Osco Deliberately Misleads Union Bargaining Committee during COVID-19 Vaccination Bargaining
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Business Agent Sean McGough
Phone: (847) 696-7500
E-mail: Sean@TeamstersLocal727.org
01-12-21 Teamsters Local 727 and Osco Drug, Inc., a wholly owned subsidiary of Albertsons, met on Thursday, January 7th to bargain over administration of the COVID-19 vaccines and met again on Friday, January 8th to resume contract bargaining in a federally mediated session. During both meetings last week, Osco management became indignant over serious questions regarding the company’s plan to manage the novel coronavirus vaccinations and, perhaps even worse, were downright flippant when asked to address the crucial issues that the Union bargaining committee has consistently expressed throughout contract negotiations.
With phase 1a of the national vaccination effort underway and 1b, which includes roughly 250,000,000 Americans on the horizon, bargaining on Thursday, January 7th was dedicated solely to the COVID-19 vaccines. The Union bargaining committee opened the meeting by clearly articulating the importance of each proposal to Osco and how each one directly relates to patient and pharmacists’ safety, staffing, workflow efficiencies, proper recognition, and fairness. The Union bargaining committee showed extreme concern about appropriate staffing levels as pharmacists have reported an unprecedented increase in calls inquiring about the vaccination. However, almost every Union proposal, including the staffing proposal, was met by Osco with a ‘hard no’ or a ‘we don’t know.’ When questioned further on their staffing plan, Osco ultimately admitted that no staffing formula exists, and they will provide staffing as they see fit and adjust accordingly. “This is like watching a train wreck in slow motion,” Said John Coli, Jr., Secretary Treasurer of Teamsters Local 727. “Osco is set to play a major role in the vaccination effort in the Chicagoland area and their plan is to essentially wing it. I worry for the safety not only of our frontline, essential Teamster pharmacists but also for our community as they rely on companies like Osco for the vaccine.”
Throughout the day, Osco was insistent that they were not withholding any information and maintained they were bargaining in good faith. However, as Osco claimed transparency at the table, the pharmacists on the Union bargaining committee received an email from Osco with the subject line ‘Technician Immunization Administration Training,’ which caused the committee to confront management at the table. The Union inquired why Osco did not disclose that it began to implement technician training while discussing staffing issues. At first, the Osco bargaining committee claimed they did not know the email was sent out but pivoted quickly and insisted that with recent changes to Illinois Pharmacy Practice Act, technicians are now legally allowed to administer vaccines. Instead of acknowledging they made a mistake by not discussing their plans with the Union first, they doubled down on defending their actions by stating they had previously proposed this change to the Union last month.
“I don’t think I have ever been more disappointed in Osco than I am today,” said John Coli, Jr. “Osco’s attempt to conceal and then steamroll their true plan shows a complete lack of respect to the collective bargaining process and utter disregard for their Teamster pharmacists. How can we build a relationship based on trust when every step of the way Osco has shown that they are untrustworthy? Whether it’s because they refuse to provide information on mis-filled prescription discipline or because of this underhanded plan with the technicians, they make it impossible to believe them. Our pharmacists are overworked and may welcome the additional support, but Osco has a duty to bargain with the Union before unilaterally implementing any COVID-19 vaccination policies or procedures. Teamsters Local 727 must ensure that our pharmacists are protected.”
Similarly, contract bargaining the following day was not particularly productive due to Osco’s refusal to discuss the issues that truly matter to pharmacists. Once again, The Union bargaining committee started off the day by introducing a comprehensive proposal to forgo the new hire rate in exchange for the Union withdrawing its proposals surrounding non-economic protections for current pharmacists. Once again, Osco flat out rejected the Union’s proposals. Instead, Osco proposed an increase to the part-time (20 or more hours per week) lump sums to $350 in year 3 and an increase to the part-time (less than 20 hours per week) lump sums to $375 in year 2. The Union bargaining committee responded in kind. The day concluded with Osco once again making minimal movement on part-time (less than 20 hours per week) lumps sums to $350 upon ratification.
Members with questions should reach out to Local 727 Business Representative Sean McGough at (847) 696-7500 or Sean@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments.
Osco Continues Down Same Tired Road During October 15 Bargaining Session
10.22.20 - Teamsters Local 727 and Osco Drug, Inc., a wholly owned subsidiary of Albertsons, met on Thursday, October 15th and resumed bargaining in a federally mediated session. Minimal movement was made around wages and scheduling. Osco continued down the same tired road by packaging proposals with a drastically reduced new hire rate, expanding 12-hour shift stores to another 50 stores, and increasing health care contribution costs as the coronavirus pandemic hits its second wave. Adding insult to injury, Osco continues to ask pharmacists to make major concessions while the Company experiences soaring profits. The Union bargaining committee stood firm with its proposals which are based on security, fairness, and safety.
The Union bargaining committee started off the day by reintroducing a comprehensive proposal to forgo the new hire rate in exchange for the Union withdrawing its proposals surrounding non-economic protections for current pharmacists. Once again, Osco flat out rejected the Union’s proposals. Osco’s first and only proposal of the day did not come close to addressing the major concerns of the Union bargaining committee. In typical fashion, Osco packaged a proposal with meager increases to the lump sums upon ratification. The Company’s package also included language regarding scheduling for undistributed pharmacists. The proposal would allow for floater pharmacists to make 7 requests per year for an off day during the week, not to exceed 5 days approved. This language was derived from a proposal the Union had previously submitted and would codify a practice the company claims it is doing already. These “concessions” were packaged with the same take backs the Union has fended off for more than a dozen sessions: 12-hour store expansion, health care increases, and a lower new hire rate.
The Union agreed again to the lump sum increases for full time pharmacists upon ratification and agreed to the slight modifications to the floater pharmacists scheduling language. The Teamsters Local 727 bargaining committee resubmitted the mutual withdrawal package along with modifications to Articles 3.1 which safeguards against a 12-hour shift expansion. The session ended with the ball in Osco’s court.
At a caucus during negotiations, the Union submitted an information request to Osco regarding COVID-19 exposure at a union store pharmacy. Concerned for the safety of pharmacists and the public, the Union demanded, in detail, what remedial actions the Company took to mitigate exposure, sanitize the pharmacy, protect pharmacists, and utilize contact tracing beyond the pharmacy. As the coronavirus pandemic has killed over 200,000 people in the United States and Teamsters Local 727 pharmacists are on the frontline, the Union requested that the Company produce the information within 7 days. Due to the gravity of the situation, this is not an unreasonable deadline. Instead of agreeing to meet the deadline, Osco informed the Union that it may not have the information on time. At the time of publishing this story, the Union has yet to receive any item of the information request.
“Osco’s response to the Union’s information request is callous,” said John Coli Jr., Secretary Treasurer of Teamsters Local 727. “This is critical information, and the Company should have it readily available at their fingertips. What Osco management does to protect their frontline, essential pharmacists during this worldwide health pandemic could be the difference between life and death. Whether it’s at the bargaining table, in the pharmacies, or with simple requests for information, there is no transparency. It’s one thing to withhold information at the bargaining table because it makes them feel big, it’s another not to provide information about health and safety measures. It’s not only stupid, it’s potentially life-threatening. Nevertheless, we will continue on negotiating in good faith, eagerly awaiting Osco to join us.”
Under federal law, Osco must maintain the status quo while the parties continue negotiations for a new CBA. The Company is prohibited by federal law from increasing health insurance premiums, expanding 12-hour shifts, introducing a two-tier wage system, or making any other change to an employee’s terms or conditions of employment during negotiations.
Members with questions should reach out to Local 727 Business Representative Sean McGough at (847) 696-7500 or Sean@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments.
Osco Continues Concessionary and Regressive Bargaining, Pushes Profits over Safety While Historic Sales Skyrocket
08.31.20 - Teamsters Local 727 and Osco Drug, Inc., a wholly owned subsidiary of Albertsons, met on Friday, August 28th and resumed bargaining in a federally mediated session. The Union bargaining committee made a bold attempt to advance negotiations by proposing a mutual withdrawal package of Osco's divisive proposals while also moving closer on outstanding economic issues. Osco previously rejected the Union’s non-economic proposals which would value and protect current pharmacists from the dangers of a new hire rate. Osco continues to push for a new hire rate despite record increases in revenue.
The Union bargaining committee started off the day by introducing a comprehensive proposal to forgo the new hire rate in exchange for the Union withdrawing its proposals surrounding non-economic protections for current pharmacists. Osco flat out rejected the Union’s proposals. “If Osco is not going to provide reasonable contractual protections around new hires then the obvious solution is no new hire rate,” said John Coli Jr, Secretary-Treasurer of Teamsters Local 727.
