months) Step 10 (12 months) $17.22 $17.22 $17.22 $17.52 $17.52 $17.52 $17.82 $17.82 $17.82 Top and over scale:

6 Full Time Bakery Deli, includes FT Decorators 5/1/2016 4/30/2017 4/29/2018 Start $12.80 $12.80 $12.80 Step 1 (12 months) $13.20 $13.20 $13.20 Step 2 (12 months) $13.48 $13.48 $13.48 Step 3 (12 months) $14.00 $14.00 $14.00 Step 4 (12 months) $14.50 $14.50 $14.50 Step 5 (12 months) $14.75 $14.75 $14.75 Step 6 (12 months) $15.05 $15.05 $15.05 Step 7 (12 months) $15.35 $15.35 $15.35 Step 8 (12 months) $15.65 $15.65 $15.65 Step 9 (12 months) $15.95 $15.95 $15.95 Step 10 (12 months) $16.25 $16.25 $16.30 Top and over scale: Part-time Decorators move to New Part-time scale (Page 7). Part-time Decorator currently at $11.60/hr will be red-circled and remain on the deleted scale for one wage progression and thereafter move to New Part-time Scale on page 8 as an over-rate employee. 6

7 New Part Time and New ThirtyPlus Food Handling Employees (hired after 9/30/14)* 7/26/2015 5/1/2016 7/31/16 4/30/2017 4/29/2018 Start $8.20 $9.00 $9.70 $9.70 $9.70 Step Hours $8.20 $9.00 $10.00 $10.00 $10.00 Step Hours $8.50 $9.20 $10.30 $10.30 $10.30 Step Hours $8.60 $9.20 $10.55 $10.55 $10.55 Step Hours $8.80 $9.35 $10.80 $10.80 $10.80 Step Hours $9.44 $9.50 $11.05 $11.05 $11.05 Step Hours $9.75 $9.75 $11.30 $11.30 $11.30 Step Hours $10.05 $10.05 $11.50 $11.50 $11.50 Step Hours $10.35 $10.35 $11.70 $11.70 $11.70 Step 9** Hours $11.90 $11.90 $11.90 Step Hours $12.10 $12.10 $12.10 Top and over scale: * On 7/31/16 employee will move to the next higher wage rate and progress forward through the steps (example: Step 4 on 5/1/16 wage rate of $9.35 moves to $9.70 on 7/31/16). ** Top and over scale employees will move to the next higher wage rate on the 7/31/16 scale effective May 1, 2016 (provided timely ratification) and progress forward through the steps (example: Step 10 on 5/1/16 wage rate of $10.35 moves to $10.55 effective May 1, 2016). 7

8 New Scale: Grandfathered* and ThirtyPlus Food Handling Employee hired before 10/1/14 and who have health coverage with no premium share as of May 1, 2016 Current 5/1/2016 4/30/2017 4/29/2018 Start $10.00 $10.00 $10.00 Step Hours $10.00 $10.00 $10.00 Step Hours $10.20 $10.20 $10.20 Step Hours $10.20 $10.20 $10.20 Step Hours $9.35 $10.35 $10.35 $10.35 Step Hours $9.50 $10.50 $10.50 $10.50 Step Hours $9.75 $10.75 $10.75 $10.75 Step Hours $10.05 $11.05 $11.05 $11.05 Step Hours $10.35 $11.35 $11.35 $11.35 Step Hours $11.55 $11.55 $11.55 Step Hours $11.75 $11.75 $11.75 Top and over scale: +$ * Grandfathered employees include all part-time employees regardless of department (e.g. grocery, bakery, deli) hired before 9/30/14. 8

9 Transitional Part-time Food Handling Employees Hired on or after 5/1/05 (employees who made the one-time election to continue or drop participation in the Health and Welfare Fund) 7/26/2015 5/1/2016 4/30/2017 4/29/ Hours $10.80 $10.80 $10.80 $ Hours $11.00 $11.00 $11.00 $ Hours $11.10 $11.10 $11.10 $ Hours $11.15 $11.15 $11.15 $ Hours $11.30 $11.30 $11.30 $ Hours $11.55 $11.55 $11.55 $ Hours $11.75 $11.75 $ Hours $11.95 $11.95 $ Hours $12.15 $12.15 $12.15 Top and over scale: Non Food Handling Employees 7/26/2015 5/1/2016 7/31/2016 4/30/2017 4/29/2018 Top and over scale: $9.00 $9.10 $9.70 $9.70 $ Start rate will always be not less than 10 above minimum wage. 9

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