Fully Recommended Settlement UFCW Local 555 Unity Bargaining - Grocery, Meat & CCK Agreements February 2013 1
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UFCW Local 555 Highlights of Contract Offer Unity Bargaining Committee Areas CCK, Food & Meat Agreements February 2013 Health & Welfare: Increases Employer contributions by 14.87% funding the plan through 2015 per consultants. (Defeated Employer proposal to put reserve money back in the employer s pocket) Plan Merger One medical plan and one benefit structure for all UFCW Local 555 grocery, meat & cck members regardless of location. Tunnels at 24 months for Level 1 and 24 months for Level 2. (Defeated Employer proposal of 36 months for L1 and 42 months for L2) Coinsurance at 85% for Level 3; 80% for Levels 1 and 2. (Defeated Employer proposal of 80% for L3, 70% for L2 and 60% for L1) Deductibles at $300/$600 for Level 3; $400/$800 for Levels 1 and 2. (Defeated Employer proposal of $400/$1,200 for L3, $500/$1,500 for L2 and $600/$1,800 for L1) Individual Out of Pocket Max at $3,000 for Level 3; $3,000 for Level 2; and $3,500 for Level 1. (Defeated Employer proposal of $4,000 for Level 3; $4,500 for Level 2; and $5,000 for Level 1) Family Out of Pocket Max stays at two times the individual Out of Pocket Max. (Defeated Employer proposal of three times the individual Out of Pocket Max) Co-premiums for Level 1 of $7 employee/$12 employee+child; Level 2 and 3 of $10 employee / $15 employee+child / $20 employee+spouse / $25 family. (Employer funding proposal would have raised these numbers to $28 employee / $33 employee+child / 38 employee+spouse / $43 family by the Union consultant s calculations) Dental Benefits start at Level 2 for all participants. Dental Benefit fee schedule increases in January 1, 2015 as funding allows. Maintained 80 hours per month qualification for benefits. (Defeated Employer proposal to increase qualification to 100 hours per month) Pension: All Retail Employers paying $0.23 helping protect fund planning for all participants. Early retirement protected under Clerk s Pension for all participants. Rule of 85 protected under Butcher s Pension for all participants. Language Issues: Dues check-off deducted weekly instead of monthly jurisdiction wide. Merger of Schedules B & C in the Meat Agreements. Medical extension of probationary period. Improved how holiday pay is calculated for some contracts. Wages: 25 Retroactive Lump Sum Payment for Journeypersons (minimum of 12 months). 10 Retroactive Lump Sum Payment for Apprentices (minimum of 12 months). 3
Terms: 25 Lump Sum Payment for Journeypersons over term of agreement. 25 Journeyperson raise over term of agreement. Adjustments to Apprentice scales with increases to steps of up to $0.50 per hour. Portland - July 2012 to July 2015 (3 Years) Bend - July 2012 to July 2015 (3 Years) Newberg - September 2012 to September 2015 (3 Years) Vancouver - December 2011 to December 2015 (4 Years) Klamath Falls (Meat) - December 2012 to December 2015 (3 Years) Burns (Meat) - December 2012 to December 2015 (3 Years) Longview/Cowlitz County - January 2013 to January 2016 (3 Years) Medford - January 2012 to January 2016 (4 Years) Roseburg - January 2012 to January 2016 (4 Years) Eugene - February 2011 to February 2016 (5 Years) Brookings - February 2012 to February 2016 (4 Years) Lakeview - February 2012 to February 2016 (4 Years) The Dalles/Hood River - June 2012 to June 2016 (4 Years) Newport/Lincoln City - August 2011 to August 2016 (5 Years) Salem/Albany - August 2011 to August 2016 (5 Years) McMinnville (Meat) - August 2011 to August 2016 (5 Years) Coos Bay - October 2011 to October 2016 (5 Years) Florence - October 2011 to October 2016 (5 Years) Astoria/Tillamook - November 2011 to November 2016 (5 Years) Defeated Employer Proposals: Elimination of prior experience credit. Mandatory work on Christmas Day. Elimination of restrictions on when and/or how often the employer can require you to attend a store meeting. Elimination of 5 Day Work Week Defeated Employer Proposals for New Hires: Extend time to qualify for vacation Eliminate Sunday premium Eliminate evening premium Eliminate night premium 4