As previously communicated to the membership, Albertsons is reaping unprecedented revenue due to COVID 19. Albertsons continues to be a huge financial beneficiary of the COVID 19 pandemic. According to a recent article in ‘Mass Market Retailers’, “Albertsons’ net income for the first quarter…skyrocketed 1,096% to $586.2 million from $49 million in the prior quarter. The supermarketer’s sales and other revenue increased 21.4% to 22.8 billion compared to 18.7 billion for the first quarter of fiscal 2019.”
Despite record sales, Osco made a regressive proposal on the new hire rate by reducing the new hire wages to $58.00 per hour, down, from $59.00 as proposed by Osco at the last bargaining session. “Osco continues to drag out negotiations for a new hire rate they do not need,” said John Coli Jr. “Osco references their ’competitors’ as justification for this proposal, but at the end of the day their bottom line tells a very different story,” added Coli. The parties were able to agree on a full-time pharmacist lump sum payment at ratification of $2,000.00. Lump sum payments for part-time employees remains outstanding as do other wage proposals. Osco continued to push for an increase in the share pharmacists pay of healthcare premiums and made minimal movement reducing the share of pharmacists’ costs to a 4% increase over the term of the agreement.
Osco ended bargaining in bad faith when it made no movement on its final proposal of the day. “Osco tries to frustrate the membership with this bogus proposal, but it will not work. We will remain united and our resolve to get a fair contract for the members will not falter. Since the Parties are not at impasse, Osco needs a contract to implement a new hire rate. We can wait for them to come to the table with reasonable proposals,” stated John Coli Jr.
Under federal law, Osco must maintain the status quo while the Parties continue negotiations for a new CBA. The Company is prohibited by federal law from increasing health insurance premiums, expanding 12-hour shifts, introducing a two-tier wage system, or making any other change to an employee’s terms or conditions of employment during negotiations.
The Union will update the membership when future negotiations dates are scheduled.
Members with questions should reach out to Local 727 Business Representative Sean McGough at (847) 696-7500 or Sean@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments.
Osco Made Little Movement in Negotiations While Albertsons Net Income Skyrockets Nearly 1,100% in the First Quarter
08.26.20 - Bargaining resumed on July 22 between Teamsters Local 727 and Osco Drug, Inc., a wholly owned subsidiary of Albertsons. The Union’s bargaining committee remained steadfast throughout the day in its positions to: keep health care costs down, limit the Company’s ability to increase the number of stores with 12-hour shifts, and provide increased job protections for all current pharmacists. In stark contrast to the Union’s proposals, which also included various transparency measures in the scheduling and bidding procedures (such as requiring two weeks’ notice for posting of open positions, including undistributed pharmacist positions) and movement on lump sum payments for pharmacists, Osco’s committee made insufficient movement.
Osco representatives outright denied the Union’s proposals and made no counter proposals outside of a slight increase to previous proposals regarding lump sum payments. Osco’s counter gives all full-time pharmacist a $1,000.00 lump sum payment upon ratification, $1,000.00 on May 2, 2021, and $1,000.00 on May 1, 2022. Osco also offered lump sum payments for part-time pharmacists averaging 20 or more hours per week of $500.00 each year; for part-time pharmacists working less than 20 hours per week, Osco offered $275.00, $300.00, and $375.00 each year. Osco made no changes to its earlier proposal to increase the pharmacists’ share of healthcare premiums by 4.5% over the term of the contract unless management rates are lower. The Company also proposed a “new hire” wage rate of $59.00 per hour, increasing their former proposal by only one dollar.
Although the Company continues to make these insulting economic proposals and refuses to address pharmacists’ concerns over working conditions, its parent company Albertsons’ continues to be a huge financial beneficiary of the COVID 19 pandemic. According to a recent article in ‘Mass Market Retailers’, “Albertsons net income for the first quarter…skyrocketed 1,096% to $586.2 million from $49 million in the prior quarter. The supermarketer’s sales and other revenue increased 21.4% to 22.8 billion compared to 18.7 billion for the first quarter of fiscal 2019.” The article also states that “Vivek Sankaran, President and Chief Executive Officer, said the first-quarter financial performance was made possible by employees’ “hard work and dedication” during a pandemic.”
“If Albertsons is truly inspired by their employees, they would come to table with some of their record setting COVID 19 sales revenue and settle this contract,” said John Coli, Secretary-Treasurer of Teamsters Local 727. “It’s ridiculous that Osco’s bargaining committee continues to try and separate themselves from Albertsons’ financial success. The pharmacy operates under the Albertsons umbrella and adds to the financial strength of the company. It’s time for Osco to get real and recognize the value and contributions of Osco pharmacists.”
Osco also continues to provide partial information regarding its proposals to pharmacists. The information below provides more detail and a full perspective on Osco’s claims.
ISSUE: NEW HIRE RATES
Osco’s Claim: Osco claims that its new hire rates will not be used as a factor in pharmacist selection or transfer.
UNION RESPONSE: Osco continuously attempts to manipulate the current bid procedure. The Union has fought numerous attempts by Osco to place less senior, and virtually new, employees into open store positions. Osco repeatedly states ridiculous justifications for its store placement selections and offers an insufficient amount of time for pharmacists to submit a bid. Adding an economic incentive at the store level to place new hires into staff positions will only further exacerbate these issues. In response to Osco’s proposal for new hires, the Union has proposed modest increases to new hire rates (approximately an average of 3% per year over a 5-year term). The Union has also proposed specific language to protect pharmacists from displacement by the new hires (something Osco should easily agree to if it truly has no desire to use the new hire rate in selection).
The Union’s proposals include:
2 weeks’ notice for any bid;
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Prevents new hires from bidding on staff pharmacist positions during the term of the agreement;
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Only allow new hires to be selected for a head pharmacist position if no current employee bids;
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Prevents new hires from eliminating regularly scheduled part-time employees’ hours; and
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Provides notice to all employees of new floating pharmacist positions.
ISSUE: 12-HOUR STORES
Osco’s Claim: Osco claims that it does not seek to expand 12-hour shifts beyond what already exists in the CBA.
UNION RESPONSE: Osco has taken the absurd position that the CBA allows them to expand 12-hour shifts to an additional 50 stores. While the Union strongly disagrees with this interpretation and practices under the CBA, the Union would rather resolve this issue at the bargaining table rather than arbitration.
ISSUE: HEALTH INSURANCE
Osco’s Claim: Osco claims it is only seeking nominal increases to health insurance.
UNION RESPONSE: Osco is seeking a 4.5% increase to the pharmacists’ share of health insurance premiums. Osco’s proposed increase is in addition to any increase in the premium for health insurance. Osco pharmacists already pay one of the highest rates for health insurance in the Company. For example, warehouse workers pay $42.50 per week for family coverage under the same HRA Plan compared to Osco’s proposal to pay $117.27 per week for the same coverage.
ISSUE: WAGES
Osco’s Claim: Osco claims it pays better wages than Walgreens.
UNION RESPONSE: While Osco’s wages are higher than Walgreens, the Walgreens’ contract is expired. Also, Jewel-Osco and Walgreens operate in different markets. Additionally, pharmacists have been
essential to operations during the coronavirus pandemic and Albertson’s has seen record sales during the pandemic. Once a Coronavirus vaccine becomes widely available Osco will likely see even greater
increases in revenue, while pharmacists will see greater demands placed on their daily job duties.
The parties will meet on Friday, August 28 to resume bargaining in a federally mediated session. The Union bargaining committee remains focused and committed to bargain in good faith for a fair contract.
Members with questions should reach out to Local 727 Business Representative Sean McGough at (847) 696-7500 or Sean@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments.
Sneeze Guards To Be Installed at Osco Pharmacies Covered By 727 Contract
03.21.20 - After hearing stories of unsafe work conditions from pharmacists represented by 727, Teamsters Local 727 promptly demanded that Osco do more to protect its frontline pharmacists represented by 727. The Union is pleased to report that Osco has reported that it has begun installing plexiglass sneeze guards in pharmacies. The Union will continue to keep members updated. Members with questions should contact Sean McGough at (847) 696-7500.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments.
Bargaining Updates
Osco Pharmacists Sound their Support for the Union’s Contract Proposals at Sunday Meeting
Questions?
Contact your agent.

Teamsters Osco Business Agent:
Sean McGough
Phone: (847) 696-7500
E-mail: Sean@TeamstersLocal727.org
Stay Informed!
Throughout negotiations, Local 727 will provide pharmacists with bargaining updates via email, OscoTeamsters.com, and TeamstersLocal727.org.
