International Longshore and Warehouse Union participants in the Bellingham, WA action show their support for Rite Aid workers during the National Day of Action in December. Another national mobilization is planned around Valentine’s Day.
Hundreds of Rite Aid workers at the company’s giant Southwestern Distribution Center in Lancaster voted on Friday February 4th to send management a loud and clear message. By a 98% margin, workers rejected a company contract proposal that flopped in the shop because it was loaded with lousy terms, including:
• Overcharging workers for health insurance up to 28 times over the increases being charged by health care providers.
• Offering only a skimpy 25 cent wage increase.
• Allowing the company to outsource jobs at any time.
Workers are formally notifying the company of the overwhelming turnout and rejection results, and expect management to respond by negotiating a more realistic contract proposal.
Old problems are sparking unity and determination
Frustration inside the Distribution Center is growing because the company has failed to address other longstanding concerns, including compensation that is long overdue to almost 600 employees.
The problem started back in 2008 when Rite Aid violated the rights of 550 employees by sending them home early. Another 46 workers were illegally laid-off. Rite Aid was charged with violating federal labor laws by the National Labor Relations Board, and the company eventually promised to pay workers a total of $830,000 – but workers have yet to see a penny of the money that they’re owed.
It’s hard for workers to understand why Rite Aid is refusing to pay them while CEO John Standley’s pay was recently raised from $2.5 to $4.5 million.
Anger over Rite Aid’s refusal to pay workers for this settlement has been simmering in the Distribution Center for years. But Rite Aid’s decision to boost the CEO’s pay – while workers can’t collect on their debts that the company promised to pay years ago – seems to be reaching a boiling point.