It’s very interesting how the perspective of St. Louis Post-Dispatch writer Thomas Lee, who’s been covering this story, has shifted. The more he learns, and tells his readers, the better the employers’ deal looks. (No criticism of him intended; he’s done a very nice job, on the whole, and it’s to his credit that he’s had the last two follow-up stories, on what is no longer “new” news.)
Here’s what he tells us today, in a story entitled “Groceries say contract makes them more competitive”:
“For all the economic and public relations damage grocery workers caused their employers during the 25-day strike and lockout, the area’s three largest supermarket chains won some important concessions on work rules that executives say will pay off.”
“Such efficiencies will most likely lead to reduced hours for workers and fewer employees over time.”
Rule changes include:
Vendor stocking – “Outside companies can directly deliver and stock products in the stores. Before, these vendors delivered products to stores, then Local 655 members placed the items on shelves. Some vendors have been able to do such work since 1991, but the contract now includes greeting cards, beer, wine, liquor, teas, dips and all products delivered by chip and snack vendors. Vendors can also remove outdated products, rotate perishables and clean shelves.”
“[T]he company cannot reduce the hours of union workers who are directly affected by the change. Instead, the companies will move such workers to other jobs. But, the total pool of hours available to all employees ultimately will be less.”
“Bob Kelley, president of Local 655, acknowledges many members are upset by the changes. But in the end, the union had to compromise to protect wages and benefits, he said. ‘Vendor stocking is a big, big issue with our members,’ Kelley said. ‘They still weren’t thrilled about it. I would never minimize their concerns, but the primary, ultimate issues are money and health benefits.’ ”
This is the fundamental deal with the devil that is implicit or explicit in every union contract which improves wages and benefits beyond market price levels: there are better jobs, but fewer of them. As union workers are laid off, they get hired in the nonunion sector, which grows, and join the ranks of those paid at market level. And so claims that unions improve wages and benefits have a major dark side (besides requiring strikes and often violence to achieve).
Vacation scheduling: “The supermarkets can now block out three weeks of the year when union workers cannot take vacations, a concession the chains have sought for years. Executives say those three weeks will cover Easter, Thanksgiving and Christmas.”
Unfortunately, we’re a 24×7x365 day society, and unions need to recognize that.
Technology: “The contract includes new language that calls for companies and union officials to bargain over the effects of new technology. The contract notes the company could reduce hours, reassign or lay off workers. In the event of layoffs, employees, except for courtesy clerks (baggers), would be eligible for severance pay. Supermarket executives say this . . . is a direct result of their decision to introduce self-checkout stations since 2001.”
You can definitely expect to see a mix of self-checkout and regular lanes approaching 50-50 within 5 years, says my crystal ball. I enjoy doing my own. (Plus it gives me an opportunity to “go on strike” against the checkers, now that they are back.)
Managers: “Normally, Schnucks and Dierbergs employ co-managers to help run most of their stores. Under the new contract, these co-managers will no longer be union members but will still be allowed to perform union work when needed. . . . [T]hese managers now can help unload a truck or work the checkout lanes if union workers are busy.”
Limitations on performance of unit work by supervisors are one of the most productivity-robbing terms found in most union contracts.
“Shop ‘n Save laid off most of its bakery clerks after the strike ended Oct. 31, but Gebhard said the move was not strike-related. The company reached a deal with Krispy Kreme doughnuts in February but delayed the contract until after the chain concluded negotiations with Local 655, she said.”
Outsourcing is a major way employers erode the “hard-won union wages and benefits.” But it happens because of that same deal with the devil. The unions would rather fight for above-market wages and benefits than for strong protections against subcontracting (though they often go for these too, at least initially). So it’s fewer workers making more. And everyone loves Krispy Kremes, so it’s a smart move.
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