UFCW Local 555 Albertsons, Fred Meyer, and Safeway All Open Grocery, CCK & Meat Agreements Fully Recommended Settlements February 1, 2013 The Union and the Union bargaining committee agree to fully recommend the following settlements for ratification. All changes are effective upon date of ratification, unless otherwise noted. All terms of the agreements (including Letters of Understanding) remain in full force and effect with following modifications outlined below. Contract Term The following terms shall apply for the contract areas specified: Portland 3 year term (7/12 7/15) Bend 3 year term (7/12 7/15) Newberg 3 year term (9/12 9/15) Vancouver 4 year term (12/11 12/15) Klamath Falls (Meat) 3 year term (12/12 12/15) Burns (Meat) 3 year term (12/12 12/15) Longview (Cowlitz) 3 year term (1/13 1/16) Medford 4 year term (1/12 1/16) Roseburg 4 year term (1/12 1/16) Eugene 5 year term (2/11 2/16) Brookings 4 year term (2/12 2/16) Lakeview 4 year term (2/12 2/16) The Dalles/Hood River 4 year term (6/12 6/16) Newport/Lincoln City 5 year term (8/11 8/16) Salem 5 year term (8/11 8/16) McMinnville (Meat) 5 year term (8/11 8/16) Coos Bay 5 year term (10/11 10/16) Florence 5 year term (10/11 10/16) Astoria/Tillamook 5 year term (11/11 11/16) Health & Welfare The following health and welfare terms apply: 1. This health and welfare agreement covers health and welfare terms for all contracts (listed above) from their respective dates of ratification through December 31, 2015. 2. The parties will support a merger of the PAC and JLMRT plans. 5
3. The new Merged Plan will have a common set of benefits; such benefits to be funded by the contribution rates below and are outlined on Attachment A. 4. The Employer contribution rates shall continue to be on the same basis as the current contribution rates (hourly for PAC contracts, three monthly rates for JLMRT contracts). While JLMRT employers will continue to pay on a monthly basis, the Trust fund will develop procedures for employers to report hours on all bargaining unit employees on the same basis that PAC employers report hours. This JLMRT hours data will be for informational purposes. 5. Employer contribution rates shall increase as follows: WAGES: a. For current PAC contracts, the Employers are contributing $4.37 per hour. That contribution rate shall increase as follows: 1. Effective with February 2013 hours (March 2013 payment), the Employer contribution shall increase by $0.20 per hour. 2. Effective with December 2013 hours (January 2014 payment), the Employer contribution shall increase by $0.20 per hour. 3. Effective with December 2014 hours (January 2015 payment), the Employer contribution shall increase by $0.25 per hour. b. For JLMRT contracts, the Employers currently pay the following monthly rates: Level 1: $179.65; Level 2: $655.91; Level 3: $713.21. The Employer JLMRT contribution rates shall increase on the same effective dates as the PAC increases set forth above by monthly amount(s) equivalent to the hourly increases proposed above for the PAC contracts (this monthly amount to be calculated by the fund consultants and agreed to by the parties). Upon Ratification: Retroactive Lump Sum Payment For all Journeyperson employees on the payroll on the ratification date of this agreement, there shall be a lump sum payment which shall be calculated by taking $0.25 per hour for all Journeyperson hours compensated from date of expiration through date of ratification, with a minimum of 12 months. (The $0.25 per hour figure is to be paid on all Journeyperson hours compensated regardless if the hour was a straight-time hour or overtime hour. The parties have factored in overtime requirements in the $0.25 figure.). For all Apprentice employees on the payroll on the ratification date of this agreement, there shall be a lump sum payment which shall be calculated by taking $0.10 per hour for all Apprentice hours compensated from date of expiration through date of ratification, with a minimum of 12 months. (The $0.10 per hour figure is to be paid on all Apprentice hours compensated regardless if the hour was a 6
