HOUSTON, Nov. 5, 2020 /PRNewswire/
-- Kroger Houston has
announced details of its recent investment in associates, including
$56 million in wage increases and
steps to ensure access to reliable, affordable health care
benefits.
"Kroger's commitment to increase wages and ensure our associates
have access to world-class affordable, secure and reliable health
care benefits is a core priority for the company," said
Joe Kelley, president of Kroger's
Houston Division.
Kroger presented its "Last, Best and Final Offer" to the union
on August 19. Regrettably, UFCW Local
455 has refused to schedule a vote that would allow their members
(Kroger associates) to vote on the offer.
Kroger's $56 million investment in
wage increases and secure, affordable health care benefits for
associates comes after many months of negotiations between Kroger
and UFCW Local 455.
"Our plan removes any uncertainty frontline associates
experience with their current health and welfare trust fund plan,"
continued Kelley. "We believe this is the right path forward for
our associates."
Further, UFCW Local 455 has not allowed members to vote on a
tentative agreement that would improve the security and stability
of past and future pension benefits by moving to a new variable
annuity pension plan (VAPP) which would include a nearly
$1 billion investment by Kroger. UFCW
Local 455's failure to allow a vote on the pension proposal holds
both parties back from enhancing the security of pension benefits
of thousands of Kroger Family of Companies associates who are also
UFCW members across the country.
Facts about Kroger's Investment in Houston
Associates:
- Every frontline Houston associate will receive an increase in
pay over the next six months
-
- This additional wage increase follows wage increases earlier
this year and $8 million in wage
increases in October 2019
- Kroger Houston will spend more
than $75 million annually on health
care for hourly associates
- Kroger Houston associates will
pay just $32 for individual coverage
or $172 for family coverage each
month in a company-administered plan
-
- By comparison, the national average per month for individual
coverage is $103 and $501 for family coverage *
- Kroger has offered to invest nearly $1
billion to improve the stability and security of past and
future pension benefits for 33,000 associates across 14 divisions –
including Houston meat clerks. Establishing a new variable annuity
pension plan (VAPP) is the most effective way to do this.
Associates' health care coverage is transitioning to a
company-sponsored plan from their current South-Central Health and
Welfare Fund. Kroger believes the South-Central Fund is unstable
because it significantly reduced benefits in 2019 for Kroger
associates. This move to a company-administered plan is a critical
step in ensuring stable, affordable and secure benefits for
Kroger Houston associates now and in
the future.
To learn more, please visit: www.krogerhoustoncba.com.
*According to the Kaiser Family Foundation Employer Health
Benefits Summary of Findings, 2019.
About The Kroger Co.
At The Kroger Co. (NYSE: KR),
we are Fresh for Everyone™ and dedicated to our Purpose: To Feed
the Human Spirit®. We are, across our family of companies, nearly
half a million associates who serve over 11 million customers daily
through a seamless shopping experience under a variety of
banner names. We are committed to creating
#ZeroHungerZeroWaste communities by 2025. To learn more about us,
visit our newsroom and investor relations
site.
About Kroger
Houston
The Kroger Houston Division operates more
than 100 stores in SE Texas and
Louisiana and employs over 18,000
associates. Last year, Kroger
Houston donated $1.9 million
to local non-profit organizations and schools and donated 2.6
million pounds of food to local food banks through its
#ZeroHungerZeroWaste initiative.
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SOURCE The Kroger Co.