To have updates sent directly to your email inbox, contact MWard@TeamstersLocal727.org.
02.10.20 — Yesterday, Osco pharmacists attended an informational meeting at the Teamsters Local 727 meeting hall in Park Ridge. After the Union bargaining committee updated members on the progress of contract negotiations, pharmacists had an opportunity to ask questions and share their thoughts.
An overwhelming number of pharmacists expressed their opposition to the Company’s proposed expansion of 12-hour shifts and sounded their support for the Union bargaining committee’s proposed restrictions on new pharmacists hired at the lower wage rate.
“We’re very proud of our pharmacist members for remaining united throughout these trying negotiations,” said John Coli, Jr., Secretary-Treasurer. “Local 727 remains committed to fighting for a fair contract for our Osco pharmacy members. We are not giving up and, with our members united, we will secure a strong successor contract.”
Local 727 and Osco are next scheduled to meet to continue bargaining over a new collective bargaining agreement on Monday, March 9. The Union will continue to update members as negotiations proceed.
Members with questions should contact Local 727 Business Representative Sean McGough at (847) 696-7500 or Sean@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments.
Local 727 Responds to Osco’s Lies and Misrepresentations, Union to File Additional ULPs
01.28.20 — It has come to the Union’s attention that Osco management has sent a bargaining update to pharmacists containing misleading and false information. Teamsters Local 727 would like to take this opportunity to correct the Company’s misrepresentations and provide members with the facts.
Wages:
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While it is true that Osco pharmacists make about $4.75/hr more than Walgreens and CVS pharmacists, Osco management fails to acknowledge in its update that Osco pharmacists have far more responsibilities than any other retail pharmacists. Does Osco not believe more daily duties deserve higher compensation?
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Osco claims it pays pharmacists more than Walgreens, however, what the Company does not state in its update is that the Walgreens contract will be expiring in May and, after a 3-year wage freeze, that Walgreens pharmacists are likely to fight hard for a wage increase. Additionally, though their wages have been frozen since 2017, under their CBA, Walgreens pharmacists have received significantly larger annual lump sum payments over the past 3 years than what Osco is proposing for its own employees.
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Osco claims it pays pharmacists more than CVS, but it does not state in its update that a CVS pharmacists’ compensation package also includes participation in the Local 727 Legal and Educational Assistance Fund, as well as Local 727’s vision plan, which are all 100% employer-paid benefits. Additionally, Osco fails to include the fact that CVS wages have been frozen since 2015 because CVS has, as determined by the National Labor Relations Board Office of Appeals, engaged in bad faith bargaining throughout negotiations.
New Hire Rate/Bidding:
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While it is true that Osco’s new hire wage rate matches Walgreens, the Company again fails to point out that the Walgreens contract will be expiring in May and it is likely that Walgreens pharmacists will fight to raise their new hire wage rate. Should Walgreens pharmacists succeed, Osco’s proposed new hire wage rate could be the lowest in the industry.
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Osco management correctly points out that the “Walgreens Side Letter” provides some protections for pharmacists; however, Osco downplays the fact that the Walgreens’ letter only requires Osco to increase its top wage rate up to 2.75%. If Walgreens pharmacists’ new hire wage rate increases by more than 2.75%, Osco new hires could be the lowest paid union pharmacists in the Chicagoland area.
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In an effort to meet in the middle, the Local 727 bargaining committee’s latest proposal included a starting new hire wage rate of $58—the same amount proposed by Osco—and large wage raises each year of the agreement that nearly catch the new hire wage rate up to the full rate. The Union asked only for additional job protections for current pharmacists to ensure they are not replaced by the lower-paid employees. Despite the Union agreeing to a new hire rate that doesn’t fully catch-up, Osco rejected the Union’s proposal.
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Despite Osco’s assurance that lower-paid pharmacists will not be able to “bump” higher-paid pharmacists, the lack of transparency of the Company’s bid process makes this a promise pharmacists cannot trust. Local 727 members continue to communicate to the Union their fears that the lack of transparency in the bid process will result in Osco management obfuscating its cost-cutting focus by relying on a flimsy pretext or pointing to an unspecified “business need” as the justification for promoting a lower-paid pharmacist over a higher-paid pharmacist.
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To ensure all pharmacists are made aware of all open positions, Local 727 has proposed contract language that would require Osco to email all open positions to all pharmacists’ individual emails, as well as all store email accounts, at least two weeks before bidding closes. Though Osco already emails most open positions to pharmacists, Osco has rejected this proposal.
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Since Osco’s lack of transparency means there is no way to guarantee management will not promote a lower-paid pharmacist to a staff or head position merely to cut budget costs, Local 727 has proposed restricting the promotion of lower-paid pharmacists for the duration of the contract. However, should no higher-paid pharmacist bid or accept an open head pharmacist role—positions Osco management claims it has had difficulty filling—the Union bargaining committee has agreed it would be acceptable to promote a new hire only if the Company begins paying the pharmacist the full wage. Again, the Union bargaining committee, unlike Osco, got creative and created a proposal that addresses the concerns of both Local 727 members and the Company. Osco has rejected the Union’s fair proposal.
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Under Osco’s proposed two-tier wage system, lower-paid pharmacists can be promoted to a head pharmacist position. As such, a head pharmacist could make less than a staff pharmacist working in the same pharmacy.
Health Insurance:
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Osco claims in its update to pharmacists that it has “agreed to the Union’s approach regarding employees’ contribution to the HRA plan.” This is not true. Pharmacists are currently responsible for paying approximately 27-31% of the HRA premium rate. Local 727 has proposed freezing the share of the premium covered by pharmacists. This would mean that pharmacists continue to pay 27-31% of the premium but, as health care costs increase, that share may cost more. Osco has proposed increasing pharmacists’ share AND increasing the cost of the HRA premium.
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Osco has proposed removing the Most Favored Nations clause of the CBA, which guarantees that pharmacists’ health care costs will be lowered to match managers’ health care costs if the Company decreases management’s premium rate.
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Based on management’s current 2020 health care rates, Osco’s proposed lump sums will be almost completely eaten up by increasing health care costs. The little amount that will be left after pharmacists pay their more expensive health care premium will not cover cost-of-living increases, meaning pharmacists will be receiving a pay cut under Osco’s proposed lump sums.
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While Osco’s proposed lump sums will cover the current year’s health care increases, they are not guaranteed to cover future years’ increases, which are currently unknown.
Vacation/Scheduling:
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The one week holdback of vacation that Osco continues to tout as a generous new benefit for pharmacists is actually a standard past practice that Osco took away from its hardworking employees.
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Osco claims it wants to reinstate the practice of allowing pharmacists to hold back a week of vacation to increase flexibility for its employees but the Company has repeatedly ignored the fact that a one week holdback does not work well for floaters who do not receive their schedules well in advance. As such, floaters risk losing their vacation if they hold back a week.
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To be fair to all pharmacists and make it possible for floaters to schedule doctors appointments in advance, Local 727 has proposed floaters be given the opportunity to request which day of the week is their “off-day” up to 5 times per year if they have not yet received their schedule for that week. These are not additional PTO days and they are not guaranteed. Under the Union’s proposal, the Company must simply make a reasonable effort to accommodate a floater’s request. Osco management has stated in negotiations that it is willing to work with floaters to get them to their doctors appointments—Local 727 is only asking for that promise in writing.
12-Hour Stores:
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Under the CBA, Osco has hit its maximum number of stores with 12-hour shifts. Though Osco agreed to maintain the status quo, the Company has recently claimed it has a different interpretation of the contract language. Osco management seems to believe that the current language will “reset” the number of stores they may introduce 12-hour shifts to and that they will be permitted to transition an additional 50 stores after ratification. Should Osco introduce 12-hour shifts at another 50 stores, the vast majority of Chicagoland’s Osco pharmacies would then have 12-hour shifts.
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Seeking the middle ground, the Local 727 bargaining committee agreed to allow Osco to expand 12-hour shifts to a small number of additional stores (5 stores per year) only if pharmacists in stores with 12-hour shifts be permitted to voluntarily reduce their schedules to a guaranteed 32-36 hours per week. Under the Union’s proposal, part-time pharmacists would then be used to cover the remaining hours on a 12-hour shift. Osco has rejected this fair proposal.
Past/Future Bargaining Sessions:
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While Osco has tried to paint the Union as dragging its feet, it has in fact been Osco negotiators who have repeatedly delayed negotiations. Despite requests from Local 727 to begin negotiations well in advance of the contract’s expiration, Osco negotiators’ personal scheduling conflicts and unavailability prevented the parties from meeting until April. After pharmacists overwhelmingly rejected Osco’s last offer, Osco negotiators’ personal conflicts and unavailability again delayed the parties from resuming negotiations. Osco negotiators have been the only ones to cancel a bargaining session at the last minute.
