Stop and Shop Freetown distribution center union, company spar over healthcare

FREETOWN, Mass. (WLNE) — Stop and Shop and the Teamsters Local 25 representing Stop and Shop workers are negotiating over workers’ healthcare coverage, according to a statement from representatives of both groups. 

Teamsters Local 25 stated that Stop and Shop is asking them to “give up” their health insurance or risk losing their jobs, while Stop and 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. 

According to Teamsters Local 25:

The company (Stop and Shop) is threatening to sub contract all of the distribution work out of Freetown, MA and have it shipped in from CT and Maine via Non Union labor. Teamsters Local 25 represents 650 workers at Stop and Shop and another 250 Class A CDL drivers who work for Manfi leasing which will also lose their jobs if they leave.

Teamsters Local 25 also stated that the use of sub contracted workers “will affect every Stop and Shop Store in New England because we will be forced to extend picket line to the stores.”

The statement also said that Local 25 has a 100 percent commitment from the UFCW members who work in the chain’s stores and that Stop and Shop has been in the current Union Health fund since 1983.

A representative from Stop and Shop stated the following regarding the company’s multi-year strategy to lower prices:

An important component of this effort is reducing overall costs, including distribution costs at our Freetown, Mass., facility. To achieve this, our goal is to work with Teamsters Local 25 to reach a productive new agreement. We believe a fair labor savings goal can be achieved, while also offering associates wage increases, increased pension contributions as required by the fund…

Part of the this proposal from the company includes a reduction in healthcare benefits to workers, according to the statement.

“Stop & Shop met with Local 25 to review our proposal, and if they are unwilling to work with us to reach a timely agreement that addresses Freetown’s high operational costs, we made it clear that Stop & Shop will transition to a third-party distribution partner and close the facility,” said the Stop and Shop statement.