straight-time hour or overtime hour. The parties have factored in overtime requirements in the $0.10 figure.). Lump sum bonuses to be paid within 30 days of the dates specified to current active employees on the payroll on the date the bonus is paid. 1 Year* After Ratification: For all Journeyperson employees on the payroll on the date of this payment, there shall be a lump sum payment which shall be calculated by taking $0.25 per hour for all Journeyperson hours compensated in the previous twelve (12) months. (The $0.25 per hour figure is to be paid on all Journeyperson hours compensated regardless if the hour was a straight-time hour or overtime hour. The parties have factored in overtime requirements in the $0.25 figure.). Lump sum bonuses to be paid within 30 days of the dates specified to current active employees on the payroll on the date the bonus is paid. 2 Years* After Ratification: Increase Journeyperson wage rates by 25 per hour. Later expiring contracts: For contracts that expire after February 2016, there shall be an additional lump sum payment paid 3 years* after ratification as follows: For all Journeyperson employees on the payroll on the date of this payment, there shall be a lump sum payment which shall be calculated by taking $0.20 per hour for all Journeyperson hours compensated in the previous months equal to the number of months after February that the contract expires. (The $0.20 per hour figure is to be paid on all Journeyperson hours compensated regardless if the hour was a straight-time hour or overtime hour. The parties have factored in overtime requirements in the $0.20 figure.). [Example: Salem expires in August 2016, so the Salem bonus would be for six months of hours]. Lump sum bonuses to be paid within 30 days of the dates specified to current active employees on the payroll on the date the bonus is paid. * Effective the first Sunday following the referenced dates. Wage table/progression rates see attached. Pension For all contracts, the Employers have agreed to adopt the Preferred Schedule under the pension trust s Rehabilitation Plan. The Preferred Schedule includes additional annual Employer supplemental contribution increases of $0.08, $0.08, and $0.07, for a total of $0.23 per hour in additional contributions to the pension plan. 7
Language Proposals Note: The Section numbers below refer to the Portland Grocery Agreement. The same modifications will apply to in all open contracts, grocery, CCK, and meat, where like terms exist (unless otherwise noted). ARTICLE 2 UNION SECURITY AND EMPLOYMENT - NON-DISCRIMINATION 2.5 New Employee Evaluation. There shall be a probationary period of sixty (60) days during which a new employee may be discharged without right of protest. This sixty (60) day period shall be extended by the amount of time the employee is absent from or unavailable for work due to medical reasons during the probationary period. The employer must notify both the employee and the union in writing, prior to the completion of the probationary period, of their intent to extend the probationary period. ARTICLE 4 - HOURS OF WORK - OVERTIME 4.3 Delete. ARTICLE 6 COMPENSATION PRACTICES 6.14 (New) Payroll Overpayments. When a payroll overpayment is discovered, the Employer is authorized to make appropriate payroll corrections, including recovering the amount of the overpayment in the form of a weekly payroll deduction. If the overpayment occurred within 90 days, the employer is authorized to make the corrective deductions. If the overpayment occurred more than 90 days prior, the employer shall work out the terms of the repayment schedule with the union. This provision does not apply to deductions for union dues or medical premiums. ARTICLE 7 HOLIDAYS 7.4 For Portland and other PAC contracts: Back to book with the employers giving notice that they intend to apply the express language as written (irrespective of present practice). 8
7.4 For JLMRT contracts: Change to: Calculation of Holiday Pay. Eligible employees shall be entitled to holiday pay in accordance with the average straight-time hours compensated per week in the four (4) weeks preceding the holiday in question, as follows: 16-19 hours - 4 hours pay 20-23 hours - 5 hours pay 24-27 hours - 6 hours pay 28-31 hours - 7 hours pay 32 or more hours - 8 hours pay 7.6 Work on Holidays - Rate of Pay. Current Eemployees eligible for holiday pay who work on a named holiday shall receive time and one-half (1½) of the employee s regular straight hourly rate of pay for all hours worked, plus any regular earned holiday pay. Employees hired after (date of ratification) who are eligible for holiday pay and who work on holidays shall receive their holiday pay, plus $1.00 per hour over their regular straight time rate for the hours worked. Holiday work shall be on a voluntary basis as near as practical, taking into consideration the proper manning and operation of the store. For scheduling during holiday weeks, see Paragraph 4.3 (Holiday Workweeks) above. Meat Appendices Clarify current practice by combining Schedule B and Schedule C into one classification. 9