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The Local 727 bargaining committee did end the parties’ last bargaining session at approximately 3 p.m. AFTER Osco management presented a regressive contract proposal, a proposal related to 12-hour shifts that Osco conveniently did not mention in its recent update.
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Local 727 and Osco will meet next on March 9. Before the parties reconvene, Local 727 will host an informational meeting for pharmacists on February 9 at 6 P.M. in the Union Hall at 1300 W. Higgins Rd., Park Ridge.
Local 727 has made it clear to Osco representatives that it will not recommend ratifying a contract that hurts members. To help the parties reach a fair agreement, the Local 727 bargaining committee has worked hard to seek the middle-ground, putting time and energy into developing creative contract proposals that protect pharmacists while also addressing concerns brought forward by Osco management. Nevertheless, Osco has repeatedly dismissed or outright ignored its employees’ concerns and rejected the Union’s proposals.
Throughout negotiations, Osco management has attempted to justify its undervaluing of its own employees by shifting the focus onto its competitors. While the Company claims wage freezes and low raises, as well as a two-tier wage system, are necessary to “remain competitive,” Osco’s parent company, Albertsons, does not appear to be struggling and in need of a competitive edge. In fact, Albertsons most recent financials report net sales and revenue of $60.5 billion in fiscal year 2018. The Company is doing so well that it is preparing for an Initial Public Offering, which is likely to pour large sums of money into the Company’s coffers.
For reasons that appear only to be selfish and stingy, Osco management has continued to press for contract provisions that threaten the health, safety, and jobs of pharmacists. Even after pharmacists overwhelmingly rejected the Company’s first offer, Osco has not made significant movement on its outstanding contract proposals. Instead, Osco management has begun putting forward regressive contract proposals.
“If Osco representatives are not clear on why pharmacists are outraged by their proposals, they clearly have not been listening,” said John Coli, Jr., Secretary-Treasurer of Local 727. “Management is stooping to a new low. Presenting a blatantly regressive proposal and then reaching out to pharmacists to spread lies is unconscionable. Osco management is picking a fight with the wrong Union. The Company will be held accountable for the actions of its representatives. No matter how long it may take, Local 727 will not stop fighting for a fair contract for our members.”
Local 727 intends to file additional unfair labor practice charges against Osco as a result of the Company’s clear misrepresentations. The Union’s previous ULP charge, filed over Osco’s refusal to provide requested information, is pending with Region 13 of the National Labor Relations Board.
Members with questions should reach out to Local 727 Business Representative Sean McGough at (847) 696-7500 or Sean@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments.
Osco Fails to Reciprocate Union’s Olive Branch Prompting Early End to Final Scheduled Day of Mediation
01.23.20 — Teamsters Local 727 and Osco Drug, Inc., a wholly owned subsidiary of Albertsons, met today, January 23, for the parties’ final scheduled mediation session. Though the Union bargaining committee extended an olive branch during the parties’ bargaining session, Osco representatives proceeded to make little significant movement.
Today, the Local 727 bargaining committee presented Osco representatives with a comprehensive contract proposal that addresses all outstanding issues and includes stronger job protections for pharmacists. Under the Union’s proposal, to prevent current pharmacists from being replaced by a lower-paid newly hired pharmacist, new hires are prohibited from bidding on all open staff and head pharmacist positions. Should no pharmacist apply for or accept an offer for a head pharmacist position, Osco may promote a pharmacist in the lower wage tier to the position of head pharmacist only if the Company agrees to pay the pharmacist the full wage.
To prevent staff and head pharmacists from being forced to work 12-hour shifts and to protect part-time pharmacists from losing hours if a pharmacy introduces 12-hour shifts, Local 727 proposed that staff and head pharmacists in stores with 12-hour shifts be permitted to voluntarily reduce their schedules to a guaranteed 36 hours per week. Part-time pharmacists would then be used to cover the remaining 4 hours on a 12-hour workday. Additionally, to further safeguard the positions of part-time pharmacists, the Union proposed that the Company be prohibited from using undistributed pharmacists—including those in the lower wage tier—to eliminate regularly scheduled part-time shifts.
Osco outright rejected all of the Union’s proposals and responded with a counterproposal that made little significant movement.
“The Union bargaining committee has repeatedly expressed members’ concerns to Osco management and the Company has repeatedly turned around and ignored those concerns. Today, we rolled up our sleeves and came up with a proposal that protects all of our hardworking members and addresses their concerns. By flatly rejecting the Union’s proposals, Osco seems to be saying they just don’t care about their employees,” said John Coli, Jr., Secretary-Treasurer of Local 727.
As a result of Osco representatives seeming unwillingness to bargain in good faith with the Union, the Local 727 bargaining committee chose to end the day’s mediation session early.
“The Local 727 bargaining committee has been working for more than eight months to secure a fair agreement. We will continue to fight, as long as may be necessary, until we win a contract that adequately protects our members,” added Coli.
As a reminder, under federal law, Osco must maintain the status quo while the parties continue negotiations for a new CBA. The Company is prohibited by federal law from increasing health insurance premiums, expanding 12-hour shifts, introducing a two-tier wage system, or making any other change to an employee’s terms or conditions of employment.
Before today’s bargaining session ended, Local 727 requested additional meeting dates from Osco. Local 727 will update members when a bargaining date has been scheduled.
The Local 727 bargaining committee encourages Osco members with questions or feedback to continue to reach out to union stewards or Union Business Representative Sean McGough at (847) 696-7500 or Sean@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments
Local 727 Files ULP Charge Against Osco, Presses for Release of Information on Misfills; Osco Has Yet to Present a Contract Worth Ratifying
01.22.20 — Representatives of Osco Drug, Inc., a wholly owned subsidiary of Albertsons, again rejected all of Teamsters Local 727’s good faith attempts to reach an agreement during the parties’ latest mediation session today, January 22.
The Local 727 bargaining committee not only took the time to explain in-depth, on multiple occasions today, members’ concerns regarding the Company’s outstanding contract proposals, but the Union also presented Osco representatives with a path to resolving these issues and reaching a fair agreement. The Company responded by once again dismissing its employees’ concerns, rejecting all of Local 727’s contract proposals, and making little significant movement on its contract proposals.
Among the remaining contract proposals, one of the most concerning to the Union is that regarding the expansion of 12-hour shifts. When negotiations began last year, the Local 727 bargaining committee made it clear that it believes forcing pharmacists to work long shifts of 12 or more hours may lead to exhaustion and mistakes. To understand the impact of 12-hour shifts, Local 727 submitted a formal information request to Osco requesting information on misfills in stores with 12-hour shifts and those without 12-hour shifts. After months of waiting, Osco representatives have failed to provide the Union with this requested information. Instead, Osco representatives demanded Local 727 sign a confidentiality agreement before the Company release the information.
“Local 727 has long advocated that the expansion of 12-hour shifts is a threat to public safety,” said John Coli, Jr., Secretary-Treasurer of Local 727. “If Osco believes forcing pharmacists to work 12 or more hours is truly safe for both the pharmacist and the patient, why won’t they release this information? What are they trying to hide?”
As a result of the Company’s failure to provide the Union with the requested information, Local 727 has filed unfair labor practice charges with Region 13 of the National Labor Relations Board against Osco. All charges are currently pending.
In addition to dismissing their employees’ concerns over 12-hour shifts, Osco representatives also continued to ignore members’ concerns regarding the introduction of a new two-tier wage system that does not offer new hires the opportunity to catch up to the full wage-rate.
“Nothing in Osco’s current proposal is worth ratifying. Whether it’s part-timers losing their jobs because more stores have 12-hour shifts or it’s employees fearing they will be replaced by pharmacists being paid less than they are, this contract will hurt all bargaining unit members,” added Coli. “No contract is better than the contract being offered by Osco.”
Local 727 and Osco will meet again for mediation tomorrow.
The Local 727 bargaining committee encourages Osco members with questions or feedback to continue to reach out to union stewards or Union Business Representative Sean McGough at (847) 696-7500 or Sean@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments
Osco Continues to Drag Out Negotiations, Offers Minimal Movement on Wages, Ignores Union’s Concerns Over Health Care Costs, New Hire Wages
01.14.20 — During a full day of mediation with Teamsters Local 727 yesterday, January 13, representatives of Osco Drug, Inc., a wholly owned subsidiary of Albertsons, offered little to no movement on the Company’s outstanding contract proposals.
