Sarah Fayyaz LGLS/BLAW 301 December 10, 2003
KROGER STRIKES
To strike is to refuse to continue to work until certain conditions of employment are met. These conditions
can consist of a number of things such as retirement benefits, wages, working conditions, vacation, health insurance benefits, sick leave, and unfair policies. strike is implemented by a two-thirds majority vote of union members. Strikes do not end until an agreement is A
reached between the company and the workers’ representatives. This could be as little as a few days or
as long as several months. In the last few years, health insurance costs have been rising. Those employers that do provide health
insurance benefits to its employees have to pay higher and higher costs to insurance companies. The more money a
company pays for health insurance, the less amount of profit is brought in. If there is less profit, then the
company cannot afford to stay open unless it begins to pass a larger portion of the premiums on to the employees. If
the costs are not passed on to the employees, then the costs must be passed on to consumers. The last thing a
company wants to do is increase costs to consumers because that leads to an inability to compete as well in the market. Kroger employees are fighting the proposed increase in the health care deductions from their paychecks. strike began on October 13, 2003, in many states. The Forty-
four stores in Kentucky, Ohio, and West Virginia have closed temporarily; approximately 3400 workers are affected. Negotiations have been off and on. Talks have
been called off numerous times when impasses have been reached. The union refuses to accept the contract proposed
by Kroger. Kroger spokespeople say that Kroger cannot afford to continue to pay so much in health benefits without more contributions by the workers. The company does not want to
increase prices because profits have been low recently. Not increasing prices and not having more employee contributions may cause Kroger to make no profit or operate in a loss. The Kroger proposal is this: • • Eight percent increase for what workers pay for benefits Hourly pay raises this year and 2005
• •
Lump sum payments of $300-$500 in 2004 and 2006 Higher number of full-time employees The only agreement that the union and Kroger has reached
is that both sides “plan to switch workers’ health care to Blue Cross Blue Shield” (Wilson, 2003). Because workers have been on strike for so long, they have filed for unemployment benefits. West Virginia courts Ohio
ruled that workers are eligible for unemployment.
courts have ruled that workers are not eligible for unemployment since they chose to go on strike. decisions have been appealed. yet. Both
Kentucky has not decided
Workers at a few open Kroger stores in the area have
formed sympathy picket lines. There is no incentive for Kroger to give in to the union’s demands of Kroger paying even more of the health care costs because Kroger has already taken a large loss from throwing away or donating perishable food items. Companies other than Kroger have been adversely affected by the strike. Local suppliers of “soft drinks,
beer, wine, snack foods, bread and other products” are losing out (Wave 3 TV, 2003). Drivers for some companies
are losing money because Kroger was on their route, for which they received commission on every case sold. Small
local companies have had to lessen production hours so that there is not an overproduction. Consumers who prefer the smaller size of Kroger compared to Wal-Mart are forced to deal with larger crowds of people shopping for not only groceries, but clothes, toys, and electronics. Whenever Kroger might reopen, some
loyal customers may go back, but if they see that prices have increased more, Kroger could potentially lose customers to grocery stores with lower prices. If a contract is approved, it could take almost two weeks for stores to reopen, but it is possible that not all stores would reopen. Stores that brought in a lower profit
than others might remain closed. People that go on strike, in some cases, cause their own loss of job because the company might close the doors forever rather than bargain. Even if benefits are not the
best or working conditions are poor, workers should still work. If a person is working, then the person is able to As soon as a person
afford personal and family expenses.
goes on strike, there is that much less money to use for living expenses. Even if an employment contract runs out
and there is a union representing the workers, workers should do their best to not strike. A strike hurts not
only the workers of that company—it hurts workers of companies dependent on the one striking.
REFERENCES Grocery strike supersizes. (2003, October 14). Retrieved
on December 8, 2003 from http://www.cbsnews.com/ stories/2003/10/11/national/main577628.shtml Kroger, union leaders reach tentative agreement; vote set for Thursday. (2003, December 9). Retrieved on
December 10, 2003, from http://www.wave3.com/Global/ story.asp?S=1557355 The Kroger strike: Talks underway. (2003, October 28).
Retrieved on December 8, 2003 from http://www.msnbc. com/local/wsaz/M335186.asp?OLA=aed9s Lingering Kroger strike affects local distributors. October 31). (2003,
Retrieved on December 10, 2003, from
http://www.wave3.com/Global/story.asp?S=1506257 Wilson, P. (2003, November 28). Lost profits a small
factor in Kroger strike.
Retrieved on December 8,
2003 from http://www.wvgazette.com/section/News/ 200311281 Wilson, P. (2003, December 4). Kroger/union talks might
resume Sunday.
Retrieved on December 8, 2003 from
http://www.wvgazette.com/section/News/2003120431