Osco Deliberately Misleads Union Bargaining Committee during COVID-19 Vaccination Bargaining
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Business Agent Sean McGough
Phone: (847) 696-7500
E-mail: Sean@TeamstersLocal727.org
01-12-21 Teamsters Local 727 and Osco Drug, Inc., a wholly owned subsidiary of Albertsons, met on Thursday, January 7th to bargain over administration of the COVID-19 vaccines and met again on Friday, January 8th to resume contract bargaining in a federally mediated session. During both meetings last week, Osco management became indignant over serious questions regarding the company’s plan to manage the novel coronavirus vaccinations and, perhaps even worse, were downright flippant when asked to address the crucial issues that the Union bargaining committee has consistently expressed throughout contract negotiations.
With phase 1a of the national vaccination effort underway and 1b, which includes roughly 250,000,000 Americans on the horizon, bargaining on Thursday, January 7th was dedicated solely to the COVID-19 vaccines. The Union bargaining committee opened the meeting by clearly articulating the importance of each proposal to Osco and how each one directly relates to patient and pharmacists’ safety, staffing, workflow efficiencies, proper recognition, and fairness. The Union bargaining committee showed extreme concern about appropriate staffing levels as pharmacists have reported an unprecedented increase in calls inquiring about the vaccination. However, almost every Union proposal, including the staffing proposal, was met by Osco with a ‘hard no’ or a ‘we don’t know.’ When questioned further on their staffing plan, Osco ultimately admitted that no staffing formula exists, and they will provide staffing as they see fit and adjust accordingly. “This is like watching a train wreck in slow motion,” Said John Coli, Jr., Secretary Treasurer of Teamsters Local 727. “Osco is set to play a major role in the vaccination effort in the Chicagoland area and their plan is to essentially wing it. I worry for the safety not only of our frontline, essential Teamster pharmacists but also for our community as they rely on companies like Osco for the vaccine.”
Throughout the day, Osco was insistent that they were not withholding any information and maintained they were bargaining in good faith. However, as Osco claimed transparency at the table, the pharmacists on the Union bargaining committee received an email from Osco with the subject line ‘Technician Immunization Administration Training,’ which caused the committee to confront management at the table. The Union inquired why Osco did not disclose that it began to implement technician training while discussing staffing issues. At first, the Osco bargaining committee claimed they did not know the email was sent out but pivoted quickly and insisted that with recent changes to Illinois Pharmacy Practice Act, technicians are now legally allowed to administer vaccines. Instead of acknowledging they made a mistake by not discussing their plans with the Union first, they doubled down on defending their actions by stating they had previously proposed this change to the Union last month.
“I don’t think I have ever been more disappointed in Osco than I am today,” said John Coli, Jr. “Osco’s attempt to conceal and then steamroll their true plan shows a complete lack of respect to the collective bargaining process and utter disregard for their Teamster pharmacists. How can we build a relationship based on trust when every step of the way Osco has shown that they are untrustworthy? Whether it’s because they refuse to provide information on mis-filled prescription discipline or because of this underhanded plan with the technicians, they make it impossible to believe them. Our pharmacists are overworked and may welcome the additional support, but Osco has a duty to bargain with the Union before unilaterally implementing any COVID-19 vaccination policies or procedures. Teamsters Local 727 must ensure that our pharmacists are protected.”
Similarly, contract bargaining the following day was not particularly productive due to Osco’s refusal to discuss the issues that truly matter to pharmacists. Once again, 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. Once again, Osco flat out rejected the Union’s proposals. Instead, Osco proposed an increase to the part-time (20 or more hours per week) lump sums to $350 in year 3 and an increase to the part-time (less than 20 hours per week) lump sums to $375 in year 2. The Union bargaining committee responded in kind. The day concluded with Osco once again making minimal movement on part-time (less than 20 hours per week) lumps sums to $350 upon ratification.
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.
Osco Continues Down Same Tired Road During October 15 Bargaining Session
10.22.20 - Teamsters Local 727 and Osco Drug, Inc., a wholly owned subsidiary of Albertsons, met on Thursday, October 15th and resumed bargaining in a federally mediated session. Minimal movement was made around wages and scheduling. Osco continued down the same tired road by packaging proposals with a drastically reduced new hire rate, expanding 12-hour shift stores to another 50 stores, and increasing health care contribution costs as the coronavirus pandemic hits its second wave. Adding insult to injury, Osco continues to ask pharmacists to make major concessions while the Company experiences soaring profits. The Union bargaining committee stood firm with its proposals which are based on security, fairness, and safety.
The Union bargaining committee started off the day by reintroducing a comprehensive proposal to forgo the new hire rate in exchange for the Union withdrawing its proposals surrounding non-economic protections for current pharmacists. Once again, Osco flat out rejected the Union’s proposals. Osco’s first and only proposal of the day did not come close to addressing the major concerns of the Union bargaining committee. In typical fashion, Osco packaged a proposal with meager increases to the lump sums upon ratification. The Company’s package also included language regarding scheduling for undistributed pharmacists. The proposal would allow for floater pharmacists to make 7 requests per year for an off day during the week, not to exceed 5 days approved. This language was derived from a proposal the Union had previously submitted and would codify a practice the company claims it is doing already. These “concessions” were packaged with the same take backs the Union has fended off for more than a dozen sessions: 12-hour store expansion, health care increases, and a lower new hire rate.
The Union agreed again to the lump sum increases for full time pharmacists upon ratification and agreed to the slight modifications to the floater pharmacists scheduling language. The Teamsters Local 727 bargaining committee resubmitted the mutual withdrawal package along with modifications to Articles 3.1 which safeguards against a 12-hour shift expansion. The session ended with the ball in Osco’s court.
At a caucus during negotiations, the Union submitted an information request to Osco regarding COVID-19 exposure at a union store pharmacy. Concerned for the safety of pharmacists and the public, the Union demanded, in detail, what remedial actions the Company took to mitigate exposure, sanitize the pharmacy, protect pharmacists, and utilize contact tracing beyond the pharmacy. As the coronavirus pandemic has killed over 200,000 people in the United States and Teamsters Local 727 pharmacists are on the frontline, the Union requested that the Company produce the information within 7 days. Due to the gravity of the situation, this is not an unreasonable deadline. Instead of agreeing to meet the deadline, Osco informed the Union that it may not have the information on time. At the time of publishing this story, the Union has yet to receive any item of the information request.
“Osco’s response to the Union’s information request is callous,” said John Coli Jr., Secretary Treasurer of Teamsters Local 727. “This is critical information, and the Company should have it readily available at their fingertips. What Osco management does to protect their frontline, essential pharmacists during this worldwide health pandemic could be the difference between life and death. Whether it’s at the bargaining table, in the pharmacies, or with simple requests for information, there is no transparency. It’s one thing to withhold information at the bargaining table because it makes them feel big, it’s another not to provide information about health and safety measures. It’s not only stupid, it’s potentially life-threatening. Nevertheless, we will continue on negotiating in good faith, eagerly awaiting Osco to join us.”
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.
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.
Osco Continues Concessionary and Regressive Bargaining, Pushes Profits over Safety While Historic Sales Skyrocket
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.
Osco Made Little Movement in Negotiations While Albertsons Net Income Skyrockets Nearly 1,100% in the First Quarter
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;
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Prevents new hires from bidding on staff pharmacist positions during the term of the agreement;
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Only allow new hires to be selected for a head pharmacist position if no current employee bids;
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Prevents new hires from eliminating regularly scheduled part-time employees’ hours; and
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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.
Sneeze Guards To Be Installed at Osco Pharmacies Covered By 727 Contract
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.