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HEALTH & WELFARE: Increase the current hourly/monthly Employer contribution rates as follows: PAC 555 H&W hourly contribution increase: Effective on February 2013 hours: +$.20/hour; Effective on December 2013 hours: +$.20/hour; Effective on December 2014 hours: +$.25/hour. JLMRT H&W Monthly contribution increase: Effective on February 2013 hours: +$33/month; Effective on December 2013 hours: +$33/month; Effective on December 2014 hours: +$41/month. The employer contribution rates shall continue to be on the same basis as the current contribution rates (hourly for PAC contracts, three monthly rates for JLMRT contracts). While JLMRT employers will continue to pay monthly, they will be required to report hours on all bargaining unit employees on the same basis that PAC employees report hours. This JLMRT hours data will be for informational purposes. Plan Design: It is understood and agreed that the Union Trustees shall bear the primary responsibility for designing the benefit structure which will then be presented to the full Board of Trustees for consideration. Provided the newly proposed benefit structure does not violate any fiduciary responsibility or duty of the Trustees and complies with the funding directives contained in this Agreement, it shall be approved by the Board of Trustees. The Trustees of the Plan are directed to make the following Plan changes that will apply to both PAC and JLMRT members in the newly Merged Plan : Level 1, effective for 24 months after the initial contribution for 80 or more hours is made to the Trust on your behalf: o Annual calendar year deductibles of $400/$800 o Coinsurance to 80% in-network/70% out-of-network o Out of pocket calendar year maximum of $3,500/$7,000 (unlimited non-network) o Weekly premiums of $7 Employee Only/$12 Employee and Children Level 2, effective for 24 months after completion of Level 1: o Annual calendar year deductibles of $400/$800 11
o Coinsurance to 80% in-network/70% out-of-network o Out of pocket calendar year maximum of $3,000/$6,000 (unlimited non-network) o Weekly premiums of $10 Employee Only/$15 Employee and Children/$20 Employee and Spouse/$25 Family o Dental: $1,200, $825/5YR Ortho Level 3, effective after completion of Level 2: o Annual calendar year deductibles of $300/$600 o Coinsurance to 85% in-network/75% out-of-network o Out of pocket calendar year maximum of $3,000/$6,000 (unlimited non-network) o Weekly premiums of $10 Employee Only/$15 Employee and Children/$20 Employee and Spouse/$25 Family o Dental: $1,200, $825/5YR Ortho o Life/AD&D $2,000 Prescription Drug changes effective no later than January 1, 2014; o Implement RxTE/reference based pricing design (or Dr Weiss type program) that encourages the use of more cost-effective medication. This design will include a one-time exception process and a clinical review exception channel. Dental benefit changes in 2015 which co-consultants agree will maintain one month of unallocated reserves as of December 31, 2015. Establish a dependent and working spouse audit procedure that will be performed by an outside third party no later than 2014. The parties agree that those Hospital/Health Care and other non-affiliated Food industry agreements seeking to provide level 3 coverage for all its employees will pay a per hour employer contribution rate beginning July 2013 of $6.15/hr, January 2014 of $6.50/hr, and January 2015 of $7.15/hr o Food Industry affiliated agreements that seek to provide level 3 initial coverage will pay the contribution rate jointly agreed to by the co-consultants up to the date the member would have otherwise qualified for Level 3 coverage. At this point the contributions rate will revert to the food Industry agreement. The parties agree that beginning in 2014 with the implementation of the PPACA exchanges (and other regulations) and based on joint agreement the parties may meet to discuss to discuss the impact utilizing ACA exchanges (or other ACA required changes) will have on the plan of benefits, member out of pocket expenses and the overall cost to the employer. If the parties jointly agree changes are in the best interest of both parties, such changes shall be adopted. 12