While the Company did offer minimal movement on the nominal lump sum payments it is proposing to offer pharmacists in lieu of wage increases during the first several years of a new contract, Osco management offered no such movement on its proposal to increase health care premiums. Additionally, Osco representatives flatly rejected—and offered no specific counter-proposal to—each of the Union’s proposals to include a provision in the new contract that would allow new hires to catch-up to the full wage rate by the end of the agreement.
During yesterday’s negotiations, Local 727 bargaining committee members reached out to fellow Osco members to update them on the state of negotiations and gather feedback. While Local 727 stewards did not have enough time to reach out to the entire bargaining unit, the Union bargaining committee was pleased to have the opportunity to directly address many members’ questions and thrilled to hear that the resolve of Osco pharmacists on the outstanding issues remained strong.
“So long as we remain united, Local 727 will have the leverage and bargaining power to secure a fair new collective bargaining agreement,” said Sean McGough, Local 727 Business Representative for Osco pharmacists. “The Union bargaining committee will not give up. We will continue to fight until Osco begins treating our members with the respect they deserve.”
The parties are currently scheduled to continue mediation on Wednesday, January 22 and Thursday, January 23.
The Local 727 bargaining committee encourages Osco members with questions or feedback to continue to reach out to union stewards or Union Business Representative Sean McGough at (847) 696-7500 or Sean@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments
Osco’s Attempted Bait-and-Switch on 12-Hour Days Hinders Progress During Day Two of Mediation
01.10.20 — The Teamsters Local 727 bargaining committee and representatives of Osco Drug, Inc., a wholly owned subsidiary of Albertsons, continued federal mediation on Monday, January 6, 2020. Despite the Union’s repeated good faith efforts to reach an agreement, Osco management continued to dismiss the concerns of its hardworking employees and make little movement on its outstanding proposals.
During Monday’s negotiations, Osco once again ignored pharmacists’ concerns over health care costs rising and surpassing the Company’s proposed wage increases and offered no movement on its proposal to increase insurance premiums by an unspecified amount. Osco representatives also continued to put forward a proposal to introduce a new, lower wage tier for new hires. While the Company did offer minimal increases for new hires in year 4 and year 5 of the agreement, Osco has yet to agree to a provision that would allow new hires to catch-up to the full wage rate by the end of the agreement.
Though the Company made slight movement on new hire wages during Monday's meeting, progress was severely hindered by Osco representatives’ claims regarding the expansion of pharmacies with 12-hour shifts. The Union maintains its position that, under the current contract language, the Company has reached the maximum number of stores in which pharmacists can work 12-hour shifts; however, the Company now claims it can expand 12-hour shifts to additional unionized stores.
“When the Union bargaining committee and Osco agreed to keep the current contract language for 12-hour days, it was abundantly clear that the status quo would be maintained. The Union does not look favorably on Osco’s sudden, blatant bait-and-switch attempt,” said Sean McGough, Local 727 business representative for Osco pharmacists. “Local 727 will continue to fight to protect the jobs of part-time pharmacists as well as the health and work-life balance of all of our Osco members.”
In addition to hindering negotiations with its about-face on 12-hour shifts, Local 727 has also received reports that Osco pharmacists were questioned by management regarding negotiations. As such, Local 727 strongly encourages all Osco pharmacists that were approached by a manager and questioned about negotiations at any time to contact Local 727 Business Representative Sean McGough at (847) 696-7500 or Sean@TeamstersLocal727.org.
The parties are next scheduled to meet on Monday, January 13.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments
Local 727 Bargaining Committee Stands Firm During First Mediation Session with Osco
12.19.19 — Following eight months of negotiations for a successor collective bargaining agreement and a resounding rejection of the Company’s first contract offer, Teamsters Local 727 and Osco Drug, Inc., a wholly owned subsidiary of Albertsons, began federal mediation yesterday, Wednesday, December 18.
The Union opened the parties’ first mediation session by presenting the federal mediator with a comprehensive contract proposal addressing each remaining issue, including Local 727’s outstanding wage and health care proposals. The Local 727 bargaining committee also had an opportunity yesterday to explain to the mediator both the rationale behind and the importance of each of the Union’s proposals.
While the Union stood firm and continued to demand fair, annual wage raises for all Osco pharmacists, Local 727 made some minor movement on its health care proposals in a good faith attempt to move the parties closer towards reaching an agreement. Local 727’s revised proposal includes a two-year freeze on health care premiums followed by a three-year freeze on the percentage pharmacists must pay of the premium. This modification would prohibit Osco from shifting more of the burden of health care costs onto the shoulders of pharmacists.
“Though we may not have made a great deal of progress yesterday, the Union bargaining committee remains optimistic that mediation will help us to reach an agreement,” said Sean McGough, Local 727 business representative for Osco pharmacists. “Local 727 will not give up until our members receive the fair treatment they deserve.”
The parties’ next mediation session is tentatively scheduled to take place on Monday, January 6, 2020.
Members with questions should contact Local 727 Business Representative Sean McGough at (847) 696-7500 or Sean@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments
Osco Cancels Today’s Bargaining Session
12.10.19 — With little notice, representatives of Osco Drug, Inc., a wholly owned subsidiary of Albertsons, cancelled today’s negotiations with Teamsters Local 727. The parties’ meeting today was to be the first bargaining session between Osco and Local 727 since pharmacists overwhelmingly voted to reject the Company’s contract offer in October and the first meeting attended by a federal mediator.
“The Union bargaining committee was ready and prepared to jump back in to negotiations. While we’re disappointed by this delay, Local 727 remains determined to secure a strong, fair contract for our pharmacist members as quickly as possible,” said Local 727 Lead Business Representative Zach Frankenbach.
Local 727 and Osco are next scheduled to meet on Wednesday, December 18. The Union will continue to update members as negotiations proceed.
Members with questions should contact Local 727 Lead Business Representative Zach Frankenbach at (847) 696-7500 or Zach@TeamstersLocal727.org or Local 727 Business Representative Sean McGough at (847) 696-7500 or Sean@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments
Osco Pharmacists Overwhelmingly Reject Company’s Contract Offer
10.18.19 — Over 93% of Osco pharmacists have voted to reject the Company’s recent five-year contract offer.
Today at 1 p.m. in the Teamsters Local 727 offices in Park Ridge, several Osco pharmacists witnessed the counting of the 218 received ballots. When all ballots were counted, the final tally was 203-15 against contract.
“Osco thought they could offer the bare minimum and pharmacists would just take it. I am so proud of our members and bargaining committee for proving the Company wrong,” said Zach Frankenbach, Lead Local 727 Business Representative for Osco pharmacists. “With this vote, pharmacists have sent the Company a message that they are united, they are strong, and they will not stand for anything less than the respect and fair treatment they deserve.”
This vote was not a strike vote, but only a vote to accept or reject the Company’s recent offer. The Local 727 bargaining committee has informed Osco management of the vote results. The parties are currently working to determine a date for their return to the bargaining table. The Union will update members when a meeting date has been determined.
Members with questions should contact Local 727 Osco Business Representative Zach Frankenbach at (847) 696-7500 or Zach@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments
Contract Ballots Mailed, Management’s Tuesday Email Omits Key Facts, & Additional Updates from Local 727
10.09.19 — This past Friday, October 4, Teamsters Local 727 mailed ballot packets to all Osco pharmacists. Included in the packet is Osco’s five-year contract offer, a summary sheet, ballot, and stamped return envelope. If you have not received your ballot by Friday, October 11, contact Local 727 Lead Business Representative Zach Frankenbach IMMEDIATELY at Zach@TeamstersLocal727.org or (847) 696-7500.
Osco’s contract proposal includes:
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A four-year wage freeze;
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A single wage raise of 1% in 2023;
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Lump sum payments of $750 for full-time pharmacists, $450 for part-time pharmacists who worked an average of twenty or more hours per week in the past year, and $250 for part-time pharmacists who worked less than twenty hours per week in the past year during year one of the agreement;
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Lump sum payments of $350 for full-time pharmacists, $200 for part-time pharmacists who worked an average of twenty or more hours per week in the past year, and $125 for part-time pharmacists who worked less than twenty hours per week in the past year during year four of the agreement;
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Unspecified health care premium increases, which are set by management;
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A new lower wage tier for new hires that will not catch-up to the full wage rate by the end of the agreement; and
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No guaranteed protections for senior employees when bidding against lesser-paid new hires for staff pharmacy positions.
