June 29, 2009

Today the committee met at UFCW’s Tigard Office to bargain your next contract. Proposals were not exchanged, although there were limited discussions between the parties.

At the last bargaining session the Union made a proposal based on new Health and Welfare data from the joint consultant. The new data suggested there would be increased hourly costs associated with maintaining your plan benefits. Both parties were concerned with the increase in money necessary to adequately fund your plan. The parties spent most of today in caucus discussing the increase and determining how it would affect their bargaining position. The Employers were unable to return to the table with a proposal.

The parties requested that the consultant look specifically at the increase in medical costs to determine whether the costs driving the increase were part of a trend or if they are due to a temporary increase in large claims. This information will better allow bargainers to determine what funding is truly necessary to ensure stability in your plan.

While not a bargaining issue, this seems a good place to bring you up to date on the pension. Your union trustees have decided to arbitrate the deadlock over whether to exercise the one year green zone extension on pension. Opting to go green will allow for several benefits. First, the cause of the underfunding is stock market losses and time may see a return in the market. Second, final rules associated with the Pension Protection Act of 2006 (PPA06) have not yet been written, thus changes that are currently being considered may not meet the future requirements when the rules are made. If we wait for the rules to be written, we can effectively measure twice and cut once. Third, there may be a political solution to the problem. Several changes in the PPA06 could help to lessen the impact of the financial difficulties.

UFCW Local 555 leadership and your bargaining committee recognize that you want to get your contract done. We desire the same thing, but as we look around the state at the aftermath of a poorly negotiated contract in Eugene, our resolve to get this one right is redoubled.

Thank you for your patience and support.