State Treasurers share ‘deep concern’ over labor dispute between Stop & Shop and Teamsters Local 25

FREETOWN, Mass. (WLNE) — The State Treasurers of Massachusetts, Rhode Island, and Connecticut sent a letter to Ahold Delhaize, the owner of Stop & Shop, expressing “deep concern” regarding the ongoing dispute on workers’ healthcare coverage Tuesday.

On Feb. 12, Teamsters Local 25 stated that Stop & Shop asked them to “give up” their health insurance or risk losing their jobs, while Stop & Shop has stated that they proposed to “shifting to a more competitive healthcare plan that still maintains a high standard of benefits” in an effort to reduce costs. 

As a result, Teamsters Local 25 asked residents to boycott Stop & Shop and picketed at the Freetown location on Feb. 21.

The two sides have been at odds over contract talks at the Freetown warehouse, in which Stop & Shop said if a new contract is not agreed on by Feb. 28, it will close the distribution facility.

In the letter, the state treasurers urged Stop & Shop to prioritize both its workforce and corporation value by negotiating in good faith.

“A resolution that ensures fair wages, benefits, and working conditions will not only protect your employees but will also safeguard Stop & Shop’s reputation and long-term success in our states.”

Additionally, the letter explained how this dispute could have operational and economic consequences, as well as “pose a significant reputation risk” to the company.

“Reports that Stop & Shop has proposed eliminating union health coverage and is threatening to shift warehousing operations out of Massachusetts if workers do not accept these terms raise serious concerns about the long-term stability of the company and its relationship with employees, customers, and the communities it serves.”

Massachusetts State Treasurer and Receiver-General Deborah B. Goldberg, Rhode Island State Treasurer James Diossa, and Connecticut State Treasurer Erick Russell sent the following in the letter:

“As the state treasurers of Massachusetts, Rhode Island, and Connecticut, we write to express our deep concern regarding the ongoing labor dispute between Stop & Shop and Teamsters Local 25. Stop & Shop plays a vital role in our states-serving our communities, employing thousands of workers, and contributing to our local economies. We value the company’s presence in our states, just as we value the well-being of the workers who make your business run every day.

Reports that Stop & Shop has proposed eliminating union health coverage and is threatening to shift warehousing operations out of Massachusetts if workers do not accept these terms raise serious concerns about the long-term stability of the company and its relationship with employees, customers, and the communities it serves. A strike impacting over 900 Teamsters, as well as potentially 30,000 UFCW members throughout New England, would have far-reaching operational and economic consequences.

Beyond the immediate disruptions, such a dispute poses a significant reputational risk to Stop & Shop and Ahold Delhaize. The company has built a strong customer base over decades, in part because consumers trust that it treats its workers fairly. A labor dispute of this magnitude risks eroding that trust, driving loyal customers to competitors and causing lasting damage to Stop & Shop’s brand. Today’s consumers are increasingly attuned to how companies treat their workforce, and widespread media attention on a prolonged labor conflict could lead to substantial backlash, negatively impacting both short-term sales and long-term market position.

We recognize that businesses with strong labor relations and fair employment practices tend to deliver more stable and sustainable returns. We urge Ahold Delhaize to engage in good-faith negotiations that prioritize both its workforce and its long-term corporate value. A resolution that ensures fair wages, benefits, and working conditions will not only protect your employees but will also safeguard Stop & Shop’s reputation and long-term success in our states.

We welcome the opportunity to discuss these concerns further and look forward to your response.”