Despite what a recent email from Osco’s Director of Pharmacy Relations Ryan McCann may claim, this proposal is not guaranteed to remain “superior to what Walgreens and CVS offer their pharmacists…” Mr. McCann failed to mention in his email yesterday that Osco’s latest proposal eliminates the Walgreens Side Letter, which means Osco pharmacists will no longer be guaranteed wage rates at or above those paid to Walgreens pharmacists. The CVS collective bargaining agreement has expired as will the Walgreens contract in 2020. If Walgreens pharmacists negotiate a wage increase next year, Osco would no longer be obligated to raise its wage rates and Osco’s proposed new hire wage rate could become the lowest in the industry.
Additionally, though Mr. McCann claimed in his email that Osco’s proposal of a lower wage rate for new hires will not “displace or otherwise impact [Osco’s] existing pharmacists,” he again failed to mention that Osco representatives rejected Local 727’s proposal to give senior pharmacists preference when bidding for open staff pharmacy positions. Osco’s current offer includes no guarantee that lower-paid newly hired pharmacists will not be given preference over higher-paid senior pharmacists.
Mr. McCann cannot promise Osco pharmacists will continue to be paid more than CVS and Walgreens pharmacists because there is no way for Mr. McCann, or any other Osco manager, to know precisely what CVS or Walgreens pharmacists’ wage rates will be over the next four years. When the parties last met for negotiations, Osco representatives were, however, able to confirm that the Company could afford the higher annual wage raises proposed by Local 727.
As a result of Osco’s seeming unwillingness to treat their hardworking employees with the fairness and respect they deserve, the Union bargaining committee is recommending that all Osco pharmacists vote “AGAINST CONTRACT.”
**ERROR IN OSCO CONTRACT PROPOSAL**
Osco has confirmed that the Company’s offer includes a significant error. In Article 11 (Head Pharmacists) of the contract proposal mailed to all Osco pharmacists, the first paragraph states that Head Pharmacists are not bargaining unit members. This is incorrect—Osco has withdrawn its proposal to remove Head Pharmacists from the bargaining unit. A corrected version of Osco’s proposed Article 11 is below or can be viewed here.
Members with questions should contact Local 727 Osco Business Representative Zach Frankenbach at (847) 696-7500 or Zach@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments
Osco Offers Abysmal Economic Package Despite Claims that Company Can Afford to Pay More, Refuses to Budge on Key Issues—Contract Vote to be Held
09.26.19 — For nearly a month, Osco Drug, Inc., a wholly owned subsidiary of Albertsons, has made negligible movement on its initial comprehensive wage proposal, which contained a wage freeze, two-tier wage system, and proposal to raise pharmacists’ health care costs. When asked directly by the Teamsters Local 727 bargaining committee during the parties’ bargaining session on Monday, September 23, if the Company was unable to afford the Union’s own proposed annual wage raises, Osco denied affordability was an issue and stated that the Company’s top concern was “remaining competitive.”
“Osco pharmacists do far more at the store level than any of our competitors,” said Osco pharmacist and Local 727 bargaining committee member Tom Hagerty. “If Osco wants to recruit the brightest, hardest working pharmacists, then they must treat their employees with respect. That includes compensating pharmacists fairly for their hard work.”
In addition to resubmitting its proposal for a five-year wage freeze, Osco also refused to budge on its proposal to institute a two-tier wage system. Since August, Osco has pushed for massive wage cuts for new hires and repeatedly resubmitted proposals that would lock-in new pharmacists on a lower wage tier for the entire term of the successor collective bargaining agreement. The Company’s proposals do not include any way for new hires to move into the higher wage tier.
“By not giving new hires any opportunity to catch-up to the higher wage rate, Osco seems to be trying to institute a permanent pay cut for new pharmacists,” said Zach Frankenbach, lead business representative for Osco pharmacists. “The Company’s undervaluing of highly skilled pharmacists is an affront to the entire profession.”
In light of Osco’s unwillingness to make movement over issues of vital importance to members, the Local 727 bargaining committee took the bold step of presenting the Company with a last, best, and final offer (LBFO) for a five-year agreement. Not only did the Union’s LBFO make tremendous movement on annual wage raises for all pharmacists, but it also included a two-year freeze on health care premiums and a 3% cap on health care premium increases for the final three years of the proposed agreement.
In response to the Union’s LBFO, Osco representatives presented a comprehensive five-year contract proposal which included a single wage raise of an abysmal 1% in the final year of the agreement, underwhelming lump sum payments of approximately 0.5% in year one and approximately 0.24% in year four of the agreement, and unspecified health care premium increases which are set by management. Additionally, the Company’s most recent offer introduces a lower new hire wage tier, which will not catch-up to the full wage rate by the end of the agreement, and no protections for senior employees when bidding against lessor-paid new hires for staff pharmacy positions.
Though Local 727 demanded an LBFO from the Company, Osco made it clear that their last comprehensive proposal is not their best or final offer.
“Osco’s proposal is a slap in the face to pharmacists—its so-called wage increase does not even keep up with cost of living increases,” said Frankenbach. “The Company said it could afford the Union’s economic package but their latest offer doesn’t come anywhere close. Instead, under Osco’s proposed contract, pharmacists can expect their take-home pay to decrease drastically over the next five years as a result of increased health care premiums and inflation. Our members deserve far more for their hard work and years of dedication.”
As a result of Osco’s intractability, the Local 727 bargaining committee has decided to conduct a ratification vote on the Company’s latest offer. If your address has changed since the last Osco CBA was ratified in 2016, please contact your business representative, Zach Frankenbach, IMMEDIATELY to ensure you receive a ballot.
Local 727 will be sending all eligible Osco pharmacists a copy of Osco’s latest contract offer, a contract summary, and a ballot with voting directions via mail. All ballots are confidential.
THE UNION BARGAINING COMMITTEE RECOMMENDS YOU VOTE “AGAINST CONTRACT”
Members with questions should contact Local 727 Osco Business Representative Zach Frankenbach at (847) 696-7500 or Zach@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments
Osco Offers No Movement on 5-Year Wage Freeze, 2-Tier Wage System, or Floater Schedules in Latest Bargaining Session
09.11.19 — On Monday, September 9, the Teamsters Local 727 bargaining committee and representatives of Osco Drug, Inc., a wholly owned subsidiary of Albertsons, reconvened negotiations. Monday’s bargaining session was the first meeting between the Union and Osco since the parties’ extension agreement expired last week. Though dedicated Osco pharmacists are now working without a contract, Company representatives showed little interest in resolving the many critical issues which the Union’s outstanding proposals have sought to address.
Osco opened the day’s negotiations by making little movement and resubmitting all of the Company’s outstanding contract proposals, including a 5-year wage freeze, 2-tier wage system, and a proposal that allows Osco to raise the cost of health insurance benefits. As they appeared during the parties’ last bargaining session, the Company’s proposals again seemed only aimed at ensuring Osco management would not be required to put forth more than the minimum amount of money and effort.
Despite the minimal movement made by Osco, the Local 727 bargaining committee stood firm and continued to fight for fair wage raises for all pharmacists, improved and transparent bidding procedures, and a ban on payroll neutral flu clinics.
The Union also continued to demand scheduling improvements for Floaters. While Osco representatives claimed there was no way to schedule Floaters’ shifts in advance, the Union bargaining committee did the hard work and proposed alternative solutions. Rather than put in the same effort to find middle ground as Local 727, Osco merely rejected the Union’s proposal and offered no counter proposal.
“Local 727 will not be deterred. The Union bargaining committee will continue to fight until our members receive what is just and fair,” said Zach Frankenbach, Lead Business Representative for Osco pharmacists. “Pharmacists are the backbone of Osco. We demand the Company arrive to our next meeting prepared with contract proposals that show our members and their work the respect they deserve.”
Local 727 has requested future bargaining dates from Osco. The Union will update members as soon as the next bargaining session has been scheduled.
Members with questions should contact Local 727 Osco Business Representative Zach Frankenbach at (847) 696-7500 or Zach@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments
Osco Unwilling to Reward Head Pharmacists with Union-Proposed Personal Days, Flatly Rejects Reasonable Scheduling of Floaters, Presses for 5-Year Wage Freeze
08.28.19 — Negotiations for a new collective bargaining agreement continued between Teamsters Local 727 and Osco Drug, Inc., a wholly owned subsidiary of Albertsons, on Monday, August 19 and Wednesday, August 21. While the Union bargaining committee continued to put forward reasonable contract proposals aimed at resolving many of the pressing issues that impact pharmacists every day, the Company’s proposals seemed only geared towards dividing the bargaining unit and ensuring Osco management will not be required to put forth more than the bare minimum amount of money and effort. These goals appeared most evident as the parties’ bargained over benefits for Head Pharmacists and the scheduling of Floaters.
