Los Angeles Transit Employees, Grocery Employees in Five States Strike Over Health Benefit Issues
As many as 9,000 members of the Amalgamated Transit Union employed at the Los Angeles Metropolitan Transit Authority, the nation's third-largest public transit system, on Tuesday began a strike that will continue indefinitely until union and company officials reach an agreement on employee health benefits, the AP/Hartford Courant reports. The dispute focuses on the Amalgamated Transit health fund, which is administered by the union and covers health care costs for about 2,000 MTA employees and retirees. The MTA contributes about $17 million per year to the fund, but union officials have sought a higher contribution to offset increased health care costs. Neil Silver, president of Amalgamated Transit, said that the MTA has not increased contributions to the fund for more than 10 years and that the union has had to spend reserve funds to meet increased health care costs. MTA officials maintain that the union has mismanaged the fund, based on an independent audit that found millions of dollars in waste. MTA CEO Roger Snoble said, "Union leaders basically ran the trust fund into the ground and now they want the taxpayers to bail them out." Under the latest contract proposed by MTA, the authority would contribute more to the fund to prevent bankruptcy in exchange for temporary control of the fund (Veiga, AP/Hartford Courant, 10/14).
Grocery Employees in Five States Begin Strike
About 3,300 members of the United Food and Commercial Workers at 44 Kroger grocery stores in Kentucky, Ohio and West Virginia began a strike at midnight Monday after union and company officials failed to reach agreement on employee health benefits, the AP/Fort Worth Star-Telegram reports. Kroger officials have proposed to increase company contributions to the union-managed health care fund by 8%, or about $9 million; union officials said that an independent actuary report found that the fund requires a $29 million contribution from the company. About 10,000 UFCW members employed at three grocery store chains in Missouri also have begun a strike over employee health benefits (McCreary, AP/Fort Worth Star-Telegram, 10/14). In addition, about 70,000 UFCW members employed by grocery store chains Albertsons, Kroger-owned Ralphs and Pavilions and Safeway-owned Vons at 859 locations in Southern California on Saturday began a strike over employee health benefits and wage increases, the New York Times reports (Broder, New York Times, 10/14). In California, the companies have sought a wage freeze and higher employee contributions for health insurance (Fulmer et al., Los Angeles Times, 10/14). The three companies have asked union members to pay $5 per week for single health insurance and $10 to $15 per week for family coverage, according to Vons spokesperson Sandra Calderon. Company officials have cited health care cost increases of more than 50% over the four years of the past contract. However, California union officials said the proposal would shift $1 billion in health care costs to members (Fineman, Bloomberg/Philadelphia Inquirer, 10/14).
Role of Health Benefits in Contract Negotiations Examined
Several newspapers have recently published feature articles that examine the issue of health benefits in contract negotiations between unions and companies. Summaries of the articles appear below.
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Investor's Business Daily: IBD on Tuesday examined the debate over health care costs, which is "poisoning labor talks" in Southern California (Lau, Investor's Business Daily, 10/14).
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Los Angeles Daily News: The Daily News reports that the increased cost of health benefits has prompted a number of disputes between unions and companies. According to the Daily News, "nearly every worker, business and government agency will face problems with health care expenses in the next few years" (Pondel/Mascaro, Los Angeles Daily News, 10/14).
- Los Angeles Times: The Times reports that efforts by companies to reduce health benefits for employees have "become the top issue in labor contract talks, setting off a wave of strikes and other job actions that are likely escalate as health insurance costs continue to balloon" (Cleeland/Dickerson, Los Angeles Times, 10/14).
