The union representing 17,000 grocery workers in the Seattle area calls the companies' latest proposal unacceptable and says it will start lobbying the community today to support workers.
Members of the United Food and Commercial Workers (UFCW) Local 1105 plan to ask consumers to sign pledges not to shop at the grocery stores involved in the contract dispute if the chains refuse to provide affordable health-care coverage.
"Customers are going to show their overwhelming support," said Jill Cashen, spokeswoman for the UFCW. "They are going to send a message to the companies that they are not going to stand by and let financially stable companies destroy good jobs in our community."
The union argues that the current proposal will raise rates so much that workers will have to forgo medical coverage and rely on state coverage.
Grocers say they have to cut benefits to remain competitive, but they believe their latest proposal still offers employees adequate health-care coverage.
Under the current contract, established three years ago, grocers pay 100 percent of employees' medical-insurance premiums. But in the past three years, they say, health-care costs have risen by 73 percent, so they need employees to share the cost.
The union and negotiators for Albertsons, Safeway and Kroger, which owns QFC and Fred Meyer, are scheduled to meet again June 24 and 25. The current contract, extended twice since talks began in April, is set to expire June 25.
The union has proposed that employees pay $3 a week for individual coverage and $10 a week for family coverage in addition to co-payments and deductibles.
The grocers say they are willing to accept that provision for current employees but want new employees to pay a larger share, spokeswoman Melinda Merrill said.
Employers would agree to pay 80 percent of insurance premiums for existing employees and 70 percent for anyone hired after the new contract becomes effective.
The union also says a drop in employer contributions to the trust that pays for employees' health-care costs would cause the trust to run short and force employees to pay even more later.
Merrill said a consultant hired by the grocers determined that the employers' proposed contributions to the trust would cover employees' health-care costs. The grocers are waiting for the union to review that information.
Another idea on the table is to change the eligibility for benefits. Currently, employees who work at least 60 hours a month receive individual benefits, and those who work 80 hours a month receive family benefits after three months on the job.
The employers have suggested requiring one year of employment at 60 hours a month for individual benefits and two-and-a-half years averaging 80 hours a month to get family benefits.
The grocers' proposal, Cashen said, is "totally unacceptable" and would reduce worker wages while raising health-care costs.
"That proposal would effectively eliminate health care for current and future employees," she said.
The union figures current employees could end up paying $500 a month for the same benefits they have now for free.
The union believes the companies are profitable enough to cover workers' health-care costs as they do now.
Grocers argue that it is unreasonable for them to have to cover the full cost when many businesses pay only half the cost.
"These are profitable companies, but you have to practice good business practices to stay profitable," Merrill said.
Talks ending June 25 could result in another extension of the current contract until the next round of talks, set for July 6 and 7. Workers could opt to strike.
The outcome of this contract dispute could influence talks for 10,000 to 15,000 other grocery workers in Western Washington whose contracts are up later this year, Merrill said.