Union: Grocers Threaten Health Fund

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The union representing Southern California grocery workers accused three major markets Wednesday of proposing cuts in employer contributions that would bankrupt a health care fund that buys employee coverage, a claim the markets rejected, the Los Angeles Daily News reports.


“There is no way they are going to bankrupt the trust fund,” said Adena Tessler, a spokeswoman for Albertsons, Ralphs and Vons.


The unions broke off contract talks earlier this month because of the proposal and are now asking the markets to take responsibility if the reduced contributions end up bankrupting the fund.


Union leaders think the proposed reduction will force workers to either pay higher premiums or accept reduced coverage.


United Food and Commercial Workers says the chains want to cut their contributions by almost 50percent, to $80 per week from $152 per week for each full-time worker.


The actual cost of health care coverage for employees, including dependents, is equivalent to about $2.95 per hour, or about $40million a month for almost 70,000 union workers in Southern California, said Rick Icaza, president of UFCW Local 770.


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