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Kroger Employees Ratify New Contract

  • 10-28-2004
CINCINNATI (AP) -- Members of the union representing about 8,500 Kroger Co. employees in three states on Wednesday ratified a three-year contract.þþThe union said it was ratified by 68 percent of those voting, but declined to say how many votes were cast.þþ``Kroger should not kid itself about the results of today's vote,'' Lennie Wyatt, president of United Food and Commercial Workers Union Local 1099, said in a statement late Wednesday after all-day voting. ``This contract was ratified for one reason and one reason only -- there simply was no workable alternative at this time. In a down economy and during a national health care crisis, a strike seemed a worse alternative.''þþKroger spokesman Gary Rhodes said the ratification was ``great news.''þþ``We believe this is a balanced contract that recognizes the competitive challenges that we face in Cincinnati, while providing our associates with good wages and quality health care benefits.''þþBoth Rhodes and union spokesman John Marrone said that employees would begin contributing toward their monthly health care premiums beginning Jan. 1. Single employees will contribute $5 a week, employees with children will contribute $10 a week and employees with spouses or families will contribute $15 a week.þþThe union has said that the agreement also included pay increases and a ratification bonus, but Marrone declined to release additional details of the contract Wednesday night.þþAbout 8,500 cashiers, grocery baggers and clerks in meat, produce and delicatessen departments at 70 stores in the Cincinnati area, northern Kentucky and southeastern Indiana are covered by the contract. Cincinnati-based Kroger is among the nation's largest supermarket companies with operations in 32 states.þþThe previous five-year contract expired Oct. 9, but both sides agreed to extend the deal as they resolved issues of wages, pension and health care coverage.þþUnion members had voted to authorize a strike if necessary to prod the company's negotiators, although no work stoppage occurred.þþKroger said the contract balanced better pay and benefits with the company's need to hold the line on labor costs as it meets stiff competition from nonunion Wal-Mart Stores Inc., and other mass-merchandising and discount retailers.þþ

Source: NY Times