Union Contract to Pump Millions into Local Economy

FORT WAYNE, Ind.--(EON: Enhanced Online News)--Fort Wayne area Kroger store workers last night overwhelmingly ratified a new four-year contract that will pump millions of dollars into the local economy. Workers won wage increases, expanded promotional opportunities with new upgraded job classifications and affordable health care with no cost increase for employees.

“We are looking to the future. Retail jobs are replacing manufacturing jobs. We are committed to making retail jobs the good jobs of the 21st century. Our new contract points the way to a better future: decent pay, advancement opportunity and family benefits”

"The UFCW contract with Kroger will give Fort Wayne more good jobs. Wage increases will put more money into the local economy to stimulate even more job growth and affordable benefits will give families more economic security. Fort Wayne-area consumers and workers have made Kroger profitable. The new contract will make sure a fair share of the profit stays in our community in the form of decent paychecks and benefits," said Joe Chorpenning, president of United Food and Commercial Workers (UFCW) Local 700.

The contract covers approximately 2,400 workers and:

Secures current health benefits with no cost increase to employees;

Protects worker pensions with a 25 to 35 percent increase in the employer contribution;

Expands advancement opportunities with new positions at higher pay grades; and

Increases current top rates ranging from 30 cents to 1 dollar an hour, as well as provides bonuses for various job categories.

Maintaining current benefit levels without shifting increasing costs to workers was key to the contract settlement. According to Chorpenning, "Union-negotiated health care plans are better able to manage costs and maintain benefits. Keeping employee costs from rising under the terms of the new contract is a major victory for working families."

The Kroger Company, one the largest retail food operations in the nation, has been expanding in Indiana. With its union workforce, Kroger has increased its revenue and profitability while offering consumers competitive prices and superior service. The union anticipates further expansion with the addition of Kroger Marketplaces, a superstore format, in the Fort Wayne area. The new contract provides for new upgraded job classifications for the new stores.

"We are looking to the future. Retail jobs are replacing manufacturing jobs. We are committed to making retail jobs the good jobs of the 21st century. Our new contract points the way to a better future: decent pay, advancement opportunity and family benefits," said Chorpenning.

UFCW Local 700 represents 13,000 members and has contracts with Kroger, other retail food stores and food processing plants across Indiana.

May 20, 2011 11:29 AM Eastern Daylight Time