During the parties’ negotiations last week, Osco representatives presented the Union bargaining committee with a proposal to give Head Pharmacists priority over all other pharmacists during the vacation bidding process. This proposal would disregard the seniority of the majority of the bargaining unit. The Company explained its motivation for this proposal was to incentivize employees to apply for open Head Pharmacist positions.
The Local 727 bargaining committee opposed the proposal and reminded Osco representatives that the scheduling of vacations strictly by seniority is the way to reward all pharmacists for their dedication, loyalty, and years of service to the Company. The Union also reminded the Company that the CBA already allows for Osco to offer incentives to Head Pharmacists. In fact, under the current incentive program Head Pharmacists have the opportunity to earn bonuses for reaching store goals; however, Osco has set those goals at nearly impossible to reach levels and thus minimized the effectiveness of that incentive.
During the parties’ Wednesday bargaining session, the Local 727 bargaining committee proposed that Head Pharmacists receive 2 additional paid personal days as a reward for their hard work.
“Head Pharmacists have additional duties and should be compensated for the added work and hours that come along with those responsibilities,” said Zach Frankenbach, Lead Business Representative for Osco pharmacists.
Osco wasted no time in rejecting the Union’s proposal.
“Osco may act like it cares about Head Pharmacists, but it’s clear from Management’s actions that the Company only values us when it doesn’t cost them anything,” said Osco Head Pharmacist and Local 727 bargaining committee member Melissa Henry. “We will not be bought or bribed. Head Pharmacists are Teamster pharmacists and we will stand with all our Teamster Brothers and Sisters.”
In addition to proposing additional personal days for Head Pharmacists, the Union bargaining committee has also continued to demand new contract language that would permit pharmacists to use a portion of their vacation time in single day increments.
Local 727 also resubmitted its proposal that would provide Floaters with 10 weeks advanced notice of their schedule. Before negotiations began, members of Osco management stated that the Company aimed to assign Floaters’ schedules 6 months in advance; however, during negotiations Osco representatives claimed that there was no way for the Company to guarantee a Floater’s schedule. As such, the Company flatly reject the Union’s proposal.
“I try to be flexible because I understand my schedule is subject to change,” said Osco Floater and Union bargaining committee member Michael Trnka, “but, every once in a while, I need to be able to make a doctor’s appointment. Floaters are not asking for a lot. We’re just asking our Employer to make an effort, and to remember that Floaters are humans that need check-ups too.”
In addition to demanding scheduling improvements for Floaters, the Union bargaining committee also held firm on its proposals that permit a sign to be posted when a pharmacist is on break, demand two 30-minute breaks for pharmacists working 12 hour shifts, improve bidding procedures for open positions, and fair annual wage increases for all pharmacists.
Despite the Union’s good faith bargaining, Osco has made little movement off of its very first pharmacist wage proposal. During both of the parties’ bargaining sessions this week, Company representatives continued to demand a 5-year wage freeze for pharmacists while also raising the cost of health insurance benefits.
Local 727 did score a tremendous victory this week when it secured a tentative agreement that maintains the status quo for 12-hour days over the course of a 5-year contract term. This tentative agreement protects the jobs of part-time pharmacists who would have had their hours reduced or eliminated had the 12-hour day expanded.
“We cannot allow Osco to divide our Brotherhood,” added Frankenbach. “When we stand together, Local 727 has the power to protect Osco pharmacists. We must remain united and continue to fight side-by-side.”
The parties’ next bargaining session is currently scheduled for Monday, September 9. The current contract extension agreement is set to expire the first week of September.
Members with questions should contact Local 727 Osco Business Representative Zach Frankenbach at (847) 696-7500 or Zach@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments.
Osco Continues to Press for the Removal of Head Pharmacists from 727 Bargaining Unit, Union Stands its Ground
08.15.19 — Today, representatives of Osco Drug, Inc., a wholly owned subsidiary of Albertsons, opened the day’s contract negotiations with Teamsters Local 727 by describing the Company and pharmacists as “partners” and emphasizing the importance of Osco continuing to progress in the future. These sentiments were not present, however, in the first wage proposal Osco presented to the Union this afternoon.
The Company’s opening economic proposal included:
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A 5-year wage freeze for all current employees;
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The introduction of a second wage tier with massive pay cuts for new hires;
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The elimination of the overnight premium for new hires; and
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The elimination of bonus units for new hires.
“The Company’s proposal to pay pharmacy students near minimum wage both devalues our profession and discounts the contributions of pharmacists and pharmacy students,” said Laura Lucafo, Osco pharmacist and Local 727 bargaining committee member.
“The Company’s proposal does not keep up with inflation. Osco is essentially asking its hardworking employees—the foundation of its company—to take a pay cut over the next five years,” added Zach Frankenbach, Lead Business Representative for Osco pharmacists. “Management claims it wants Osco to keep progressing in the future, but with this proposal it seems to say it doesn’t want the same for its pharmacists.”
In today’s bargaining session, the Local 727 bargaining committee stood firm and continued to press for rest break, vacation, and scheduling improvements, as well as the elimination of payroll-neutral meetings, maintaining the status quo for 12-hour days, and a more transparent bidding process. Despite Local 727’s good faith efforts to focus the parties’ attention on a small number of important, key non-economic matters in order to advance negotiations, Osco representatives made no significant movement on the Company’s outstanding non-economic proposals.
The parties’ will meet again to continue bargaining on Monday, August 19. Local 727 will continue to update pharmacists as negotiations proceed and the expiration of the parties’ extension agreement approaches.
Members with questions should contact Local 727 Osco Business Representative Zach Frankenbach at (847) 696-7500 or Zach@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments.
Osco Continues to Press for the Removal of Head Pharmacists from 727 Bargaining Unit, Union Stands its Ground
08.06.19 — Negotiations for a successor collective bargaining agreement covering Osco pharmacists continued on June 22, June 29, and August 1 between the Teamsters Local 727 bargaining committee and representatives of Osco Drug, Inc., a wholly owned subsidiary of Albertsons.
During the parties’ recent bargaining sessions, Osco presented the Union with a contract proposal that would permit a sign to be posted when a pharmacist is on a 15-minute break and stipulates that head pharmacists would be required to train pharmacy technicians on rest break procedures. However, Osco tied its proposal to the elimination of head pharmacists from the Local 727 bargaining unit, which the Union flatly rejected. Local 727 stood firm and made it clear that it is unwilling to bargain over the scope of the bargaining unit or consider any reduction in Union jobs.
Local 727 submitted a modified proposal to Osco representatives that requires signs be posted during both 15 and 30-minute breaks, maintains it is the responsibility of the Company to train technicians, and mandates Osco track pharmacists’ hours and rest breaks. Despite the Union’s firm stance on rest break signage, Osco representatives have not yet gone far enough as to offer 30-minute break signs.
Local 727 demanded Osco cease attempting to limit employee rights and instead focus its attention on resolving pressing issues that could affect employee and public safety. During this past Thursday’s bargaining session, Local 727 took the time to create a list of the Union’s top contract proposals in a good faith effort to streamline and focus negotiations on such urgent issues. The Union tied limiting its focus to Osco’s withdrawal of its remaining proposals (excluding wage and benefits), which includes a proposal to expand the number of 12-hour day pharmacies. Osco did not respond to the Union’s proposals during the parties’ last bargaining session, but is expected to do so when Osco and Local 727 next meet.
Though Osco did withdraw some minor proposals, the Company again declined to make any significant movement. As a result of the Company’s continued delays, Local 727 notified Osco that the Union would not be renewing the parties’ extension agreement. The extension agreement will now expire in early September.
“If we’re going to reach an agreement before the deadline Osco must cease dragging its feet. The Union bargaining committee demands that Osco begin bargaining in good faith with Local 727,” said Zach Frankenbach, Local 727 business representative for Osco pharmacists. “Local 727 will continue to fight for the contract provisions our Brothers and Sisters deserve.”
The parties are currently scheduled to resume negotiations on Thursday, August 15.
Members with questions should contact Local 727 Osco Business Representative Zach Frankenbach at (847) 696-7500 or Zach@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments.
Osco’s Intractability Hampers Progress During Negotiations
07.01.19 — Teamsters Local 727 met with Osco Drug, Inc., a wholly owned subsidiary of Albertsons, on Tuesday, June 18 and Friday, June 28 to continue negotiations for a new successor collective bargaining agreement covering all Osco pharmacists. Despite the Union’s good faith efforts to engage Osco representatives in meaningful and productive conversations, the Company’s continued refusal to make any real movement on its outstanding proposals stymied negotiations.
