April 26, 2004

Kroger Risks Revenue Hemorrhage With Attack On Worker Health Benefits

Workers In Houston, Cincinnati, Louisville, Las Vegas, Northern California, Denver, Seattle And Detroit Mobilize For Fight To Save Health Care

Kroger stockholders were recently stunned when the company forked over more than a $100 million to the supermarket operator’s leading competitors as a payoff from the more than 4 month long Southern California grocery strike. Waging war on workers’ health benefits doesn’t come cheaply, and the nation’s largest supermarket chain had to pay the bill after it agreed to cover its competitor’s losses when it joined with Safeway and Albertsons to take on 70,000 Southern California members of the United Food and Commercial Workers Union (UFCW) in a fight over affordable health care.

Kroger did not limit its revenue loss to California. It also sent workers into the streets and its customers off to its competitors when it forced a strike over health benefits in West Virginia last year. Now, Kroger is risking a revenue hemorrhage as its short-sighted, benefit-busting demands could send tens of thousands of the company’s workers into the streets from Houston to Seattle, and from Cincinnati to Denver. The majority of Kroger’s revenue stream could dry up if the company fails to reach agreements that maintain affordable health care.

“”Kroger has consistently underestimated workers’ resolve in the fight for affordable health care. For the company health care benefits are a matter of dollars and cents, for workers health care benefits are a matter of life and death,”” said UFCW International Collective Bargaining Director Pat O’Neill.

In a nationwide effort, the UFCW International is systematically laying the groundwork in preparation for the possibility of multi-city strikes. From picket signs to community outreach, coordinated programs are being planned to mobilize support for affordable health care, as well as to assist the workers forced to strike to keep their health care.

While the details vary from city to city, the thrust of the company’s attack is to effectively eliminate affordable health care in the future. Houston is currently the hot spot for a potential strike. Company demands there would impose costs that would push health care out of reach for many workers, and could leave substantial number of workers without any coverage at all.

“”Kroger needs to make a commitment to maintaining affordable benefits. The workers have made record profits for the company. Some of those profits now should be used to maintain the workers’ benefits. Attempts to eliminate affordable health care will only lead to the elimination of profits, customers and market share. Workers will negotiate in good faith to keep the stores open and the customers served, but workers will fight for health care,”” stated O’Neill.