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Business & Tech

UFCW Local 371 Ratifies New Stop & Shop Contract

Biannual pay raises and increased company contributions to health insurance and pension fund won in collective bargaining.

NEW HAVEN — In a pep rally atmosphere Sunday morning, an elated Brian Petronella, president of Local 371 of the United of Food and Commercial Workers union, shouted out the results of contract negotiations completed yesterday with Stop & Shop supermarkets.

With about 275 union members attending a contract ratification or rejection meeting in the Omni Hotel, Petronella listed the highlights of what he called a "great contract," including, for fulltime employees, an immediate $750 bonus, a $10 per week pay increase beginning August 1, and increased payments by the company to the union's health insurance policies and pension fund.

Employees will receive subsequent pay increases over the course of the three-year contract and partners of members in civil unions and same-sex marriages will be included under family benefits.

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After a presentation of about 20 minutes on what their new contract would provide, the members approved it by a voice vote. Local 371, which is based in Westport, represents about 5,000 Stop & Shop employees in Connecticut and western Massachusetts, but approval by those in attendance was sufficient to ratify the contract.

Reporters were not allowed to attend the meeting. The union said the vote on the contract was unanimous.

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Local 371, which represents employees in Stop & Shop meat, fish and deli departments, was one of five unions participating in the negotiations, which were held in Providence, Rhode Island. The contract covers stores in Connecticut, Massachusetts and Rhode Island.

Cashiers and other store employees in Connecticut are represented by Local 919 of the UFCW.

Under the contract, fulltime employees continue to be covered by a major medical policy as well as insurance plans for dental, eye care, prescriptions, and disability. They become vested in the pension fund after five years employment

At a news conference following the vote, Petronella said "we did a great job (negotiating) based on what's going on with retail businesses." He emphasized that fulltime Stop & Shop employees receive a pension, while employees in other food markets usually have 401K plans.

He said the unions rejected the company's proposal to give lump sum payments to employees. When the wage package was settled, he said, "it was a go."

Despite his satisfaction with the new contract, Petronella said it barely keeps up with the cost of living. He also pointed to the financial results released this week by Stop & Shop's Dutch owner, Royal Ahold NV. He said the new contract will cost the company an additional $160 million, an amount he characterized as reasonable for a company with billions of dollars in revenue.

The other locals in the negotiations were 328, with members in Massachusetts and Rhode Island, 1445, with members in New Hampshire and Massachusetts, and 1459, with members in Massachusetts. All five unions voted in favor of the new contract.

Before the negotiations were completed, Stop & Shop said on its Web site more competitors are now selling food and "the competitive landscape is fierce." The company said that of its top 10 New England retail food competitors, only Stop & Shop is entirely unionized.

In a statement released Sunday afternoon, Stop & Shop said, "Our goal during the negotiations was to reach fair agreements that will allow us to continue to provide good jobs to our associates and serve our customers for many years to come. We are pleased to have met this goal with these ratified agreements."

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