Shaw’s, union ink five-year contract
Potential strike avoided

By Donna Goodison  |   Tuesday, August 5, 2008  |  http://www.bostonherald.com  |  Business & Markets

Photo by Faith Ninivaggi
United Food and Commercial Workers Union Local 791 signed new five-year contracts with Shaw’s Supermarkets Inc., avoiding a potential strike by 5,600 store and warehouse workers.

The two sides, which had been negotiating since June, met every day last week before reaching a new agreement at 5 a.m. Sunday following a marathon overnight session with the help of a federal mediator. The old contract technically expired at 12:01 a.m. Sunday.

“We knew that it was going to be a tough contract based on the current state of the economy, as well as the very competitive retail market,” Local 791 spokesman Peter Derouen said. The union represents employees at the West Bridgewater chain’s 38 Massachusetts and Rhode Island stores and distribution center in Maine.

Shaw’s had proposed “substandard” wage increases with some lump-sum bonuses and wanted to eliminate its contributions to employees’ defined benefit pension plan, according to Derouen.

“We were able to get rid of the bonuses and get general wage increases for everyone,” he said. “The company had really been pushing to freeze the pension plan and then introduce a 401(k) plan, which we were able to fight off.” Shaw’s spokeswoman Judy Chong said the company was pleased with the outcome, but she declined to talk contract details. “The contract provides associates great benefits while allowing Shaw’s to be more competitive and flexible to serve our customers,” she said.

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