The Local 727 bargaining committee opened the day’s bargaining on June 18 by presenting Osco with a package deal on 12-hour days and pharmacist rest breaks. The package, which represents major movement on the part of the Union, would include Local 727 agreeing to maintain the status quo for 12-hour days only under the conditions that Osco agree to (1) keep a complete and accurate record of pharmacists’ daily rest breaks and hours; (2) provide each pharmacy with a sign to display when a pharmacist is on break; and (3) train technicians on handling interruptions and customers while pharmacists are on break. Despite having already agreed to provide technicians with break-related training in October 2018, Osco management did not immediately respond to the Union’s proposal.
“Osco was given the opportunity to make good on its word and resolve the issues preventing pharmacists from taking uninterrupted breaks—it didn’t follow through on its promises,” said Zach Frankenbach, Local 727 business representative for Osco pharmacists. “If the Company wants to earn back the trust of its employees, agreeing to this very fair package proposal would be a good first step.”
On June 18, Local 727 also resubmitted its proposal to introduce new scheduling procedures that would provide floaters with advance notice of start/end times, work locations, and days off as well as the Union’s proposals to provide part-time pharmacists with paid sick days and update bidding procedures to ensure seniority is strictly followed. The Union bargaining committee emphasized the necessity of these proposals by providing firsthand examples of challenges they and their fellow pharmacists face each day on the job.
Local 727 continued to press for the strict use of seniority to fill open full-time and permanent part-time hours when the parties reconvened negotiations on Friday, June 28. The Union called out Osco for its bidding process’ lack of transparency and for its habit of filling open permanent positions with outside hires.
“There’s no reason for Osco to hire from outside the Company when there are so many pharmacists—employees who have dedicated their lives and careers to Osco—willing to work these positions,” said Union bargaining committee member Tom Hagerty.
On Friday, the Union also resubmitted its proposal to increase the amount of vacation leave pharmacists are permitted to break into single day increments to 2 weeks. Though Local 727 made it clear to Osco management that this issue is extremely important to their hardworking employees, the Company appeared indifferent and offered no movement on their PTO program proposal.
In fact, Osco did not make significant movement on any of their previously presented proposals during either of the parties’ recent bargaining session. Instead, Osco merely resubmitted its ridiculous proposals, including one to reduce benefits for part-time employees and new hires by limiting bereavement leave.
“Pharmacists are fed up with Osco’s feet-dragging,” added Frankenbach. “We could be much farther along in these negotiations, and much closer to reaching a fair agreement, if Osco put the same effort into these negotiations as the Union has. Local 727 has done the hard work—it’s time Osco steps up and shows its dedicated employees the same respect.”
The parties will meet again to continue bargaining on Monday, July 22.
Members with questions should contact Local 727 Osco Business Representative Zach Frankenbach at (847) 696-7500 or Zach@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments.
Osco Flouts Union’s Good Faith Efforts, Insists on Slashing Benefits at Latest Bargaining Session
06.04.19 — The Teamsters Local 727 bargaining committee and Osco Drug, Inc., a wholly owned subsidiary of Albertsons, last met to continue negotiations for a new collective bargaining agreement covering Osco pharmacists on Tuesday, May 21. While the Union arrived prepared and willing to bargain in good faith over the many pressing workplace issues that currently affect Osco pharmacists, management appeared indifferent to the concerns of their employees and seemed unwilling to make any significant movement on their initial contract proposals.
Local 727 opened the day’s bargaining session by withdrawing several proposals in a good faith attempt to propel negotiations forward and focus on key issues. Unlike the Union, Osco management did not make similar movement.
Osco representatives instead merely resubmitted their previous proposals to reduce benefits for part-time employees, including a ridiculous proposal to limit bereavement leave.
“Osco’s actions during negotiations show that management has clearly lost touch with the challenges facing pharmacists,” said Laura Lucafo, Osco pharmacist and Local 727 bargaining committee member.
“We won’t reach a fair agreement anytime soon if Osco does not begin addressing the demands of its employees and bargaining in good faith with the Union,” added Zach Frankenbach, Lead Business Representative for Osco pharmacists.
The Local 727 bargaining committee continues to press for the elimination of 12-hour days, substantial annual wage raises for all pharmacists, increases in paid time off, and rest break improvements.
The parties’ next bargaining session is currently scheduled for Thursday, June 13. Local 727 will continue to update pharmacists as negotiations proceed.
Members with questions should contact Local 727 Osco Business Representative Zach Frankenbach at (847) 696-7500 or Zach@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or additional grievance, or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does not forfeit its right to make any and all supplemental arguments.
Osco Proposes Longer Hours, Lower Pay, and Fewer Union Jobs in Outrageous Opening Proposal
04.29.19 — Teamsters Local 727 and representatives from Osco Drug, Inc. reconvened negotiations for a new collective bargaining agreement covering all pharmacists this past Tuesday, April 23. The parties began negotiations by finalizing a 30-day extension agreement, which includes retroactivity for wage raises back to May 4, the date of expiration of the current contract.
When the parties first met on April 3, the Union bargaining committee opened negotiations by presenting the Company with a complete contract proposal, which included the elimination of 12-hour days, substantial annual wage raises, increases to paid time off, a comprehensive break proposal, as well as improved scheduling and bidding procedures.
During the parties’ latest bargaining session, Osco management presented its initial proposal for a five-year agreement that stands in stark contrast to the Union’s proposal. The Company’s proposal includes the expansion of 12-hour days, the removal of restrictions on the number of 12-hour days the Company can force a new hire to work, and the creation of a lower tier for days off for new hires.
Osco also proposed the replacement of vacation time with a PTO program and presented a proposal to limit bereavement leave by removing “grandparents” from the list of family members pharmacists may take time to mourn. Additionally, the Company proposed the elimination of the phrase “uninterrupted” from the “Meal and Rest Periods” article of the contract which would inevitably lead to shorter rest breaks for overworked pharmacists.
Most outrageously, Osco topped off its list of abysmal proposals by proposing the elimination of head pharmacists from the bargaining unit.
“Forcing already overworked pharmacists to work longer shifts with less breaks not only threatens pharmacists’ health, but poses a real threat to public safety,” said Zach Frankenbach, Business Representative for Osco pharmacists. “This Union will not stand for such heinous mistreatment of our members. We demand Osco return to the bargaining table prepared with proposals that better protect pharmacists and that recognize the hard work of its longtime employees.”
The parties will reconvene negotiations on May 21. The Union will continue to update members as bargaining proceeds.
Members with questions should contact Local 727 Osco Business Representative Zach Frankenbach at (847) 696-7500 or Zach@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or additional grievance. The union does not forfeit its right to make any and all supplemental arguments.
Local 727 Opens Osco CBA Negotiations with Comprehensive Contract Proposal
04.15.19 — Teamsters Local 727 and Osco Drug, Inc. opened negotiations earlier this month for a new collective bargaining agreement covering all Osco pharmacists.
During the parties’ first bargaining session on Wednesday, April 3, the Local 727 bargaining committee kicked off negotiations by presenting Osco representatives with a comprehensive contract proposal. Some of the Union’s top proposals include substantial annual wage raises, an increase in paid time off, the elimination of 12-hour days, a guarantee of 20 hours per week for part-time employees, and updates to bidding procedures that will ensure seniority is strictly followed and part-time employees have an opportunity to bid on open full-time positions before outside hires. Additionally, the Union has proposed new scheduling procedures which would require floater schedules (including days off, start/end times, and locations) be determined 6 months in advance.
Local 727 has also proposed changes to the CBA that will ensure pharmacists are able to safely perform their professional duties. These proposed changes include the mandatory scheduling of pharmacy technicians during all operating hours, the limiting of non-pharmacy duties, and the ability to close pharmacies during a pharmacists’ lunch/dinner break when no other pharmacist is present.
“Wednesday was a productive start to negotiations,” said Zach Frankenbach, business representative for Local 727 Osco pharmacists. “While there remain many challenging issues left to tackle before we can reach an agreement, the Union bargaining committee is looking forward to obtaining the best possible CBA for all Osco members.”
Osco representatives are expected to arrive to the parties’ next bargaining session on Tuesday, April 23, with the Company’s own contract proposals.
The current Osco CBA is set to expire on May 4, 2019.
Members with questions should contact Local 727 Osco Business Representative Zach Frankenbach at (847) 696-7500 or Zach@TeamstersLocal727.org.
Nothing in this article should be read as the union’s waiver of any legal argument, position or additional grievance. The union does not forfeit its right to make any and all supplemental arguments.