Stop and Shop, warehouse union healthcare cuts deadline arrives today
FREETOWN, Mass. (WLNE) — The deadline for Teamsters Local 25 and Stop & Shop to reach a new contract is here.
If a deal isn’t made, approximately 900 workers could lose their jobs.
If a contract isn’t finalized by Friday, the company plans to outsource work and eventually shutdown its Freetown distribution center.
Stop & Shop says the facility won’t close immediately, but without a deal, operations would wind down by June.
A spokesperson added that a study showed outsourcing could save the company millions each year.
Here’s Stop & Shop’s latest statement:
If a deal is not reached, the distribution center would close at a later date in June to allow ample time for the transition to a third-party distributor. Stop & Shop’s stores remain open and ready to serve customers, and we do not anticipate any disruptions to store operations.
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 earlier this week.
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 “shift to a more competitive healthcare plan” to reduce costs.