Employer Proposal	Effect of proposal
Article 1 – Agreement does not apply to new stores in areas where unionized market share is less than 25%.	Employers will open non-union stores, destroying our future bargaining strength.
Article 1(B)(13) – Unlimited use of vendors, brokers, salesmen etc.	Further elimination of stocking work, TOTAL EROSION OF CLERK’S WORK.
Article 1(B)(14) – Add additional management exclusion in all stores	Elimination of some bargaining unit work.
Article 1(F)(1) – Allow incidental purchases of 5 items or less at cash registers outside of primary checkstand area. (Pharmacy, service deli, Starbucks etc.)	Loss of Food Clerks work and hours. The GM Departments will not be paid food rate.
Article 1(F)(3) – Clerk’s Helpers can perform periodic overall mopping and cleaning the shelves. (Clerk’s Helpers can only remove and replace merchandise necessary to clean shelf – no stocking)	Minor expansion of Clerk Helper duties.
Article 5(A)(1) – With the exception of Meatcutters – 16 weeks to obtain full-time status must be worked in single store each week or with knowledge of manager or District Manager	Clarification of requirement to obtain full-time status.
Article 5(J) – Allow eight hour shifts within ten hour period for part-time employees on a voluntary basis.	Beginning of split-shifts. Least senior employee could get more hours.
Article 5 (U) Work in Higher Class – Remove restrictions on General Merchandise Clerks working in higher classification and allow unlimited, unrestricted use of General Merchandise Clerks working in higher classification.	Will result in the reduction of Food Clerk positions. Current Food Clerks’ hours will be given to GM Clerks.
Article 6(B) Night Premiums – shorten hours of night premium to 10:00 p.m. through 6:00 a.m.	Reduction of pay for work performed between 6:00 p.m. and 10:00 p.m.
Article 6(B) Sunday Premiums – Freeze Sunday premium for current employees based upon wage rates in effect as of 10/5/03.	Elimination of time and one half on Sunday.
Article 6(J) Clerks Helper Working as Apprentice – Double the number of Clerks Helper hours that can be scheduled to perform Clerk’s work. Permit Clerk’s Helpers to work as Clerks on Sundays and holidays. Drastically reduce penalty for violation of this provision.	Will result in the reduction of the Food Clerk position. Current Food Clerks hours will be given to Clerk’s Helpers.
Article 9 – Funeral Leave – add grandchildren to definition of immediate family.	Employer agreed to union proposal.
Article 14(X) – Stewards – Eliminate annual paid day of training for stewards.	Employer attempt to destroy our stewards’ program.
Appendix D – Meat Department Employees – Allow for unlimited case ready meat.	Phasing out of Meatcutters. No promotional opportunities into Meatcutter classification.
Bonuses	30¢ bonus for Food Clerks and Meat Cutters in 2003 and 2004 based on hours worked in previous year. 30¢ bonus for General Merchandise Clerks, Meat Clerks and Pharmacy Technicians in 2003 and 25¢ in 2004 based on hours worked in previous year. 15¢ bonus for Clerks Helpers in 2003 and 2004 based on hours worked in previous year.
Wages	October 2005 – Food Clerks and Meat Cutters – 30¢ per hour. General Merchandise Clerks, Meat Clerks Pharmacy Technicians – 25¢ cent per hour. Clerks Helpers – 15¢ per hour.
New Hires
SUNDAY PREMIUM OF $1.00 PER HOUR A FRACTION OF THE HOLIDAYS SIGNIFICANTLY LESS VACATION 7800 HOUR PROGRESSION TOP RATES $2.80 LESS PER HOUR THAN CURRENT RATES	Major incentive to get rid of current employees. Major incentive not to promote current employees.

Over the term of the agreement, the employers propose to shift close to ONE BILLION DOLLARS of Health Care expenses to YOU.

The employers’ proposal requires you to pay the following weekly premiums for your Health Care:

The employers’ proposed contributions are not sufficient to maintain the current benefits. This contribution rate could result in a 50% reduction from your current benefit levels. This means your benefits could be modified as follows:

Ø The elimination of key ancillary benefits such as Dental, Vision, Well Baby Care and Preventative Office visits.

Ø Elimination of Prescription Drug Benefit. At a minimum, the member could be responsible for up to $75 of a $150 prescription.

Ø On a $20,000 hospital bill, instead of 100% reimbursement you could be responsible for $10,000 or 50% of the entire bill.

Ø Chemotherapy Treatments could be capped, leaving you with thousands of dollars in unpaid treatments.

Ø Significant increases in office visit co-payments. For example on a $100 office visit, you could be responsible for up to $50 per visit. A cap on total office visits may also need to be imposed. This means you could be responsible 100% for some office visits.

In addition to a significant reduction in the level of benefits provided to both existing and all future retirees, retirees would be required to pay hundreds of dollars a month in premium payments.

The new hire health care contribution rate proposed by the employers is $3 to $4 per hour less than the rate proposed for your plan of benefits. This new hire rate would result in approximately a 75% benefit reduction. Not only is this a totally inadequate level of benefits, but it also creates an incentive for your employer to get rid of or under-schedule current employees in favor of lower-cost new hires.

The employers’ proposed contributions are not sufficient to maintain the current benefits.

Ø At the proposed contribution rate, there would be no future benefits earned – whatever you have earned today is all you would get. Thirty years of full time service would no longer guarantee a $1,900 monthly benefit.

Ø Although your benefits already earned are protected by law, the employer proposal may not even provide enough money to pay these benefits.

Ø No subsidized Joint & Survivor benefit on future accruals. Married participants benefits would be cut 12%.

The new hire retirement contribution rate proposed by the employers is 50¢ to $1 per hour less than the rate proposed for your retirement benefits. Again, another reason for your employer to get rid of or under-schedule current employees.

Finally, under the employer proposal, all local union benefit offices would be closed. This means you would no longer be allowed to get help from the local union offices with your health care or retirement benefits