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;
Prevents new hires from bidding on staff pharmacist positions during the term of the agreement;
Only allow new hires to be selected for a head pharmacist position if no current employee bids;
Prevents new hires from eliminating regularly scheduled part-time employees’ hours; and
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.
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.
For access to the Osco Part-Time Database, contact Sean McGough to receive a password.
Business Agent Sean McGough
Phone: (847) 696-7500
E-mail: Sean@TeamstersLocal727.org
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.
Teamsters Local 727 represents hundreds of pharmacists at more than 130 Osco locations throughout the Chicago area.
CLICK BELOW for an interactive map of all Teamster-represented pharmacy locations in the region, including directions to and from individual stores or specific addresses.
Questions?
Contact your agent.
Teamsters Osco Business Agent:
Sean McGough
Phone: (847) 696-7500
E-mail: Sean@TeamstersLocal727.org
